SBA OIG Semiannual Report to Congress, Fall 2025 (April 1 – September 30, 2025)

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Semiannual Report to Congress 
April 1, 2025 – September 30, 2025 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | i 
Message from the Deputy Inspector General 
November 30, 2025 
I am pleased to present the U.S. Small Business Administration’s 
(SBA) Office of Inspector General (OIG) Fall 2025 Semiannual Report 
to Congress. This report summarizes OIG’s activities from  
April 1, 2025 through September 30, 2025, as required by law. 
Our Work this Period 
During this reporting period, OIG continued to bring fraudsters to 
justice and provide an exponential return on investment to 
American taxpayers. During the 6-month period from April through 
September 2025, OIG issued 15 reports with 52 recommendations 
to improve SBA operations and reduce fraud and unnecessary 
losses in agency programs. In addition, OIG investigations resulted 
in 128 indictments and 91 convictions. Overall, OIG’s investigations 
and audit work achieved total dollar accomplishments of 
$2.09 billion during this semiannual period. 
Significant reviews and investigations in this report include: 
• A Nevada man sentenced to 181 months 
imprisonment and ordered to pay over $11 million 
for misappropriating millions in Paycheck 
Protection Program (PPP) loans to gamble at Las 
Vegas casinos and purchase luxury vehicles and real 
estate. 
• A former SBA loan officer approved her own fraudulent loan application, initially declined 
by SBA, and then further abused her position by approving over $1 million in loans she or 
her relatives submitted. She pled guilty to making false statements to SBA in connection 
with this network of pandemic assistance fraud. 
• A management advisory (Report 25-12) on how SBA did not complete its review process 
for 37,938 PPP loans, totaling approximately $4.6 billion, that were flagged as potentially 
ineligible. The agency may miss opportunities to recover identified improper payments 
for these loans. 
• An evaluation (Report 25-24) identified that major disasters have become more frequent 
and costly, yet SBA’s budget requests for its disaster loan program have not significantly 
Deputy Inspector General 
Sheldon Shoemaker 

U.S. Small Business Administration | Office of Inspector General 
ii | Fall 2025 Semiannual Report to Congress 
increased nor accounted for major disaster activity. SBA did not make a timely formal 
request for funds and announced in October 2024 that funds in its disaster loans 
program account had been exhausted. As a result, it took over 2 months for funds to be 
appropriated, and SBA was delayed in disbursing disaster assistance loans to 
homeowners and businesses affected by disasters between October 15 and December 
21, 2024. 
• An evaluation (Report 25-25) of how SBA has been unable to pass a financial audit in the 
last 5 years, receiving disclaimers of opinion year after year. We recommended SBA 
enhance its new strategy for addressing material weaknesses to obtain a clean audit 
opinion. 
The nation can depend on OIG to provide independent, objective, and timely oversight of SBA. 
OIG’s engaged workforce will continue to give taxpayers a significant return on investment, 
rooting out fraud, waste, and abuse in SBA programs. 
 
Sheldon Shoemaker 
Deputy Inspector General 
 
 

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Semiannual Report to Congress, Fall 2025 | iii 
Contents 
Small Business Access to Capital ............................................................................................................................................................ 1 
Management Advisory and Evaluation ............................................................................................................................................ 2 
Notable Investigations ...................................................................................................................................................................... 3 
Disaster Assistance Program .................................................................................................................................................................. 6 
Management Advisories, Inspections, Audit, and Evaluation ........................................................................................................ 6 
Notable Investigations .................................................................................................................................................................... 10 
Contracting and Counseling Programs ................................................................................................................................................ 12 
Audits .............................................................................................................................................................................................. 12 
Investigation.................................................................................................................................................................................... 14 
Agency Management ........................................................................................................................................................................... 15 
Management Advisories, Audit, and Evaluations ......................................................................................................................... 15 
Other Significant OIG Activities ............................................................................................................................................................ 19 
Background Investigations ............................................................................................................................................................. 19 
Present Responsibility and Other Administrative Enforcement Actions ..................................................................................... 19 
Stakeholder Presentations on Fraud Awareness .......................................................................................................................... 19 
Reviews of Proposed Agency Regulations, Operating Procedures, and Other Initiatives .......................................................... 19 
Administrative False Claims Act Cases........................................................................................................................................... 20 
OIG Hotline............................................................................................................................................................................................ 21 
Serving Taxpayers ........................................................................................................................................................................... 21 
Organizational Overview ...................................................................................................................................................................... 22 
U.S. Small Business Administration ............................................................................................................................................... 22 
Office of Inspector General ............................................................................................................................................................ 23 
Appendices ............................................................................................................................................................................................ 26 
Appendix A: Reporting Period Statistical Highlights ..................................................................................................................... 26 
Appendix B: Full-Year Statistical Highlights, FY 2025 .................................................................................................................... 28 
Appendix C: Reports Issued ........................................................................................................................................................... 30 
Appendix D: Reports, Recommendations, and Management Decisions ..................................................................................... 32 
Appendix E: Investigations Reporting Statistics ............................................................................................................................ 60 
Appendix F: Legal Actions Summary .............................................................................................................................................. 61 
Appendix H: External Peer Reviews ............................................................................................................................................... 77 
Appendix I: Office of Inspector General Reporting Requirements .............................................................................................. 78 
Make a Difference ................................................................................................................................................................................ 80 
 

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NOTICE: 
Pursuant to the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, Public 
Law 117-263, Section 5274, any nongovernmental organizations and business entities identified 
in this report have the opportunity to submit a written response for the purpose of clarifying or 
providing additional context as it relates to any specific reference contained herein. Comments 
must be submitted to AIGA@sba.gov within 30 days of the final report issuance date. We 
request that any comments be no longer than two pages, Section 508 compliant, and free from 
any proprietary or otherwise sensitive information. The comments may be appended to this 
report and posted on our public website. 
 

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Semiannual Report to Congress, Fall 2025 | 1 
Summary of OIG Oversight Work 
Small Business Access to Capital 
The U.S. Small Business Administration (SBA) provides qualifying small businesses with capital to 
start up or grow through several key programs that have the overall goal of strengthening the 
American economy. The agency has a financial assistance portfolio of guaranteed loans totaling 
about $163 billion, as of June 2025. 
The Section 7(a) loan program is SBA’s principal vehicle for providing small businesses with access 
to credit that cannot be obtained elsewhere. Recipients may use proceeds from a 7(a) loan to 
establish a new business or assist in acquiring, operating, or expanding an existing business. This 
program relies on numerous outside parties (such as borrowers, loan agents, and lenders) to 
complete loan transactions. 
In 2023 and 2024, SBA made significant policy changes to its flagship 7(a) loan program to help 
expand access to capital for disadvantaged entrepreneurs. The agency lowered underwriting 
standards and granted mission-driven financial institutions access to the 7(a) loan program as 
Community Advantage Small Business Lending Companies. In 2025, SBA reversed many of these 
changes. The agency has recently issued a moratorium on the expansion of the program and will 
require existing lenders to meet prudent financial stability standards as a condition of further 
participation. 
Criminals use a wide array of techniques to fraudulently get — or induce others to obtain — SBA-
guaranteed loans. This includes submitting fraudulent documents, making fictitious asset claims, 
manipulating listed property values, using loan proceeds contrary to the terms of the loans, and 
failing to disclose debts or previous criminal records. Consequently, because of these criminal 
activities, there is a greater chance of financial loss to the agency and its lenders. The Office of 
Inspector General (OIG) dedicates a significant portion of its resources to identifying wrongdoers 
and, whenever possible, recovering taxpayer funds. 
The following summarizes our audit and investigative work this period. 
 
 

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Management Advisory and Evaluation 
SBA’s Actions to Address Forgiven PPP Loans 
Subsequently Flagged as Potentially Ineligible  
(Report 25-12) 
We advised SBA to act on forgiven Paycheck Protection Program (PPP) loans 
that it had flagged as potentially ineligible using hold code 70, a potential 
clawback. SBA uses hold code 70 to flag forgiven PPP loans that it suspects were originally 
ineligible for funds or forgiveness. 
We found SBA did not complete its review process for 37,938 PPP loans, totaling approximately 
$4.6 billion, flagged with hold code 70. SBA only completed the first two steps of its four-step 
review process for loan or forgiveness amounts in which the reviewer and approver either 
disagreed or recommended the amount be denied in part or in full. We also found 26,234 PPP 
loans, each valued at $25,000 or less, totaling approximately $454 million, that were forgiven and 
subsequently flagged by SBA with hold code 70. SBA stated it planned to review but may not 
recover funds deemed ineligible. Consequently, SBA could miss opportunities to recover identified 
improper payments for these loans. 
We recommended SBA complete reviews for these flagged loans to ensure borrowers met 
eligibility requirements and seek recovery of all ineligible loans. We also recommended the agency 
develop criteria to formalize policies and procedures for recovering improper payments for all 
loans subsequently flagged with hold code 70 and later deemed ineligible. SBA management 
agreed with our recommendations. 
Access this management advisory on the SBA OIG Reports site. 
Eligibility of PPP Loans Exceeding Maximum Size 
Standards (Report 25-14) 
This was a follow-up review of a report we issued in 2021 that identified 355 
PPP loans had been made to businesses that likely didn’t qualify as “small,” 
so meeting the size standard requirement. The businesses were likely 
ineligible for the funds meant to help small businesses during the economic crisis because they 
had more than 500 employees. Using data analysis, we identified 79 of those 355 loans still 
appeared to exceed the maximum size standard. The size standard is the number of employees 
established by SBA for the industry in which the business operates. 
We reviewed 64 of the 79 loans identified as potentially exceeding size standards and determined 
SBA did not validate size standard eligibility requirements for 48 of them, totaling approximately 

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Semiannual Report to Congress, Fall 2025 | 3 
$343 million. Of the 48 loans, 29 (totaling $196.5 million) were forgiven using memoranda 
unrelated to size standard requirements. Nineteen of the loans, totaling $146 million, were 
forgiven without sufficient documentation to support loan review decisions. SBA did not have 
reasonable assurance that borrowers met size standard requirements, which increased the risk of 
improper payments and loss of taxpayer funds. Although SBA implemented controls designed to 
ensure borrowers met size standard eligibility requirements, the agency overrode these controls 
and did not always validate eligibility for borrowers flagged as potentially exceeding the size 
standard. 
We recommended SBA obtain the documentation necessary to fully assess borrower size standard 
eligibility for the 48 loans to ensure eligibility requirements were met and, if not, seek repayment 
of forgiveness amounts. SBA management partially agreed with our recommendations. 
Access this evaluation on the SBA OIG Reports site. 
Notable Investigations 
Founders of Lender Service Provider Convicted for 
Multimillion PPP Fraud Scheme 
A Texas couple were convicted in an investigation involving over $6 billion in 
funded PPP loans and approximately $1 billion in SBA paid lender fees. This 
scheme was facilitated by recruiters, several of whom have been charged 
associated with an additional $198 million. They co-founded a financial technology company in 
April 2020 purportedly to assist applicants in obtaining PPP loans. To obtain larger loans for certain 
PPP applicants, they and other co-conspirators fabricated documents, including payroll records, 
tax documentation, and bank statements. They charged borrowers illegal kickbacks based on a 
percentage of the funds received. 
To obtain a greater volume of kickbacks from borrowers and percentage of lender fees from SBA, 
they submitted PPP loan applications they knew contained materially false information. They and 
others expanded the fintech’s operations through lender service provider agreements with two 
SBA lenders. Under these agreements, the fintech collected and reviewed PPP applications from 
potential borrowers on behalf of the lenders and worked with the lenders to submit applications 
to SBA in exchange for a percentage of the fees that SBA paid to the lenders for approved loans. 
The fintech also had a program called VIPPP, in which they offered a personalized service to help 
potential borrowers complete PPP loan applications. 

