WASHINGTON, D.C. - Today, Rep. Dean Phillips (MN-03), Vice Ranking Member of the House Small Business Committee, sent a letter to House and Senate Appropriations Committee leaders requesting adequate funding for the Small Business Administration’s (SBA) Office of the Inspector General (OIG). Phillips is a longtime advocate for oversight in pandemic lending programs.

SBA Inspector General Hannibal Ware has led overwhelmingly successful efforts to root out fraud, waste, and abuse at SBA, especially in its pandemic lending programs, like the Paycheck Protection Program and COVID-19 Economic Injury Disaster Loans. Despite historic levels of fraud in these programs, the OIG has helped to claw back billions of dollars from the perpetrators. In order to continue funding this important work, Congress must provide OIG with a robust operating budget in the fiscal year 2024 Financial Services and General Government conference agreement.

“Since the outset of the pandemic, OIG has played a crucial role in protecting the integrity of SBA pandemic lending programs, collaborating with law enforcement and other federal agencies to hold culprits to account and recover fraudulently obtained funds. At a House Small Business Committee hearing in July 2023, SBA Inspector General Hannibal Ware testified that the Office ‘provides taxpayers with an exponential return on investment,'" the letter reads. “As of November 2023, OIG’s actions have helped to generate over 600 convictions and the return, forfeiture, or seizure of more than $40 billion in PPP and COVID-19 EIDL funds.”

Unfortunately, the House Appropriations Committee recommended just $32 million for the SBA OIG, a 32% cut from the Senate Appropriations Committee’s recommendation of $47 million. The letter urges the leadership of the Appropriations Committees to accept the Senate’s recommendation in any conference agreement.

A copy of the letter can be found below.

Dear Chair Murray, Vice Chair Collins, Chairwoman Granger, and Ranking Member DeLauro,

As you consider the final fiscal year 2024 Financial Services and General Government appropriations bill in conference, we write to request $47 million in discretionary funding – consistent with the Senate Appropriations Committee’s recommendation – for the Office of the Inspector General (OIG) of the Small Business Administration (SBA). It is critical that we provide OIG with the resources it needs to continue its efforts to eliminate fraud, waste, and abuse at SBA, especially in its pandemic relief programs.

Congress provided unprecedented support to small businesses to help them survive the devastating economic effects of the COVID-19 pandemic. Despite the overwhelming success of Congress’ bipartisan relief efforts, bad actors took advantage of the lowering of anti-fraud controls in 2020, stealing billions of taxpayer dollars in the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) program.

Since the outset of the pandemic, OIG has played a crucial role in protecting the integrity of SBA pandemic lending programs, collaborating with law enforcement and other federal agencies to hold culprits to account and recover fraudulently obtained funds. At a House Small Business Committee hearing in July 2023, SBA Inspector General Hannibal Ware testified that the Office “provides taxpayers with an exponential return on investment.” As of November 2023, OIG’s actions have helped to generate over 600 convictions and the return, forfeiture, or seizure of more than $40 billion in PPP and COVID-19 EIDL funds.[1]

OIG must receive adequate funding through the appropriations process to continue carrying out its mission. A fiscal year 2024 budget of $47 million would allow OIG to maintain its staffing ranks, which have proven successful in investigating and remediating fraud. In addition, a robust budget for OIG would help the agency take advantage of legislation passed in the 117^th Congress that extended the statute of limitations for fraud in PPP and COVID-EIDL to 10 years.

Importantly, OIG’s enforcement efforts provide taxpayers with an outstanding return on investment by returning fraudulently obtained funds to the Treasury. Supporting the OIG budget will pay for itself over time, all while preserving the integrity of SBA’s lending programs.

Thank you for your consideration and shared commitment to supporting the Small Business Administration.

Sincerely,

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