WASHINGTON—During a House Small Business Committee hearing members of Congress pressed representatives of the Small Business Administration over what is being done to combat loan fraud and also briefly discussed the issue of the SBA getting into the direct lending business, an expansion credit unions oppose.
During the hearing Congress also received a report management performance challenges in FY 2022 and received SBA Office of Inspector General’s (OIG) semiannual report in Congress.
During questioning, Rep. Roger Williams (R-TX) questioned SBA Inspector General Mike Ware about whether Congress should expand lending authority at the SBA in light of the fraud levels in the Economic Injury Disaster Loan (EIDL) program.
Taking ‘Action’ on Fraud
In addition, during the hearing, Rep. Young Kim (R-CA) also spoke to higher levels of fraud in direct lending programs. Kim brought up several questions, including whether the SBA had done everything possible to combat fraud and whether the SBA had the capability to take on more lending authority.
In response, Ware stressed the SBA was taking appropriate action on fraud. However, he declined to answer about whether or not the SBA should be given more lending authority.