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Nevada Man Sentenced in $11 Million Pandemic Relief Fraud 
and Money Laundering Scheme 
A Nevada man was sentenced to 181 months of imprisonment and ordered to pay 
over $11 million in restitution after he misappropriated millions in loan proceeds 
to gamble at Las Vegas casinos and purchase luxury vehicles and real estate. He 
was ordered to forfeit two vehicles and three properties located in the Las Vegas area. He 
fraudulently submitted PPP loan applications and obtained over $11 million in taxpayer funding 
allocated by Congress for entrepreneurs and small business owners adversely affected by the 
pandemic. 
Suburban Chicago Businessman Convicted in PPP Fraud 
Schemes 
An Illinois man was convicted of multiple counts of bank fraud, making false 
statements to a financial institution, money laundering, and aggravated identity 
theft in a scheme to fraudulently obtain over $55 million in commercial loans, 
lines of credit, and PPP loans. He fraudulently obtained funds he was not eligible for from loans 
and lines of credit for his information technology companies. These funds came from federally 
insured financial institutions, two of which he later defaulted on. To qualify for the funds, he 
submitted bank statements fraudulently inflating deposits, balance sheets that overstated 
revenues, and fabricated audited financial statements with forged signatures. He is scheduled to 
be sentenced in November 2025. 
Former SBA Employee From South Florida Headed to Federal 
Prison After Defrauding Pandemic Relief Program 
A former SBA employee who fraudulently obtained pandemic relief money to 
spend on luxury items was sentenced to 54 months imprisonment and ordered to 
pay $1.3 million in restitution. While employed by SBA, the employee defrauded 
the PPP and EIDL program, as well as credit unions and local and state programs created to assist 
those adversely affected by the economic crisis. The employee used fraudulent documentation to 
qualify for a $230,246 small business loan, which they used to buy a designer teacup puppy and 
luxury items from Louis Vuitton, Nordstrom, Goyard, Chanel, and Fendi. In addition, the former 
employee also conspired with others to submit fraudulent PPP loan applications on their behalf 
and was later held accountable for losses over $830,000. 

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California Man Pleads Guilty in Scheme Involving Over 50 
Loan Applications 
A California man pled guilty of conspiracy to commit bank fraud and wire fraud in 
a scheme with his co-conspirators to submit 41 fraudulent PPP loan applications 
and 13 Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loan (EIDL) applications. 
The co-conspirators used the $13.7 million in PPP and EIDL funds for their own personal benefit, 
purchasing luxury vehicles and residential properties, cryptocurrency, and private jet travel. 
Houston Rap Artist and Influencer, 11 Others Found Guilty 
of PPP Fraud Scheme 
A Houston rap artist and social media influencer and 11 others were found 
guilty of conspiring to commit wire fraud in a multi-jurisdictional PPP fraud 
scheme. Between 2021 and 2022, the rap artist conspired with a criminal 
network of 112 suspects from Texas, Louisiana, Mississippi, Alabama, Tennessee, Florida, South 
Carolina, and Illinois. The rap artist fraudulently received over $2 million in PPP loans. Two of the 
suspects were federally incarcerated while participating in the scheme. 
 
 

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Disaster Assistance Program 
SBA’s direct disaster assistance loans have been the primary form of federal assistance for 
repairing and rebuilding nonfarm, private sector losses following declared disasters since the 
agency’s inception in 1953. SBA provides long-term financial assistance to businesses of all sizes, 
nonprofits, homeowners, and renters following a declared disaster — the only form of SBA 
assistance not limited to small businesses. Since low-interest disaster assistance loans are 
government aid, creditworthiness and the ability to repay are taken into consideration before a 
loan is awarded. 
The program includes four categories of loans for disaster-related losses: home disaster loans, 
business disaster loans, Economic Injury Disaster Loans (EIDL), and military reservist EIDLs. As a 
result of the pandemic’s widespread economic effects on the U.S. economy, Congress increased 
disaster program funding, approving over $405 billion in COVID-19 EIDLs. 
The following summarizes our audit and investigative work this period. 
Management Advisories, Inspections, Audit, and Evaluation 
COVID-19 Economic Injury Disaster Loan Servicing 
Capability (Report 25-16) 
We reviewed SBA’s COVID-19 EIDL servicing processes to determine the 
agency’s capability to service more than 2 million COVID-19 EIDLs. We found 
the COVID-19 EIDL Servicing Center demonstrated that it was capable of 
servicing over 2 million loans during the period of our review. The center appeared to be 
adequately staffed by its ability to complete over 23,500 servicing actions per month with an 
average processing time of 5.4 days per action. However, we identified opportunities for 
improvement related to formal documentation and issuance of performance goals and written 
COVID-19 EIDL servicing guidance. 
We made two recommendations for SBA to ensure appropriate processes are followed and to 
effectively monitor center operations. SBA managers agreed with both recommendations and 
have taken actions to implement both. 
Access this management advisory on the SBA OIG Reports site. 
 
 

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Automated Controls Should Ensure Compliance With 
Criteria (Report 25-18) 
We looked at SBA’s incomplete reviews of COVID-19 EIDLs and grants 
disbursed to borrowers who disclosed that they established their business 
after January 31, 2020, the date the Coronavirus Aid, Relief, and Economic Security (CARES) Act 
required for a business to be in operation to qualify for pandemic assistance funds. 
We found although SBA implemented automated controls to assess applicant eligibility, these 
controls were not fully utilized or properly aligned with CARES Act criteria. First, SBA did not 
directly ask applicants if they were in operation on January 31, 2020, as required by the Act. As a 
result of SBA not aligning its automated controls to program criteria, we identified 17,568  
COVID-19 EIDLs and EIDL advances totaling over $93 million that were given to applicants who 
disclosed that their businesses were established after January 31, 2020. 
We recommended SBA review those loans and advances to determine eligibility and to seek 
recovery of funds from ineligible recipients. We also recommended the agency assess the 
automated controls within the agency’s new lending platform, the Unified Lending Platform, to 
ensure they align with clearly defined disaster assistance criteria. SBA managers partially agreed 
with our first recommendation and agreed with our second recommendation. 
Access this management advisory on the SBA OIG Reports site. 
Hurricance Helene – Initial Disaster Assistance and 
Recovery Response (Report 25-19) 
We assessed SBA’s initial response to Hurricane Helene, including staffing, 
loan application volume, and timeliness of disaster loan approvals. We found 
the agency promptly established a field presence, adequately staffed 
recovery centers, responded to applicant queries and processed loans in a timely manner. We also 
found SBA processed loan applications in 20 days on average but was unable to disburse many of 
those loans due to a 68-day funding lapse. As a result, the overall processing time was 69 days on 
average with the funding lapse and 64 days on average without it. In addition, we identified 
opportunities for SBA to optimize its outreach efforts so disaster survivors are aware of the 
assistance available to them. 
We recommended SBA review current outreach strategies, immediately conduct outreach efforts 
in North Carolina and South Carolina, and perform a root cause analysis to determine the basis of 
insufficient outreach efforts in those two states. We also recommended the agency implement 
appropriate changes to ensure maximum awareness of available assistance to disaster survivors 

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that account for rural areas. The agency partially agreed with Recommendations 1 and 2 and 
disagreed with Recommendation 3. 
Access this inspection on the SBA OIG Reports site. 
Hurricane Milton – Initial Disaster Assistance and 
Recovery Response (Report 25-20) 
We assessed SBA’s initial response to Hurricane Milton, including staffing, 
loan application volume, response time to applicant queries, and timeliness 
of disaster loan approvals. We found that in SBA’s initial disaster assistance 
response to Hurricane Milton, the agency promptly established a field presence, adequately 
staffed recovery centers, and responded timely to applicant queries. Although SBA processed loan 
applications in 17 days on average, the agency was unable to disburse all but one of those loans 
during a 68-day funding lapse. As a result, the overall processing time from application receipt to 
disbursement of funds was 73 days on average for applications submitted before or during the 
funding lapse and 19 days on average for applications submitted after supplemental 
appropriations were approved. 
We recommended SBA review current outreach strategies, including staffing assignments, and 
make appropriate changes to optimize resources, thereby ensuring maximum awareness of 
available assistance to disaster survivors. We also recommended the agency implement processes 
to gather feedback from applicants that would assist in monitoring the effectiveness of its 
outreach methods. SBA management partially agreed with Recommendation 1 and agreed with 
Recommendation 2. 
Access this inspection report on the SBA OIG Reports site. 
SBA’s Collection Efforts on Delinquent COVID-19 EIDLs 
(Report 25-23) 
We reviewed SBA’s efforts to collect on delinquent COVID-19 EIDLs with 
collateral and personal guarantors, who are obligated to pay a debt when 
the primary borrower fails to do so. As of December 18, 2024, SBA charged 
off over $47 billion in delinquent COVID-19 EIDLs. Charge-off is an administrative action taken by 
SBA after all reasonable efforts to achieve defaulted loan amounts have been exhausted, ending 
active collection. After charge off, the loan and remaining obligors must be referred to the  
U.S. Department of the Treasury unless further collection is barred. Less than 1 percent of the 
original loan amounts were recovered. 

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We found SBA could better implement strategies to collect on delinquent COVID-19 EIDLs as 
outlined in federal laws, standards, and agency policies. When borrowers defaulted on COVID-19 
EIDLs and then did not respond to automated demand letters, telephone calls, and emails, SBA 
abandoned the collateral and then charged off the loans. By not maximizing collection efforts early 
in the delinquency process, SBA reduced the likelihood of recovering the $47 billion. 
We recommended SBA conduct a study to determine the minimum loan dollar thresholds for 
performing site visits and implement policies and procedures based on those results. A site visit to 
business locations should be made to inspect the current condition of collateral when warranted 
by prudent lending practices. A prudent lending practice is based on sound judgment to protect 
federal and lender interests. We recommended SBA verify delinquent obligors are reported to 
credit bureaus in a timely manner. We also recommended the agency establish a reasonable 
standard for referring delinquent COVID-19 EIDLs for litigation. 
SBA management agreed with one recommendation and disagreed with two. 
Access this audit on the SBA OIG Reports site. 
SBA’s Processes to Forecast and Request Appropriation 
Dollars (Report 25-24) 
We evaluated SBA’s processes to forecast and request appropriation dollars 
for its disaster loans program account. Since 2009, major disasters have 
become more frequent and costly, the credit subsidy rate has gradually 
increased, and disaster assistance loan approvals have increased annually. Despite this, SBA has 
consistently forecasted that the disaster loan program would lend $1.1 billion annually, a 10-year 
average amount based on normalized activity. In the 2024 storm season, several major hurricanes 
made landfall in the United States, leading to SBA’s announcement on October 15, 2024 that funds 
in its disaster loans program account had been exhausted. As a result, SBA could not approve and 
disburse new loans until Congress appropriated additional funds over 2 months later. 
We found SBA did not adequately forecast funding needs for the disaster loan program in its 
annual budget request nor ensure monthly reports submitted to Congress were clearly 
interpreted, submitted on time, and in compliance with all U.S. Code requirements. The agency 
also did not notify Congress, in writing, regarding the need for supplemental funding as soon as a 
shortfall was anticipated. 
We recommended SBA ensure historical factors are considered when developing the budget 
request. We also recommended that monthly reports to Congress comply with U.S. Code and are 
enhanced to clearly explain the information in writing of the need for supplemental disaster loan 

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program funds as soon as the agency anticipates a shortfall. SBA management agreed with all four 
recommendations. 
Access this evaluation on the SBA OIG Reports site. 
Notable Investigations 
For more investigative cases involving the PPP, another pandemic assistance program, see the  
Small Business Access to Capital section. 
Former SBA Employee and Two Others Plead Guilty of 
Pandemic Fraud 
A former SBA loan officer pled guilty to making false statements on SBA pandemic 
assistance loans she applied for and approved herself after they were initially 
declined by the agency. She began working for SBA in October 2020. In May 2021, 
she submitted a fraudulent EIDL application for $170,000 that SBA declined. She later approved 
her own loan applications for more than $550,000. She resigned from SBA after the agency 
discovered she had abused her position by approving loans she or her relatives had submitted. 
Two other women pled guilty to making false statements to SBA. One admitted to trying to obtain 
more than $150,000 in fraudulent EIDLs and the other obtained more than $1.25 million from the 
PPP. 
Colorado Springs Funeral Home Operator Sentenced in 
Gruesome Fraud 
A Colorado man was sentenced to 240 months imprisonment and ordered to pay 
$1 million in restitution in a wire fraud scheme that involved the improper 
internment of bodies entrusted to his funeral home. From 2019 to 2023, the man 
ran a scheme to defraud customers by not cremating or burying about 190 bodies, concealing 
them in various states of decay and decomposition. The man also submitted EIDL applications for 
his business, falsely certifying they were not engaged in any illegal activity when the funeral home 
was engaged in an ongoing wire fraud scheme to defraud customers of their business. 
Federal Law Enforcement Officer Arrested for Allegedly 
Obtaining EIDL Funds for Shell Companies 
A U.S. Customs and Border Protection officer was arrested on a five-count federal 
grand jury indictment alleging he fraudulently obtained nearly $150,000 in EIDL 
funds for two sham businesses. He applied for the EIDLs on behalf of his  
San Bernardino, California transportation companies, neither of which had substantial business or 

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employees. He misappropriated and misused the funds he received from SBA for his own personal 
benefit. 
Suburban Chicago Police Officer Charged With Fraud 
An Illinois city police officer was indicted in the Northern District of Illinois for 
wrongfully receiving EIDL and PPP funds. He allegedly inflated and falsified 
average monthly payrolls so he could qualify for three loans. He also allegedly 
concealed the receipt of the loans on his Chapter 7 bankruptcy petition. 
California CEO Sentenced for Role in EIDL Kickback Scheme 
A California man pled guilty to wire fraud and money laundering and was 
sentenced to 48 months imprisonment and 36 months supervised release. He 
was ordered to pay over $7.5 million in restitution. From March 2020 until 
December 2021 he submitted over 120 fraudulent EIDL applications and received 
$12 million. He advised his clients to create fictitious corporate entities and submitted the 
applications to SBA on their behalf in exchange for kickbacks. The applications contained falsified 
numbers of employees, gross revenues, and costs of goods sold. 
Maui Man Repaid $491,000 in SBA Loans Following 
Allegations of Misappropriation With Cryptocurrency 
A Hawaii man voluntarily wire transferred $491,000 back to SBA in full 
repayment of his EIDL from the Maui wildfires disaster in August 2023. It was 
alleged he misappropriated the loan proceeds into a cryptocurrency account for 
personal use. 
 
