On July 28th, the SBA Inspector General released a report on the "serious concerns of potential fraud" in the SBA's EIDL program. It's shocking on how much fraud they've identified as well as SBA shortcomings in verifying EIDL advance and EIDL loan recipients.
The most important thing to note from this report is that hundreds of millions of dollars in taxpayer dollars appear to have gone to people who should not have gotten this money.
The report, outlined in the video below, gives examples of various scams, including romantic scams where people would collect personal information, share it with ringleaders, who would then apply for bogus EIDL advances and loans.
SBA EIDL Fraud Report (Video)
This video runs through the fraud report from the inspector general as well as the defensive response from the SBA Administrator.
Another $80 billion for the SBA EIDL program is being discussed by lawmakers as we speak. This fraud report does not bode well for that bill — and the promise of quick new funding for small businesses.
How this SBA EIDL Fraud Report May Impact You
As we discuss in the video, the hundreds of millions of dollars that allegedly went overseas, to non-businesses, to new businesses, or to otherwise ineligible businesses, does not look favorably toward the new EIDL bill.
The new EIDL bill strongly suggests every small business that applied for the EIDL Advance should receive the full $10,000 Advance (grant) as it was originally intended.
However, based on this report, it would seem highly unlikely that a "quick" top-up to the full $10,000 amount would be done. At the least, it's likely the SBA would require more identity and bank account verification to ensure the correct people are receiving the money appropriately.
SBA EIDL New Funding Bill for the Full $10,000 EIDL Grant
Here is our video on the new $10,000 EIDL grant bill that is gaining traction in Congress. In this video we discuss how the bill specifically calls out that no further action should be needed by existing applicants of the EIDL program.
The bill says $80 billion should be allocated to the SBA and they should then top-up every eligible business who did not receive the full $10,000 grant.