 

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Contracting and Counseling Programs 
The U.S. government is the largest single purchaser of goods and services in the world, awarding 
over $760 billion in prime contracts annually. SBA works to maximize opportunities for small 
businesses to receive these contract awards. As mandated by the Small Business Act, the 
government-wide goal is to award at least 23 percent of contract dollars to small businesses. The 
government seeks to award small disadvantaged businesses, Women-Owned Small Businesses, 
and service-disabled veteran-owned small businesses each at least 5 percent of the value of prime 
and subcontracting awards each year. The target for historically underutilized business zone 
(HUBZones) firms is at least 3 percent of the value of all prime and subcontract awards each year. 
SBA has specific programs that focus on strengthening types of small businesses, like those owned 
by service-disabled veterans and women, as well as small businesses that are disadvantaged or 
located in HUBZones. The HUBZone program is intended to help small businesses stimulate their 
economically challenged local economies. Similarly, to help small, disadvantaged businesses gain 
access to federal and private procurement markets, SBA’s 8(a) Business Development Program 
helps socially and economically disadvantaged entrepreneurs who own small businesses gain 
business skills and access to federal contracting opportunities so they can better compete in the 
open marketplace. The program offers free business development education, training workshops, 
and matchmaking opportunities with federal buyers. 
SBA also aids existing and prospective small businesses through a variety of counseling and training 
services offered by partner organizations. Among these partners are Small Business Development 
Centers (SBDC), the SCORE mentoring network, Women’s Business Centers, and Veterans Business 
Outreach Centers. 
The following summarizes our audit and investigation work this period. 
Audits 
New Jersey Small Business Developent Center’s 
Compliance With Cooperative Agreement Requirements 
(Report 25-17) 
We reviewed whether the New Jersey SBDC met financial, programmatic, 
and performance requirements according to its cooperative agreement with 
SBA. The agency is authorized to make grants to states, institutions of higher education, and 
Women’s Business Centers to establish an SBDC. An SBDC lead center manages a network of 
service centers that provide free business counseling and low-cost training to small businesses 
owners and entrepreneurs. Since 1978, Rutgers University has been a grant recipient and hosts the 

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New Jersey SBDC to administer its program with a cost-share budget of $7.9 million. We selected 
the New Jersey SBDC for inspection based on risk factors related to the materiality of the federal 
grant award, prior audit findings, previous regional coverage, and OIG Hotline complaints. 
We found the SBDC could improve how it meets financial requirements by ensuring costs are 
allowable, reporting budgetary changes that affect match requirements, and accurately reporting 
program income. We found the center did not maintain counselors certified to assist small 
businesses with exporting. There also were issues with publicizing operating hours, informing SBDC 
personnel of whistleblower protections, and improving coordination with SBA so the center’s 
performance goal progress could be accurately tracked and monitored. 
We made 10 recommendations for SBA to enforce financial compliance, strengthen program 
integrity, and address risks in program performance. Management agreed or partially agreed with 
all 10 recommendations. 
Access this inspection on the SBA OIG Reports site. 
SBA’s Oversight of Shuttered Venue Operators Grant 
Recipients (Report 25-21) 
We reviewed whether SBA implemented processes to effectively ensure 
misused or unused funds in the Shuttered Venue Operators Grant (SVOG) 
program were returned to the U.S. Department of Treasury. We also 
reviewed if the agency monitored recipients use of grant funds and monitored program 
performance. In response to the economic crisis during the pandemic, Congress authorized SBA to 
award grants to eligible businesses in the live arts and entertainment industry. As of July 2022, SBA 
disbursed $14.6 billion to 13,011 awardees to include supplemental awards to 9,800 of the original 
awardees. 
We found SBA identified $544 million in potential improper payments that need to be recovered 
but did not demand return of funds and did not refer any recipients to Treasury. We also found 
$4.8 billion in grants were not closed out in a timely manner. Without prompt action to close out 
these awards, SBA has no assurance that taxpayer funds were used for the intended purpose. SBA 
reported that the SVOG program met all three performance goals; however, we found that wasn’t 
the case for one. The number of SVOG recipients that continued or reopened operation was not 
measured with representative data. As a result, government leaders cannot assess the true effects 
the program had on small live entertainment and arts businesses. 
We made six recommendations for SBA to improve recovery of SVOG funds where needed, 
expedite the award closeout process, better monitor the use of SVOG funds, and report on the 

U.S. Small Business Administration | Office of Inspector General 
14 | Fall 2025 Semiannual Report to Congress 
limitations of data used for SVOG performance results. SBA managers agreed with all 
recommendations and started to issue demand letters to SVOG recipients that were found to be 
ineligible, received an incorrect award amount, or used funds for unallowable expenses. 
Access this audit report on the SBA OIG Reports site. 
Investigation 
Construction Company Owner Sentenced for Fraudulently 
Obtaining Federal Contracts 
A Wisconsin woman was sentenced to 4 months incarceration for making false 
statements to SBA, falsely certifying that her company met the SBA requirements 
for the HUBZone program. She was awarded seven contracts that were set aside 
for small businesses in historically underutilized business zones. She also used her father's 
construction company to perform work on behalf of her construction company. 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 15 
Agency Management 
OIG is responsible for ensuring SBA goals are met and that managers appropriately safeguard the 
agency from fraud, waste, and abuse. As part of this work, OIG coordinates with the offices of the 
Chief Financial Officer, the Chief Information Officer, and the Chief Operating Officer to 
independently review financial reporting and performance management, human resources, 
procurements and grants, space and facilities, and maintenance of SBA’s information systems and 
related security controls. 
The following summarizes our audit work this period. 
Management Advisories, Audit, and Evaluations 
Undetected Vulnerabilities From Personally Owned 
Devices (Report 25-11) 
We identified in our fiscal years 2023 and 2024 Federal Information Security 
Modernization Act (FISMA) assessments that SBA did not have multifactor 
authentication enabled for users to access the agency’s secure network. 
Multifactor authentication is a high security control that requires a username, password, and an 
identity card, unique security code, or biometrics to access a system. Relying on usernames and 
passwords alone greatly increases the risk of SBA data being accessed and exploited by cyber 
criminals and other bad actors. We found possible security threats from employees’ personally 
owned devices accessing the agency’s information technology network from national and 
international locations with only a username and password. We also determined personally owned 
devices could access the SBA network from foreign locations, which is prohibited by SBA IT policy. 
SBA’s information systems are more vulnerable to unauthorized access that could exploit sensitive 
agency information. 
We recommended the agency ensure devices use multifactor authentication, that they have 
updated anti-malware software, and appropriate security controls and encryption. We also 
recommended restricting access to SBA systems from international IP addresses and real-time 
continuous monitoring of mobile and personal computer data. SBA management agreed and all 
the recommendations have been closed or resolved. 
Access this management advisory on the SBA OIG Reports site. 
 
 

U.S. Small Business Administration | Office of Inspector General 
16 | Fall 2025 Semiannual Report to Congress 
Fiscal Year 2024 Federal Information Security 
Modernization Act (Report 25-13) 
We found SBA generally responded to previously identified vulnerabilities and 
made progress in the security training domain area in its fiscal year (FY) 2024 
FISMA evaluation and assessment of SBA’s information security program. The 
agency met the baseline in the area of incident response but fell below the baseline for an 
effective security program in several areas. We rated SBA’s overall information security program as 
“not effective.” 
This fiscal year there were seven new recommendations for improvement. There were 11 open 
recommendations from 3 prior evaluations. Repeat recommendations from prior years were not 
included in this report because they have not yet been implemented. The agency successfully 
closed four recommendations from fiscal year 2023. SBA managers agreed with six 
recommendations and partially agreed with one. Their corrective actions resolved all the 
recommendations. 
Access this evaluation on the SBA OIG Reports site. 
Independent Auditors’ Report on SBA’s Fiscal Year 2024 
Compliance With the Payment Integrity Information Act 
of 2019 (Report 25-15) 
Our auditors found SBA was not compliant with reporting requirements 
under the Payment Integrity Information Act of 2019 and Office of 
Management and Budget (OMB) guidance. Specifically, SBA is not compliant with the Act because 
it did not publish improper and unknown payment estimates within the FY 2024 Agency Financial 
Report and accompanying materials for the Shuttered Venue Operators Grant and the payments 
for covered loans in the 7(a) and 504 loan guaranty programs under the Debt Relief Program 
(Section 1112 Payments). 
The agency also did not design and implement adequate review procedures to produce reliable 
sample results that were used to develop and publish accurate improper and unknown payment 
estimates for the 7(a) loan guaranty purchases, disaster assistance loans, Paycheck Protection 
Program (PPP) loan forgiveness, and PPP loan guaranty purchases programs. It did not publish 
effective corrective action plans for the PPP loan forgiveness and PPP loan guaranty purchases and 
did not publish corrective action plans for the Section 1112 payment programs and activities. The 
agency should improve payment integrity for the 7(a) loan guaranty approvals and 504 Certified 
Development Company loan approvals programs and activities as demonstrated by the increase in 
improper payment estimates between FYs 2023 and 2024. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 17 
SBA concurred with the recommendations and indicated that it is committed to reducing the dollar 
amount of improper payments and ensuring program integrity. 
Access this audit on the SBA OIG Reports site. 
SBA’s Controls Over Cash Contributions and Gifts, Fiscal 
Year 2024 (Report 25-22) 
We found SBA generally complied with established guidance over the 
solicitation, acceptance, holding, and use of cash contributions and gifts 
totaling $520,000 during FY 2024 from National Small Business Week 
cosponsors. However, we found SBA should improve its agency vetting form to show that each 
potential cosponsor was clear of conflicts of interest concerns before agency officials signed 
cosponsorship agreements. 
As a result of our review, the SBA Office of Strategic Alliances took immediate actions to update 
the form used to vet conflicts of interest for cosponsors showing the Office of General Counsel’s 
review and clearance of potential conflicts of interest. Therefore, we did not make any 
recommendations in this report. 
Access this evaluation on the SBA OIG Reports site. 
SBA’s Controls to Address Financial Statements Audit 
Disclaimers and Material Weaknesses (Report 25-25) 
Over the last 5 years, SBA has been unable to pass a financial audit, receiving 
disclaimers of opinion year after year. The independent public auditor has 
been unable to offer an opinion on the financial state of SBA because it has 
not received sufficient evidence to support a number of balances. We reviewed SBA’s history of 
disclaimers and material weaknesses from fiscal years 2020 to 2024, open recommendations, and 
SBA’s new strategy for addressing material weaknesses and obtaining a clean audit opinion. 
SBA’s accounting deficiencies were primarily related to administering an unprecedented amount 
of disaster assistance aid and guaranteed loan funds to help eligible small business owners and 
entrepreneurs adversely affected by the pandemic. Over the course of 18 months, the agency 
delivered 22.1 million pandemic assistance loans and grants, totaling $1.2 trillion. To address the 
systemic financial reporting deficiencies, SBA launched its Financial Statement Audit Remediation 
Strategy in January 2025 to resolve the seven material weaknesses and 56 open audit 
recommendations. 

U.S. Small Business Administration | Office of Inspector General 
18 | Fall 2025 Semiannual Report to Congress 
We made recommendations to enhance implementation of SBA’s financial statements 
remediation strategy. We recommended the Administrator appoint a senior executive to lead the 
effort and emphasize audit remediation priorities through consistent agencywide communication. 
We also recommended that the remediation strategy be incorporated into SBA’s next strategic 
plan and individual performance plans to ensure accountability. SBA management agreed with all 
recommendations. 
Access this evaluation on the SBA OIG Reports site. 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 19 
Other Significant OIG Activities 
Background Investigations 
During this reporting period, OIG initiated 16 background investigations, issued 4 security 
clearances for OIG employees and contractors, and adjudicated 21 background investigative 
reports. 
Present Responsibility and Other Administrative Enforcement 
Actions 
OIG promotes program integrity by making present responsibility referrals to SBA and other 
agencies. Present responsibility means the business ethics, integrity, honesty, and competence of 
persons who participate in SBA programs or otherwise do business with the government. During 
this reporting period, OIG prepared 33 present responsibility referrals. 
Present responsibility referrals can result in suspensions, debarments, and similar administrative 
enforcement actions. These actions protect taxpayer funds from program participants who are not 
a good risk for the government. 
A typical OIG referral contains a summary of allegations and criminal, civil, administrative, or other 
evidence supporting the recommendation. Most OIG administrative referrals involve SBA’s loan 
and contract programs. OIG ensures that a suspension and debarment official reviews all 
appropriate allegations arising in other contexts, such as the investigation of False Claims Act 
cases. 
Stakeholder Presentations on Fraud Awareness 
During this reporting period, SBA OIG held 105 presentations for internal and external 
stakeholders to raise awareness of fraud, waste, and abuse related to SBA programs. More than 
1,527 participants attended these events. 
Reviews of Proposed Agency Regulations, Operating Procedures, 
and Other Initiatives 
OIG reviews changes SBA proposes to make to its program directives, such as regulations, internal 
operating procedures, agency policy notices, and SBA forms completed by the public. OIG often 
identifies material weaknesses in the proposals and makes recommendations to the agency for the 

U.S. Small Business Administration | Office of Inspector General 
20 | Fall 2025 Semiannual Report to Congress 
purpose of promoting economy and efficiency in the administration of, or preventing and 
detecting fraud and abuse in, its programs and operations. During the reporting period, OIG 
reviewed 76 proposed revisions of these program directives and submitted comments designed to 
mitigate risk or improve 10 of these initiatives. 
Administrative False Claims Act Cases 
OIG does not have any administrative False Claims Act cases to report for this period. In addition, 
there were no instances in which the reviewing official declined to proceed on a case reported by 
an investigating official. 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 21 
OIG Hotline 
Offices of inspector general have a hotline function that takes complaints from anyone who 
suspects fraud, waste, abuse, or serious mismanagement within an agency or its programs by 
employees, contractors, and the public. Hotline complaints may result in corrective actions, audits, 
or administrative, civil, or criminal investigations. 
Our OIG Hotline staff examines complaints and monitors the progress of matters referred to SBA 
program offices for action to ensure the agency has promptly followed up, adequately resolved 
allegations, and documented any corrective actions. 
Serving Taxpayers 
OIG’s Hotline team utilizes data 
analytics to review and sort 
complaints given the large influx 
associated with SBA’s pandemic 
response programs. The staff 
addresses each complaint received 
via online submissions to the SBA OIG 
website, email, and posted mail, as 
well as referrals from banks and 
other agencies. 
During this semiannual period, the 
OIG Hotline received more than 10,300 complaints of loan fraud and abuse, identity theft, contract 
fraud, and problems with SBA’s customer service. 
In total, since the pandemic began in March 2020, OIG has received more than 321,000 
complaints, which averages more than 58,500 per year. By contrast, the OIG Hotline received 742 
complaints in 2019. 
 
 

U.S. Small Business Administration | Office of Inspector General 
22 | Fall 2025 Semiannual Report to Congress 
Organizational Overview 
U.S. Small Business Administration 
SBA’s mission under the Small Business Act, as amended, is to maintain and strengthen the 
nation’s economy by enabling the establishment and vitality of small businesses and assisting in 
the economic recovery of communities after disasters. 
SBA is organized around the areas of financial, contracting, entrepreneurial development, and 
disaster assistance. The agency also represents small businesses through an independent advocate 
and an ombudsman. 
SBA headquarters is in Washington, D.C. The agency has staff in 10 regional offices, 68 district 
offices and corresponding branch offices, and 2 disaster field operation centers. SBA also has 6 
government contracting area offices and maintains a network of resource partners in all 50 states, 
the District of Columbia, Puerto Rico, American Samoa, the U.S. Virgin Islands, and Guam. 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 23 
Office of Inspector General 
OIG’s mission is to 
provide independent, 
objective, and timely 
oversight to improve the 
integrity, accountability, 
and performance of SBA 
and its programs for the 
benefit of all Americans. 
Our strategic plan for 
fiscal years 2026–2030 
has three goals. In 
addition to the Office of 
Counsel to the Inspector 
General, four divisions assist in carrying out the statutory responsibilities of OIG: the Audits 
Division, Investigations Division, Technology Solutions Division, and the Management and 
Operations Division. 
Our vision is to be valued and engaged change agents who set the standard for oversight 
excellence in support of America’s small businesses. We seek to demonstrate our values of 
integrity, commitment, and excellence as we deliver products and services of the highest quality 
defined by accuracy, timeliness, fairness, and usefulness. 
The Audits Division performs and oversees audits and reviews to promote the economical, 
efficient, and effective administration of SBA programs and operations. Key areas of emphasis are 
SBA loan programs, disaster assistance, business development, and government contracting 
programs, as well as mandatory and other statutory audit requirements involving information 
technology security and financial reporting. 
The Investigations Division manages initiatives to detect and deter illegal and improper activities 
involving SBA’s programs, operations, and personnel. The criminal investigations staff carries out a 
full range of traditional law enforcement functions. 
Within the division, Hotline staff reviews allegations of waste, fraud, abuse, and severe 
mismanagement within SBA or its programs made by employees, contractors, and the public. A 
preliminary review of all complaints is conducted to determine the appropriate course of action. 

U.S. Small Business Administration | Office of Inspector General 
24 | Fall 2025 Semiannual Report to Congress 
As part of the review process, Hotline staff may coordinate reviews of allegations within OIG, SBA 
program offices, or other government agencies. 
The National Disaster Program identifies fraud trends and develops investigative leads associated 
with the SBA pandemic assistance and disaster assistance loan programs working in coordination 
with the OIG Investigations, Audits, and Technology Solutions divisions, SBA, Department of Justice 
and external law enforcement agencies to detect and combat fraud and recover agency funds. 
The Technology Solutions Division provides data analytics, cybersecurity and digital cloud 
solutions, and IT user support to OIG. The division’s long-range strategies and goals are to root out 
fraud, waste, and abuse in agency programs by developing innovative techniques in automation, 
artificial intelligence, and machine learning for the benefit of American small businesses and 
entrepreneurs. 
The Management and Operations Division provides business support, such as budget and financial 
management, human resources, and procurement, for various OIG functions and activities. The 
security operations staff within the division conduct required employee and contractor 
background investigations to achieve a high level of integrity in the agency's workforce. It makes 
adjudications on OIG employees and contractors for issuance of Personal Identity Verification 
cards pursuant to Homeland Security Presidential Directive-12 background investigations 
requirements. 
The Office of Counsel provides legal and ethics advice to all OIG components; protects the OIG’s 
interests in litigation arising out of or affecting OIG operations; assists in prosecuting criminal, civil, 
and administrative enforcement matters; processes subpoenas; responds to Freedom of 
Information Act and Privacy Act requests, and reviews and comments on proposed policies, 
regulations, legislation, and procedures. 
OIG’s headquarters is in Washington, D.C. Our field offices are in Atlanta, Georgia; Boston, 
Massachusetts; Charlotte, North Carolina; Chicago, Illinois; Columbus, Ohio; Dallas-Fort Worth, 
Texas; Detroit, Michigan; Denver, Colorado; Seattle, Washington; Herndon, Virginia; Houston, 
Texas; Los Angeles, California; Miami, Florida; New York, New York; Philadelphia, Pennsylvania; 
Sacramento, California; San Francisco, California; Tampa, Florida; and Washington, D.C. 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 25 
 

U.S. Small Business Administration | Office of Inspector General 
26 | Fall 2025 Semiannual Report to Congress 
Appendices 
Appendix A: Reporting Period Statistical Highlights 
Summary of OIG Dollar Accomplishments 
Dollar Accomplishments as a Result of Investigations and Related 
Activities 
Total 
Potential Investigative Recoveries and Fines 
$178,952,402 
Other Recoveries (e.g., administrative seizures with partner law 
enforcement agencies/civil settlements/qui tam) 
$53,337,995 
Asset Forfeitures Attributed to OIG Investigations 
$8,971,816 
Loans/Contracts Not Approved or Canceled as a Result of 
Investigations 
$491,000 
Investigations Subtotal 
$241,753,213 
Dollar Accomplishments as a Result of Audit Activities 
Total 
Disallowed Costs Agreed to by Management 
$1,845,761,284 
Recommendations that Funds Be Put to Better Use Agreed to by 
Management 
— 
Audit Subtotal 
$1,845,761,284 
Total OIG Dollar Accomplishments 
$2,087,514,497 
Efficiency and Effectiveness Activities Related to Audit, Other Reports, and 
Follow-up Activities 
Reports Issued 
15 
Recommendations Issued 
52 
Dollar Value of Costs Questioned 
$1,845,761,284 
Dollar Value of Recommendations that Funds Be Put to Better 
Use 
0 
Recommendations With Management Decisions 
52 
Recommendations Without a Management Decision 
0 
Collections as a Result of Questioned Costs 
0 
Indictments, Convictions, and Case Actions 
Indictments From OIG Cases 
128 
Convictions From OIG Cases 
91 
Cases Opened 
78 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 27 
Cases Closed 
203 
SBA Personnel Actions Taken as a Result of Investigation 
Dismissals 
0 
Resignations and Retirements 
0 
Suspensions 
0 
Reprimands 
0 
Agency Legislative and Regulatory Proposals Reviewed 
Legislation, Regulations, Standard Operating Procedures, and Other Issuances Reviewed 
76 
Comments Provided by OIG to Improve Legislation, Regulations, Standard Operating 
Procedures, and Other Issuances 
10 
 
 
 

U.S. Small Business Administration | Office of Inspector General 
28 | Fall 2025 Semiannual Report to Congress 
Appendix B: Full-Year Statistical Highlights, FY 2025 
Summary of OIG Dollar Accomplishments 
Dollar Accomplishments as a Result of Investigations and 
Related Activities 
Total 
Potential Investigative Recoveries and Fines 
$275,085,340 
Other Recoveries (e.g., administrative seizures with 
partner law enforcement agencies/civil settlements/qui 
tam) 
$242,226,268 
Asset Forfeitures Attributed to OIG Investigations 
$14,403,310 
Loans and Contracts Not Approved or Canceled as a Result 
of Investigations 
$1,627,000 
Investigations Subtotal 
$533,341,918 
Dollar Accomplishments as a Result of Audit Activities 
Total 
Disallowed Costs Agreed to by Management 
$3,228,616,762 
Recommendations that Funds Be Put to Better Use 
Agreed to by Management 
0 
Audit Subtotal 
$3,228,616,762 
Total OIG Dollar Accomplishments 
$3,761,958,680 
Efficiency and Effectiveness Activities Related to Audit, Other Reports, and 
Follow-up Activities 
Reports Issued 
25 
Recommendations Issued 
123 
Dollar Value of Costs Questioned 
$3,228,616,764 
Dollar Value of Recommendations that Funds Be Put to Better Use 
0 
Recommendations With Management Decisions 
123 
Recommendations Without Management Decisions 
0 
Collections as a Result of Questioned Costs 
0 
Indictments, Convictions, and Case Actions 
Indictments From OIG Cases 
234 
Convictions From OIG Cases 
221 
Cases Opened 
176 
Cases Closed 
303 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 29 
SBA Personnel Actions Taken as a Result of Investigations 
Dismissals 
0 
Resignations and Retirements 
0 
Suspensions 
0 
Reprimands 
0 
Agency Legislative and Regulatory Proposals Reviewed 
Legislation, Regulations, Standard Operating Procedures, and 
Other Issuances Reviewed 
138 
Comment Memoranda Provided by OIG to Improve Legislation, 
Regulations, Standard Operating Procedures, and Other Issuances 
13 
 
 
 

U.S. Small Business Administration | Office of Inspector General 
30 | Fall 2025 Semiannual Report to Congress 
Appendix C: Reports Issued 
Reports Issued 
Agency Management 
Title 
Report 
Number 
Issue Date 
Questioned 
Costs 
Funds for 
Better Use 
Undetected Vulnerabilities From Personally 
Owned Devices 
25-11 
4/22/2025 
— 
— 
Fiscal Year 2024 Federal Information Security 
Modernization Act 
25-13 
4/29/2025 
— 
— 
Independent Auditors’ Report on SBA’s Fiscal Year 
2024 Compliance with the Payment Integrity 
Information Act of 2019 
25-15 
5/15/2025 
— 
— 
SBA’s Controls Over Cash Contributions and Gifts 
25-22 
8/5/2025 
— 
— 
SBA’s Controls to Address Financial Statements 
Audit Disclaimers and Material Weaknesses 
25-25 
6/29/2025 
— 
— 
Program Subtotal 
5 
— 
— 
— 
Contracting and Counseling Programs 
Title 
Report 
Number 
Issue Date 
Questioned Costs 
Funds for 
Better Use 
New Jersey Small Business Development 
Center’s Compliance With Cooperative 
Agreement Requirements 
25-17 
6/3/2025 
$668,252 
— 
SBA's Oversight of Shuttered Venue 
Operators Grant Recipients 
25-21 
7/22/2025 
$1,409,106,858 
— 
Program Subtotal 
2 
— 
$1,409,775,110 
— 
Credit/Capital Programs 
Title 
Report 
Number 
Issue Date 
Questioned 
Costs 
Funds for 
Better 
Use 
SBA’s Actions to Address Forgiven PPP Loans 
Subsequently Flagged as Potentially Ineligible 
25-12 
4/23/2025 
— 
— 
Eligibility of PPP Loans Exceeding Maximum Size 
Standards 
25-14 
5/1/2025 
$342,722,938 
— 
Program Subtotal 
2 
— 
$342,722,938 
— 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 31 
Disaster Assistance 
Title 
Report 
Number 
Issue Date 
Questioned 
Costs 
Funds for 
Better 
Use 
COVID-19 Economic Injury Disaster Loan 
Servicing Capability 
25-16 
5/29/2025 
— 
— 
Automated Controls Should Ensure Compliance 
With Criteria 
25-18 
6/4/2025 
$93,263,236 
— 
Hurricane Helene Initial Disaster Assistance and 
Recovery Response 
25-19 
6/17/2025 
— 
— 
Hurricane Milton – Initial Disaster Assistance 
and Recovery Response 
25-20 
7/2/2025 
— 
— 
SBA's Collection Efforts on Delinquent COVID-
19 EIDLs 
25-23 
8/12/2025 
— 
— 
SBA’s Processes to Forecast and Request 
Appropriation Dollars for its Disaster Loans 
Program Account 
25-24 
9/25/2025 
— 
— 
Program Subtotal 
6 
— 
$93,263,236 
— 
 
 
 

U.S. Small Business Administration | Office of Inspector General 
32 | Fall 2025 Semiannual Report to Congress 
Appendix D: Reports, Recommendations, and Management 
Decisions 
Reports From Prior Periods With Overdue Management Decisions 
There were no reports from prior periods with overdue management decisions. 
Reports From Prior Periods With Open Recommendations as of 
September 30, 2025 
Report 
Number 
Title 
Date Issued 
Number of Open 
Recommendations 
Aggregate Potential 
Cost Savings 
20-03 
Audit of SBA's Oversight of High-
Risk Lenders 
11/12/2019 
1 
— 
21-08 
SBA’s Use of Vendors Without a 
Contract 
2/3/2021 
2 
$10,800,476 
21-09 
Duplicate Loans Made Under the 
Paycheck Protection Program 
3/15/2021 
1 
— 
21-14 
Audit of SBA’s Oversight of 
Women’s Business Centers’ 
Compliance With Cooperative 
Agreement Financial 
Requirements 
5/4/2021 
5 
$785,961 
22-01 
SBA's Emergency EIDL Grants to 
Sole Proprietors and Independent 
Contractors 
10/7/2021 
1 
$4,500,000,000 
22-07 
SBA’s Oversight of the Grant 
Recipient’s Implementation of the 
CARES Act Resource Partners 
Training Portal 
1/18/2022 
2 
$142,627,740 
22-11 
FY 2021 Federal Information 
Security Modernization Act 
Review 
4/28/2022 
1 
— 
22-19 
COVID-19 and Disaster Assistance 
Information Systems Security 
Controls 
9/27/2022 
6 
— 
22-21 
Paycheck Protection Program 
Eligibility for Nonprofit 
Organizations 
9/26/2022 
1 
$684,000,000 
23-03 
FY 2022 FISMA Review 
12/13/2022 
3 
— 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 33 
23-10 
SBA's Administrative Process to 
Address Potentially Fraudulent 
RRF Awards 
7/5/2023 
1 
$278,570,834 
23-15 
SBA’s Oversight of Restaurant 
Revitalization Fund Recipients 
9/29/2023 
5 
$3,528,709,751 
24-02 
SBA’s Internal Controls to Prevent 
Shuttered Venue Operators 
Grants to Ineligible Applicants 
10/25/2023 
2 
$22,878,968 
24-06 
SBA's Eligibility and Forgiveness 
Review of PPP Loans Made to 
Borrowers With Treasury’s Do Not 
Pay Data Matches 
2/22/2024 
6 
$1,428,399,071 
24-07 
Fiscal Year 2023 Federal 
Information Security 
Modernization Act 
3/7/2024 
6 
— 
24-09 
SBA’s Restaurant Revitalization 
Fund Program Award Practices 
3/26/2024 
5 
$6,465,832,231 
24-10 
SBA’s IT Investment Governance 
Framework 
3/29/2024 
1 
— 
24-16 
SBA’s Fiscal Year 2023 Compliance 
with the Payment Integrity 
Information Act of 2019 
5/15/2024 
6 
— 
24-17 
7(a) Loan Approval for Borrowers 
with Unresolved COVID-19 
Pandemic Loan Compliance Issues 
5/21/2024 
1 
— 
24-20 
SBA’s Guaranty Purchases for 
Paycheck Protection Program 
Loans 
7/9/2024 
7 
— 
24-21 
Improvements Needed in SBA’s 
Shuttered Venue Operators Grant 
Post-Award Review Process 
7/10/2024 
1 
— 
24-23 
SBA’s Oversight of HUBZone 
Program Participants’ Continuing 
Eligibility 
8/15/2024 
2 
— 
24-25 
SBA’s Oversight of the Community 
Navigator Pilot Program 
Performance Navigator Pilot 
Program Performance 
9/24/2024 
3 
— 

U.S. Small Business Administration | Office of Inspector General 
34 | Fall 2025 Semiannual Report to Congress 
25-03 
Approved Disaster Assistance 
Loans Matching COVID-19 EIDLs 
and PPP Loans With Fraud Hold 
Codes 
11/5/2024 
1 
— 
25-04 
SBA’s Oversight of Non-Bank 
Lenders and Third-Party Service 
Providers Associated With PPP 
Loans 
11/13/2024 
6 
— 
25-05 
Oversight of FY 2024 Financial 
Statements Audit 
11/15/2024 
56 
— 
25-06 
COVID-19: Data Sharing Project 
Finds Billions Paid to Same Likely 
Fraudsters Under Both the 
Unemployment Insurance and 
Economic Injury Disaster Loan 
Programs 
12/5/2024 
2 
— 
25-07 
SBA’s Use of Hold Codes for 
Potentially Fraudulent PPP Loans 
Referred by Lenders 
1/16/2025 
5 
— 
Total 
— 
— 
139 
$17,062,605,032 
 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 35 
Significant Recommendations From Prior Reporting Periods Without 
Final Action as of September 30, 2025 
Report 
Number 
Date Issued 
Number 
Recommendation 
Date of 
Management 
Decision 
Final Action 
Target Date 
20-03 
11/12/2019 
2 
Develop and implement a 
comprehensive database to manage 
its oversight of high-risk lenders to 
ensure performance of all planned 
reviews, implementation of risk 
mitigation actions, and identification 
of noncompliant lender and systemic 
material loan deficiencies. 
11/15/2019 
7/15/2025 
21-08 
2/3/2021 
1 
Require responsible personnel to 
execute a contract for foreclosure and 
real estate services to ensure the 
procurement of services are obtained 
and authorized in accordance with the 
Federal Acquisition Regulation 
requirements. 
02/01/2021 
09/06/2024 
21-08 
2/3/2021 
3 
Ratify the over $10.8 million in 
payments in accordance with the FAR 
and 48 C.F.R. § 1.602-3. 
02/02/2023 
09/06/2024 
21-09 
3/15/2021 
1 
Review the OIG identified potential 
duplicate disbursements for eligibility 
and take action to recover any 
improper payments as applicable. 
03/31/2021 
09/30/2025 
21-14 
5/4/2021 
2 
Remedy $523,790 in unsupported 
matching funds, unsupported 
program income, and the resulting 
portion of the federal funds 
reimbursed for the unmet match, and 
$186,537 in unsupported expenses. 
05/04/2021 
03/17/2025 
21-14 
5/4/2021 
3 
Recover $31,215 for improperly 
awarded contracts and $31,424 in 
unallowable or unallocable expenses. 
05/04/2021 
03/17/2025 

U.S. Small Business Administration | Office of Inspector General 
36 | Fall 2025 Semiannual Report to Congress 
21-14 
5/4/2021 
4 
Implement policies and procedures 
for conducting thorough financial 
compliance reviews and coordinate 
with the Office of Field Operations to 
train field office personnel responsible 
for semiannual site visits. 
05/04/2021 
01/21/2025 
21-14 
5/4/2021 
5 
Establish policies holding program 
officials accountable for promptly 
following up on financial examination 
results and enforcing cooperative 
agreement requirements. 
05/04/2021 
3/17/2025 
21-14 
5/4/2021 
7 
Review expenses for the $28,089 
reallocation of budget expenses we 
detailed in this report to ensure these 
costs are allowable and document the 
rationale for the reallocation or 
recover costs that are unallowable. 
05/04/2021 
03/21/2025 
22-01 
10/7/2021 
1 
Review the applications of sole 
proprietors and independent 
contractors that included numbers of 
employees but no Employer 
Identification Number; and remedy 
the $3.5 billion disbursed to sole 
proprietors and $1 billion disbursed to 
independent contractors that 
exceeded the amount allowed by 
SBA’s policy. 
08/22/2022 
09/30/2025 
22-11 
4/28/2022 
2 
Ensure the continuity of operations 
plan is tested annually, as required by 
Federal Continuity Directive 1. 
04/29/2022 
06/30/2025 
22-19 
9/27/2022 
1 
Ensure the existing SBA System 
Development Methodology is 
updated to include supply chain risk-
management practices as required by 
OMB Circular A-130 and high-value 
asset system designation guidance. 
Also, ensure high-value asset system 
risks are incorporated into the 
enterprise risk management 
framework, as recommended by OMB 
M-19-03 and SBA SOP 90 47 6. 
11/08/2022 
07/31/2025 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 37 
22-19 
9/27/2022 
2 
Communicate and enforce the SBA 
System Development Methodology in 
which a traceability matrix is used to 
ensure that system requirements can 
be tested and demonstrated in the 
operational system. Ensure all 
requirements are aligned with the 
contractual acceptance criteria. 
11/08/2022 
7/31/2025 
22-19 
9/27/2022 
5 
In conjunction with the Enterprise 
Risk Management Board, implement 
enterprise-wide privacy risk mitigation 
practices that can be assimilated into 
new and existing system program 
designs. 
11/08/2022 
08/01/2025 
22-19 
9/27/2022 
7 
Transition information systems and 
common controls to an ongoing 
authorization process (when eligible 
for such a process) with the formal 
approval of the respective authorizing 
officials or reauthorize information 
systems and common controls as 
needed, on a time or event-driven 
basis in accordance with agency risk 
tolerance, as required by OMB 
Circular No. A-130 and SOP 90 47 6. 
11/10/2022 
06/30/2025 
22-19 
9/27/2022 
8 
Review and update POA&Ms at least 
quarterly as required by SOP 90 47 6. 
11/09/2022 
06/30/2025 
22-19 
9/27/2022 
10 
Implement an automated process to 
document and monitor system 
changes as recommended by NIST SP 
800-53 Rev. 5. 
11/09/2022 
06/30/2025 
22-21 
9/26/2022 
1 
Review the 179 PPP loans, totaling 
approximately $684 million, for 
compliance with affiliation and size 
standards to ensure eligibility 
requirements were met and seek 
remedy or repayment for all loans 
deemed ineligible. 
06/03/2024 
09/30/2025 

U.S. Small Business Administration | Office of Inspector General 
38 | Fall 2025 Semiannual Report to Congress 
23-03 
12/13/2022 
2 
Implement a process to ensure SBA 
reviews its external service providers 
for supply chain risks and ensure all 
assessments of supply chain risks are 
documented as outlined in NIST 800-
53. 
12/16/2022 
02/14/2025 
23-03 
12/13/2022 
3 
Communicate and reinforce to 
program offices the requirement to 
review and remove system and user 
accounts in accordance with SOP 90 
47 6. 
12/16/2022 
04/30/2025 
23-03 
12/13/2022 
5 
Develop, document, and implement a 
process that requires management 
review of information security data 
and report information security 
threats. 
12/16/2022 
04/30/2025 
23-10 
7/5/2023 
1 
Prioritize and complete the review of 
the 2,172 awards that were flagged by 
the point-of-sale partner as having 
unsupported gross sales and take 
appropriate administrative actions to 
recover improper payments, which 
includes 110 awards that were 
suspected of fraud. 
08/15/2023 
12/27/2024 
23-15 
9/29/2023 
1 
Follow-up with recipients who did not 
submit their final annual report as 
required by April 30, 2023 and take 
action to recover funds. 
10/05/2023 
10/07/2024 
23-15 
9/29/2023 
2 
Review the 210 RRF award recipients 
currently marked in the PPP loan data 
as potentially fraudulent or ineligible 
that were not selected for post award 
review. 
10/05/2023 
04/30/2025 
23-15 
9/29/2023 
3 
Extend the record retention period 
and notify all RRF award recipients in 
writing in accordance with 2 CFR 
200.334. 
05/06/2025 
4/30/2025 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 39 
23-15 
9/29/2023 
5 
Take immediate administrative 
actions to recover improper payments 
from the 5 hotels and 18 recipients 
found to be ineligible, for a total of 23 
ineligible award recipients identified 
totaling $39 million. 
10/05/2023 
10/07/2024 
23-15 
9/29/2023 
6 
Establish and implement procedures 
to recover unused funds or recover 
funds paid to ineligible recipients and 
prioritize this effort. 
10/05/2023 
10/07/2024 
24-02 
10/25/2023 
1 
Reevaluate eligibility for the 47 
applicants we questioned and recover 
grant funds from the ineligible 
applicants. 
01/31/2024 
10/15/2025 
24-02 
10/25/2023 
2 
Implement additional controls to 
ensure that, during the monitoring, 
auditing, and compliance phases, 
awards are carefully screened to 
verify eligibility and to recover grant 
funds from ineligible entities. 
07/16/2024 
10/15/2025 
24-06 
2/22/2024 
1 
Review the 1,799 PPP loans totaling 
over $89 million, that matched a DNP 
data source, to ensure eligibility 
requirements were met and seek 
remedy or repayment of all loans 
deemed ineligible. 
03/27/2024 
09/30/2025 
24-06 
2/22/2024 
2 
Review the 49 PPP loans totaling 
approximately $3.5 million and the 43 
loans totaling approximately $7.2 
million to ensure borrowers met 
eligibility requirements and seek 
remedy or repayment of loans 
deemed ineligible. 
09/30/2024 
08/29/2025 

U.S. Small Business Administration | Office of Inspector General 
40 | Fall 2025 Semiannual Report to Congress 
24-06 
2/22/2024 
3 
Conduct a review of PPP loans, in 
which the DNP hold codes were 
cleared to 1) identify those cleared 
using pre-decisional memos and 2) 
those cleared without sufficient 
evidence to support the reviewer’s 
loan decision and seek remedy or 
repayment of loans deemed ineligible. 
10/03/2024 
09/30/2025 
24-06 
2/22/2024 
4 
Develop and implement controls, such 
as supervisory reviews, to ensure PPP 
loans and loans for future stimulus 
programs with DNP matches receive 
manual reviews, as required. The 
reviews should ensure that pre-
decisional memos are not used to 
clear DNP hold codes and that the 
loan files contain relevant and 
appropriate documentary evidence to 
support the loan review decisions. 
10/03/2024 
09/30/2025 
24-06 
2/22/2024 
6 
Review the 59,893 PPP applications 
that matched a DNP data source to 
ensure borrowers met eligibility 
requirements and seek remedy or 
repayment of loans deemed ineligible. 
03/08/2024 
09/30/2025 
24-06 
2/22/2024 
7 
Review the additional 47,940 PPP 
loans totaling over $1.7 billion, 
identified through the DNP data 
match, to ensure borrowers met the 
eligibility requirements and seek 
remedy or repayment of loans 
deemed ineligible. 
03/27/2024 
09/30/2025 
24-07 
3/7/2024 
5 
Develop a strategy to ensure that 
products, system components, 
systems, and services of external 
providers are consistent with the 
organization’s cybersecurity and 
supply chain requirements. 
03/27/2024 
2/14/2025 
24-07 
3/7/2024 
6 
Define timeframe and remediation 
requirements for baseline and 
configuration weaknesses. 
03/26/2024 
12/31/2024 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 41 
24-07 
3/7/2024 
7 
Properly update and remediate 
vulnerabilities and configuration 
weaknesses throughout the SBA 
environment. 
03/27/2024 
04/30/2025 
24-07 
3/7/2024 
9 
Ensure implementation procedures 
for data loss prevention are updated 
at least on a biannual basis to reflect 
new processes and new 
requirements. 
03/27/2024 
12/31/2024 
24-07 
3/7/2024 
10 
Update existing procedures that 
identify the roles of individuals with 
significant IT responsibilities who 
require role-based training and 
ensure such training is provided and 
tracked. 
03/27/2024 
04/30/2025 
24-07 
3/7/2024 
11 
Provide training to individuals with 
contingency planning roles and 
responsibilities. 
03/27/2024 
04/30/2025 
24-09 
3/26/2024 
1 
Develop a plan for future similar 
programs to leverage applicable 
existing SBA data sources when 
determining eligibility and monitoring 
awards. The plan should include 
requirements to evaluate 
effectiveness of the use of the data as 
controls to reduce risk of improper 
payments. 
4/30/2024 
03/31/2025 
24-09 
3/26/2024 
2 
Validate historical sales for 47,565 
awards designated or treated as Tier 2 
that failed or did not receive IRS 
validation. Recover any excess funds 
paid that are attributable to 
unverified historical sales data. 
— 
— 
24-09 
3/26/2024 
3 
Review the 3,443 applicants awarded 
funds totaling $376,583,100 that self-
certified as a brewery or inn, to 
determine if they met the 33 percent 
onsite sales eligibility requirement 
and recover any funds from applicants 
that did not meet the requirement. 
— 
— 

U.S. Small Business Administration | Office of Inspector General 
42 | Fall 2025 Semiannual Report to Congress 
24-09 
3/26/2024 
4 
In accordance with Public Law 117-2, 
§ 5003(a)(4)(A)(i) take immediate 
action to review and recover 
improper payments from the 14 
affiliated business groups disclosed by 
RRF applicants for a total of 
$55,067,326 in excess funds paid, 
beyond the $10 million limit per 
affiliated group. 
4/30/2024 
05/30/2025 
24-09 
3/26/2024 
5 
Review the 16,345 applicants that 
disclosed having an affiliated business 
to determine if the amounts 
collectively awarded to the applicant 
and affiliates exceeded the $10 
million maximum and recover any 
excess awards. 
— 
— 
24-10 
3/29/2024 
2 
Ensure the architecture review board 
reviews new investments to confirm 
compatibility with agency systems and 
ensure the Business Technology 
Investment Council approves new 
investments prior to purchase, as 
required by SOPs 90 52 1 and 90 44. 
06/14/2024 
08/31/2025 
24-16 
5/15/2024 
3 
Enhance existing procedures using the 
framework in the Government 
Accountability Office’s Green Book to 
design and implement robust internal 
and quality control processes to 
ensure complete and accurate 
reporting of annual improper 
payment results and formalized risk 
assessment processes to ensure all 
programs and activities are 
considered sufficiently to meet PIIA 
reporting objectives. 
06/14/2024 
09/30/2025 
24-16 
5/15/2024 
4 
Design and implement enforceable 
actions and controls to hold lenders 
accountable for not providing all 
documentation requested for loan 
samples in a timely manner. 
06/14/2024 
05/15/2025 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 43 
24-16 
5/15/2024 
5 
Formally document and implement 
additional preventative and 
monitoring controls to determine the 
eligibility of loans prior to loan 
approval and payments and loan 
guaranty purchases. 
06/14/2024 
05/15/2025 
24-16 
5/15/2024 
7 
Exercise effective management 
review controls over the statistician’s 
work product by verifying that the 
documentation of the sampling and 
estimation methodology plans 
comprehensively outlines the details 
of the implemented sampling and 
extrapolation methodology, while 
maintaining statistical validity. 
06/14/2024 
05/15/2025 
24-16 
5/15/2024 
9 
Design and document adequate 
review procedures to ensure that the 
results of the sample meet PIIA 
objectives. 
6/12/2024 
05/15/2025 
24-16 
5/15/2024 
10 
Design and implement a formal 
review process to ensure corrective 
actions plans developed, 
implemented, and published are 
adequately addressing the true root 
causes of improper and unknown 
payments. 
06/14/2024 
05/15/2025 
24-17 
5/21/2024 
1 
Review and appropriately resolve hold 
codes related to the 5,044 7(a) loans 
to determine impact on 7(a) eligibility 
and seek remedy or repayment of all 
7(a) loans deemed ineligible. 
08/08/2024 
06/28/2025 
24-20 
7/9/2024 
1 
Review charged-off PPP loans to 
ensure all eligible loans are reported 
to commercial credit reporting 
agencies, as required. 
07/12/2024 
08/29/2025 

U.S. Small Business Administration | Office of Inspector General 
44 | Fall 2025 Semiannual Report to Congress 
24-20 
7/9/2024 
2 
Require personnel to conduct periodic 
monitoring and reviews of SBA’s 
automated processes for PPP and 
future stimulus loan programs to 
ensure all eligible loans are reported 
to commercial credit reporting 
agencies, as required. 
07/12/2024 
08/29/2025 
24-20 
7/9/2024 
3 
Identify the credit reporting agencies 
to whom SBA must report current and 
delinquent loans for PPP and future 
stimulus loan programs. 
07/12/2024 
05/30/2025 
24-20 
7/9/2024 
4 
Review charged-off PPP loans to 
ensure that all eligible loans are 
referred to Treasury, as required. 
07/12/2024 
08/29/2025 
24-20 
7/9/2024 
5 
Require personnel to conduct periodic 
reviews of its automated Treasury 
referral process for PPP and future 
stimulus loan programs to ensure all 
eligible loans are referred to Treasury, 
as required. 
07/12/2024 
08/29/2025 
24-20 
7/29/2024 
6 
Conduct lender reviews to ensure 
lenders complied with their 
communication, servicing, and debt 
collection activity requirements. If 
not, require the lender to bring the 
loan into compliance or seek recovery 
of the guaranty paid by SBA as 
appropriate. 
09/27/2024 
09/30/2025 
24-20 
7/9/2024 
7 
Require lenders to submit evidence of 
communication, servicing, and debt 
collection activities with the borrower 
prior to guaranty purchase for PPP 
and future similar programs to foster 
and maintain program integrity. 
09/26/2024 
09/30/2025 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 45 
24-23 
8/15/2024 
1 
Revise regulations to require 
documents that can be verified to 
ensure firms complied with 13 CFR § 
126.200(d)(3), that a legacy employee 
resided in a HUBZone for at least 180 
days following the most recent 
certification (or recertification). 
08/20/2024 
12/30/2025 
24-23 
8/15/2024 
3 
Improve the HCTS system notification 
module to ensure recertification 
notifications are sent timely and 
consistently to all HUBZone firms. 
08/20/2024 
12/01/2025 
24-25 
9/24/2024 
1 
Should the Navigator program 
continue, establish performance 
targets to assess recipient’s progress 
towards assisting underserved small 
business owners and entrepreneurs. 
12/20/2024 
01/27/2025 
24-25 
9/24/2024 
2 
Should the Navigator program 
continue, enhance guidance for grant 
recipients to use acceptable methods 
to collect more complete client 
information reported to program 
officials 
12/20/2024 
02/28/2025 
24-25 
9/24/2024 
4 
Establish and implement a risk-based 
process to compare performance 
results for Navigator program grant 
recipients and partner organizations 
that are also SBA resource partners to 
ensure performance is separate and 
discrete. 
— 
— 
25-03 
11/5/2024 
1 
Review the 187 loans that matched to 
a related COVID-19 EIDL or PPP loan 
with a fraud hold code for legitimacy 
and eligibility. If any of the 187 loans 
are found to be illegitimate, ineligible, 
or fraudulent, take appropriate action 
to 1) prevent disbursement of funds, 
2) recover the funds, and 3) refer 
potentially fraudulent loans to OIG. 
10/29/2024 
10/24/2025 

U.S. Small Business Administration | Office of Inspector General 
46 | Fall 2025 Semiannual Report to Congress 
25-04 
11/13/2024 
1 
Ensure that future application review 
processes for non-bank PPP lenders 
(including fintechs) requesting to 
participate in traditional SBA loan 
programs include conducting reviews 
of the lender’s compliance with PPP 
requirements. 
4/8/2025 
6/30/2025 
25-04 
11/13/2024 
2 
Enhance existing risk-based oversight 
plans to ensure adequate oversight of 
high-risk non-bank lenders, including 
fintechs. 
4/8/2025 
6/30/2025 
25-04 
11/13/2024 
3 
Ensure internal controls designed to 
restrict access to only lender service 
providers with accepted agreements 
to submit loan applications remain in 
place to promote program integrity in 
all lending programs. 
4/8/2025 
4/30/2025 
25-04 
11/13/2024 
4 
Improve monitoring of lender/service 
provider relationships to better 
determine the extent of services 
being performed by service providers 
to ensure compliance with SBA 
requirements. 
4/8/2025 
4/30/2025 
25-04 
11/13/2024 
5 
Reinforce existing guidance to lenders 
on reporting lender service provider 
relationships to SBA to ensure only 
accepted lender service providers are 
participating and benefiting from SBA 
programs. 
4/8/2025 
6/30/2025 
25-04 
11/13/2024 
6 
Update guidance on lender 
requirements for managing risks 
associated with lender service 
provider relationships to align with 
2023 Interagency Guidance. 
— 
— 
25-06 
12/5/2024 
1 
Evaluate its authority to share data 
and develop fraud prevention 
resources and controls with other 
federal entities, including SBA, that 
include data sharing mechanisms to 
detect and mitigate fraud. 
12/4/2024 
9/25/2026 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 47 
25-06 
12/5/2024 
2 
Collaborate with SBA to conduct a 
joint study to assess and identify the 
UI claim data elements that should be 
shared for data matching with 
disaster program data elements for 
the purpose of detecting potentially 
fraudulent activities under both the UI 
and SBA disaster assistance programs. 
12/4/2024 
9/24/2027 
25-07 
1/16/2025 
1 
Immediately flag with a hold code 50 
the 45,761 lender-referred loans. 
— 
— 
25-07 
1/16/2025 
2 
Review 17,269 of the 45,761 lender-
referred loans, totaling $1.2 billion, 
suspected of fraud or illegal activity 
that have been forgiven and any other 
such loans to ensure borrowers met 
eligibility requirements. If not, seek 
recovery of funds as appropriate. 
— 
— 
25-07 
1/16/2025 
3 
Immediately flag with a hold code 50 
the 6,944 lender-referred loans, 
totaling $365 million, suspected of 
fraud or illegal activity, but not 
captured in OCRM’s summary 
— 
— 
25-07 
1/16/2025 
4 
Review 5,130 of the 6,944 lender-
referred loans, totaling $139.1 million, 
suspected of fraud or illegal activity 
that have been forgiven and any other 
such loans, to ensure borrowers met 
eligibility requirements or seek 
recovery of funds as appropriate. 
— 
— 
25-07 
1/16/2025 
5 
Establish sufficient procedures, such 
as supervisory reviews and a 
reconciliation process, to ensure all 
lender-referred loans suspected of 
fraud or illegal activity are captured in 
OCRM’s summary workbook. 
1/22/2025 
8/31/2025 

U.S. Small Business Administration | Office of Inspector General 
48 | Fall 2025 Semiannual Report to Congress 
Significant Recommendations From This Reporting Period 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-11 
4/22/2025 
Undetected 
Vulnerabilities From 
Personally Owned 
Devices 
1 
Ensure personally owned devices 
use multifactor authentication as 
required by SOP 90 47 6. 
25-11 
4/22/2025 
Undetected 
Vulnerabilities From 
Personally Owned 
Devices 
2 
Ensure all personal devices 
connecting remotely to SBA’s 
network have updated anti-
malware software running with 
the latest signature files, a 
firewall installed and running, 
and all security patches installed 
as required by SOP 90 47 6. 
25-11 
4/22/2025 
Undetected 
Vulnerabilities From 
Personally Owned 
Devices 
3 
Ensure that appropriate security, 
including encryption, application 
controls, password usage, 
remote locking, remote wiping, 
and operating system protection 
can be enforced for mobile 
devices as required by SOP 90 47 
6. 
25-11 
4/22/2025 
Undetected 
Vulnerabilities From 
Personally Owned 
Devices 
4 
Restrict users from connecting to 
SBA systems from international 
IP addresses as required by SOP 
90 47 6. 
25-11 
4/22/2025 
Undetected 
Vulnerabilities From 
Personally Owned 
Devices 
5 
Implement or enhance current 
real-time continuous monitoring 
of mobile phone and personal 
computer data with rules-based 
automated response and 
analysis capabilities as required 
by OMB M-22-01. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 49 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-12 
4/23/2025 
SBA's Actions to 
Address Forgiven PPP 
Loans Subsequently 
Flagged as Potentially 
Ineligible 
1 
Complete reviews for the 37,938 
loans, totaling approximately 
$4.6 billion, which includes the 
26,234 loans, totaling 
approximately $454 million 
valued at $25,000 or less and 
subsequently flagged with hold 
code 70 to ensure borrowers 
met eligibility requirements and 
seek recovery of all ineligible 
loans. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
1 
Complete the implementation of 
a software tool to help ensure a 
complete and accurate inventory 
of software and hardware assets 
that includes the detailed 
information necessary for 
tracking, reporting, and 
approval. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
2 
Perform assessments and 
analysis of contractor systems to 
ascertain compliance with SBA’s 
security policies and federal 
requirements. This includes 
development of procedures to 
obtain sufficient assurance 
through inspection of 
vulnerability assessment results, 
audits, test results, or other 
forms of evaluation to ensure 
the security and supply chain 
controls of systems or services 
provided is captured. 

U.S. Small Business Administration | Office of Inspector General 
50 | Fall 2025 Semiannual Report to Congress 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
3 
Establish policies and procedures 
for detecting counterfeit 
components and devices, 
including what risks to consider 
and what controls may be 
appropriate to mitigate those 
risks in SBA’s supply chain. This 
includes the design, 
development, and 
implementation of counterfeit 
training requirements and 
configuration control over 
system components awaiting 
service or repair and serviced or 
repaired components awaiting 
return to service. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
4 
Properly update and remediate 
configuration management 
vulnerabilities and weaknesses 
as specified in SBA’s procedures. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
5 
Update incident response 
documentation procedures, 
accounting for all necessary 
information to be included in the 
SBA cyber incident form. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
6 
Update or establish procedures 
to ensure that all employees and 
contractors receive security 
awareness training in a timely 
manner. 
25-13 
4/29/2025 
Fiscal Year 2024 Federal 
Information Security 
Modernization Act 
7 
Develop and implement a 
process to verify remedial action 
has occurred if an individual fails 
to complete the required 
training within the designated 
timeframe. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 51 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-14 
5/1/2025 
Eligibility of PPP Loans 
Exceeding Maximum 
Size Standards 
1 
Obtain the documentation 
necessary to fully assess the 
borrower's size standard 
eligibility for the 29 loans, 
totaling $196.5 million, that 
were cleared solely by 
memoranda unrelated to size 
standard eligibility requirements 
to ensure only eligible borrowers 
received funds and, if not, seek 
repayment of forgiveness 
amounts on all loans deemed 
ineligible. 
25-14 
5/1/2025 
Eligibility of PPP Loans 
Exceeding Maximum 
Size Standards 
2 
Obtain the documentation 
necessary to fully assess whether 
size standard eligibility 
requirements were met for the 
19 loans, totaling $146.2 million 
and, if not, seek repayment of 
forgiveness amounts for all loans 
deemed ineligible. 
25-16 
5/29/2025 
COVID-19 Economic 
Injury Disaster Loan 
Servicing Capability 
1 
Finalize and approve procedures 
and standards included in the 
Draft COVID EIDL Servicing 
Manual. 
25-16 
5/29/2025 
COVID-19 Economic 
Injury Disaster Loan 
Servicing Capability 
2 
Publish and communicate 
written overall CESC 
performance goals for effective 
monitoring of its operations in 
coordination with SBA’s Office of 
Financial Program Operations. 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
1 
Reinforce the New Jersey Small 
Business Development Center’s 
adherence to requirements that 
costs spent on consultants are 
reasonable and supportable as 
prescribed in 2 CFR § 200.459. 

U.S. Small Business Administration | Office of Inspector General 
52 | Fall 2025 Semiannual Report to Congress 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
4 
Instruct the New Jersey SBDC to 
submit an updated budget that 
reflects the $420,700 impact of 
the service center closure to 
evaluate whether funds are 
allowable in accordance with 2 
CFR 200.308(c)(5)(7). 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
6 
Instruct the New Jersey Small 
Business Development Center to 
reconcile $75,247 of program 
income across the network to 
ensure generated income and 
expenses are accounted for and 
reported accurately in 
accordance with 13 CFR § 
130.480. 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
7 
Enforce the requirement for the 
New Jersey Small Business 
Development Center to timely 
adhere to export certification 
requirements and regularly 
report on its compliance status 
to SBA in accordance with Notice 
of Funding Section 5.1.4.4. 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements  
8 
Ensure the New Jersey Small 
Business Development Center is 
maintaining sufficient 
accessibility to its facilities and 
appropriate staff levels and 
notifying clients of service 
centers’ hours of operation in 
accordance with 15 USC 
648(c)(2). 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 53 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
9 
Ensure the New Jersey Small 
Business Development Center 
implements a process to ensure 
all personnel funded by federal 
grant funds are notified of their 
whistleblower protection rights 
in accordance with 41 U.S.C 
4712. 
25-17 
6/3/2025 
New Jersey SBDC's 
Compliance With 
Cooperative Agreement 
Requirements 
10 
Ensure the New Jersey Small 
Business Development Center 
relates financial data and 
program accomplishments 
toward meeting the 
performance goals for the entire 
performance period as 2 CFR 
200.329(b) requires. 
25-18 
6/4/2025 
Automated Controls 
Should Ensure 
Compliance With 
Criteria 
1 
Review the 17,568 loans and 
advances identified with 
business establishment dates 
after January 31, 2020 to 
determine eligibility and seek 
recovery of funds from ineligible 
recipients. 
25-18 
6/4/2025 
Automated Controls 
Should Ensure 
Compliance With 
Criteria 
2 
Assess the automated controls 
within the agency’s new lending 
platform, the Unified Lending 
Platform, to ensure they align 
with clearly defined disaster 
assistance criteria. 
25-19 
6/17/2025 
Hurricane Helene - 
Initial Disaster 
Assistance and 
Recovery Response 
1 
Review outreach staffing 
assignments and make 
appropriate changes to ensure 
there is adequate coverage 
during future disaster response 
efforts. 

U.S. Small Business Administration | Office of Inspector General 
54 | Fall 2025 Semiannual Report to Congress 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-19 
6/17/2025 
Hurricane Helene - 
Initial Disaster 
Assistance and 
Recovery Response 
2 
Immediately conduct outreach 
efforts in those counties in North 
Carolina and South Carolina 
where the deadline to submit 
loan applications has not 
elapsed. 
25-19 
6/17/2025 
Hurricane Helene - 
Initial Disaster 
Assistance and 
Recovery Response 
3 
Perform a root cause analysis to 
determine the basis of 
insufficient outreach efforts in 
North Carolina and South 
Carolina and implement 
appropriate changes to ensure 
maximum awareness of available 
assistance to disaster survivors 
that accounts for rural areas. 
25-20 
7/2/2025 
Hurricane Milton – 
Initial Disaster 
Assistance and 
Recovery Response 
1 
Review current outreach 
strategies, including staffing 
assignments, and make 
appropriate changes to optimize 
resources, ensuring maximum 
awareness of available assistance 
to disaster survivors. 
25-20 
7/2/2025 
Hurricane Milton – 
Initial Disaster 
Assistance and 
Recovery Response 
2 
Implement processes to gather 
feedback from applicants that 
would assist the agency in 
monitoring the effectiveness of 
its outreach methods. 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
1 
Establish an appeals process and 
promptly finalize recovery 
procedures to include updating 
the demand letter to provide 
sufficient recovery and appeals 
process guidance to grant 
recipients. 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
2 
Take immediate action to review 
the 380 recipients who program 
officials identified as having a 
potential improper payment and 
recover funds. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 55 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
3 
Ensure program officials enforce 
the established tier-based 
process timeline for the 438 
recipients who have not 
responded to SBA’s information 
requests. 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
4 
Follow-up with 347 recipients 
who did not submit their 
required documents to initiate 
closeout and take action to 
recover funds, where necessary. 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
5 
Establish and implement 
timeframes for each closeout 
activity. 
25-21 
7/22/2025 
SBA’s Oversight of 
Shuttered Venue 
Operators Grant 
Recipients 
6 
Report on the limitations of 
survey data used to calculate the 
percentage of recipients that 
continued or reopened 
operations in SBA’s next update 
of the Congressional Budget 
Justification and Annual 
Performance Report. 
25-23 
8/12/2025 
SBA's Collection Efforts 
on Delinquent COVID-
19 EIDLs 
1 
Conduct a study to establish 
minimum loan thresholds for 
performing site visits, implement 
policies and procedures based 
on the results of that study, and 
perform site visits to help 
facilitate appropriate liquidation 
of collateral on defaulted COVID-
19 EIDLs in an effort to maximize 
collections. 
25-23 
8/12/2025 
SBA's Collection Efforts 
on Delinquent COVID-
19 EIDLs 
2 
Verify all delinquent COVID-19 
EIDL obligors are reported to 
credit bureaus in a timely 
manner. 

U.S. Small Business Administration | Office of Inspector General 
56 | Fall 2025 Semiannual Report to Congress 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-23 
8/12/2025 
SBA's Collection Efforts 
on Delinquent COVID-
19 EIDLs 
3 
Confer with the DOJ to establish 
a reasonable standard for 
referral of delinquent COVID-19 
EIDLs to the DOJ for litigation. 
25-24 
9/25/2025 
SBA’s Processes to 
Forecast and Request 
Appropriation Dollars 
for Its Disaster Loans 
Program Account 
1 
Ensure that historical factors 
such as changes in the subsidy 
rate, frequency of major 
disasters, and total dollar 
amount of loan approvals from 
prior years are taken into 
consideration when developing 
the annual budget request for 
the disaster loan program. 
25-24 
9/25/2025 
SBA’s Processes to 
Forecast and Request 
Appropriation Dollars 
for Its Disaster Loans 
Program Account 
2 
Ensure monthly disaster reports 
comply with all the requirements 
of 15 U.S.C. § 636k(a). 
25-24 
9/25/2025 
SBA’s Processes to 
Forecast and Request 
Appropriation Dollars 
for Its Disaster Loans 
Program Account 
3 
Enhance monthly disaster 
reports to include 1) information 
that indicates whether sufficient 
funds are available or if 
supplemental funds are needed 
and 2) a narrative with each data 
table that explains how to read 
and interpret the monthly 
disaster reports. 
25-24 
9/25/2025 
SBA’s Processes to 
Forecast and Request 
Appropriation Dollars 
for Its Disaster Loans 
Program Account 
4 
Ensure written notification of the 
need for supplemental funds for 
the disaster loan program is 
submitted to the appropriate 
congressional committees as 
soon as SBA anticipates a 
funding shortfall, in accordance 
with 15 U.S.C. § 636k(d). 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 57 
Report 
Number 
Date Issued 
Title 
Recommendati
on Number 
Recommendation 
25-25 
9/29/2025 
SBA’s Controls to 
Address Financial 
Statements Audit 
Disclaimers and 
Material Weaknesses 
1 
Designate a senior executive to 
lead the effort to receive a clean 
audit opinion by granting 
agencywide authority to issue 
directives, monitor compliance, 
and enforce remediation 
priorities across all program 
offices. 
25-25 
9/29/2025 
SBA’s Controls to 
Address Financial 
Statements Audit 
Disclaimers and 
Material Weaknesses 
2 
Leverage best practices to 
implement a plan for using 
consistent, frequent 
communication to ensure all 
agency personnel are made 
aware of the agencywide 
commitment to obtain an 
unmodified audit opinion. 
25-25 
9/29/2025 
SBA’s Controls to 
Address Financial 
Statements Audit 
Disclaimers and 
Material Weaknesses 
3 
Integrate the agencywide goal of 
remediation the financial 
statements into SBA’s strategic 
plan and set specific, measurable 
targets in the agency’s annual 
performance plan. 
25-25 
9/29/2025 
SBA’s Controls to 
Address Financial 
Statements Audit 
Disclaimers and 
Material Weaknesses 
4 
Implement a process to conduct 
data-driven reviews regularly 
using defined audit remediation 
goals to align program leaders’ 
personal performance plans with 
outcome-based remediation 
goals to hold leaders 
accountable for improving 
program data quality, in 
accordance with OMB Circular A-
11, Part 6. 
Significant Management Decisions With Which OIG Disagrees 
There were no significant management decisions with which OIG disagrees. 
Significant Revised Management Decisions 
There were no significant revised management decisions during this reporting period. 

U.S. Small Business Administration | Office of Inspector General 
58 | Fall 2025 Semiannual Report to Congress 
Federal Financial Management Improvement Act of 1996 
Our independent auditors, KPMG, reported in the 2024 financial statements audit that 
management did not establish and maintain financial management systems that substantially 
comply with Federal Financial Management Improvement Act of 1996 requirements. These areas 
related to control deficiencies over transactions arising from the implementation of the 
Coronavirus Aid, Relief, and Economic Security (CARES) Act and related legislation. The auditors 
found financial reporting controls do not ensure compliance objectives are met, and do not ensure 
budgetary resources are safeguarded against waste, loss, and misuse. 
Specifically, management was unable to provide evidence that the accounting treatment and 
financial reporting of the recovery of funds related to the Restaurant Revitalization Fund, 
Shuttered Venue Operators Grant, COVID-19 EIDL, and PPP programs were in accordance with U.S. 
generally accepted accounting principles. 
In FY 2025, management finalized an accounting treatments position paper for direct loans and 
loan guarantees to move towards compliance with the Federal Financial Management 
Improvement Act of 1996. Our independent auditors are considering management’s position 
paper as part of the FY 2025 financial statement audit. 
Substantial non-compliance with the Federal Financial Management Act increases the risk that 
transactions are incorrectly recorded in the general ledger and that balances in the consolidated 
financial statements are not accurate. 
Federal Managers Financial Integrity Act of 1982 
OIG’s independent auditors reported in the 2024 financial statements audit that management 
performed an internal control assessment as required under the Federal Managers Financial 
Integrity Act of 1982. However, management’s assessment did not substantially comply with the 
Act and the related Office of Management and Budget (OMB) Circular No. A-123 requirements due 
to the urgent need to implement the provisions of the CARES Act and related legislation as quickly 
and efficiently as possible, and other inherent challenges faced in implementing and expanding 
programs. 
In March 2025, SBA separated all members of its internal controls division team, which was 
responsible for assessing internal controls throughout the agency. Our independent auditors will 
assess this as part of the FY 2025 financial statement audit. Substantially not complying with the 
Federal Managers Financial Act and other related OMB Circular No. A-123 requirements may lead 
to not identifying the appropriate risks and key controls and not detecting internal control or 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 59 
compliance deficiencies. The risks of not detecting and correcting control deficiencies could result 
in misstatements to the consolidated financial statements. 
Instances of Interference 
There were no attempts by SBA officials to interfere with OIG independence during this reporting 
period. 
 
 

U.S. Small Business Administration | Office of Inspector General 
60 | Fall 2025 Semiannual Report to Congress 
Appendix E: Investigations Reporting Statistics 
Investigative Reports Issued 
Report Type 
Number of Reports 
Report of Investigation 
224 
Preliminary Case Closing Reports of Investigation 
1 
Total 
225 
Investigations Referred for Prosecution 
Referred to 
Number of Investigations 
Department of Justice 
52 
State Attorney 
0 
Local Attorney 
0 
Total 
52 
Pandemic-Related Investigative Statistics 
SBA OIG 
Investigations 
Indict/Complaint 
Arrests 
Convictions 
PPP/EIDL/SV/RFF* 
65 
125 
97 
89 
Investment Fraud 
11 
3 
1 
2 
Total 
76 
128 
98 
91 
*PPP is the Paycheck Protection Program. EIDL is the Economic Injury Disaster Loan. SV is Shuttered Venue Operators Grant. RFF is 
the Restaurant Revitalization Fund. 
Whistleblower Retaliation Cases 
There were two OIG investigations involving whistleblower retaliation during the reporting period. 
Investigations Involving a Senior Government Employee in Which 
Misconduct Was Substantiated 
There were no OIG investigations where misconduct was substantiated that involved a senior 
government employee during this reporting period. 
Investigations Involving a Senior Government Employee That Are Closed 
and Not Disclosed to the Public 
There were no OIG investigations that are closed and not disclosed to the public involving a senior 
government employee during this reporting period. 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 61 
Appendix F: Legal Actions Summary 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
NY 
BL 
FBI 
Subject submitted over 100 fraudulent 
PPP loan applications, containing false 
representations totaling over  
$13 million. 
Subject was sentenced 
to 18 months 
incarceration and 3 
years of supervised 
release and ordered to 
pay $550,000 in 
restitution. 
CA 
DL 
BL 
FBI, IRS CI 
Subject defrauded SBA and lenders for 
over $12 million through the EIDL 
program. The subject misused proceeds 
for gambling, vacations, and illegal 
narcotics. 
Subject was sentenced 
to 48 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$535,041. 
VA 
DL 
BL 
USSS, IRS CI, 
FDIC OIG, 
USPIS 
Subject submitted false and fraudulent 
PPP applications in a $6.1 million 
investment fraud scheme and 
fraudulently obtained over $2.6 million 
in COVID relief funds. 
Subject was sentenced 
to 45 months 
incarceration, 3 years 
supervised release, and 
ordered to pay  
$5.3 million. 
TX 
DL 
BL 
FHFA OIG 
Subject submitted false and fraudulent 
PPP applications and received over 
$530,000. 
Subject was sentenced 
to 2 years of probation 
and ordered to pay 
$410,875. 
WI 
GC 
GSA OIG 
As part of the scheme, subject solicited 
15 HUBZone set-aside contracts on 
behalf of a construction company and 
was awarded seven HUBZone set-aside 
contracts based on fraudulent 
representation made to SBA. When 
performing the HUBZone contracts, 
subject did not comply with the 
HUBZone subcontracting rules requiring 
the company to perform at least 15% of 
the cost of HUBZone contract 
performance. 
Subject was sentenced 
to 4 months 
incarceration, 1 years 
of supervised release, 
and ordered to pay 
$23,652. 

U.S. Small Business Administration | Office of Inspector General 
62 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
GA 
DL 
BL 
DHS HSI 
Subject was a former SBA loan officer 
who used their position to improperly 
push through EIDLs over $1 million. 
Subject was sentenced 
to 5 years of probation 
and ordered to pay 
$152,800. 
IL 
DL 
BL 
FBI 
Subject submitted false and fraudulent 
PPP and EIDL applications totaling over 
$2.7 million and fraudulently obtained 
over $1.5 million. 
Subject was sentenced 
to 18 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$19.9 million. 
NY 
DL 
BL 
FBI, FDIC OIG 
FRB OIG, IRS 
CI 
Subjects submitted multiple fraudulent 
PPP and EIDL applications. Subjects 
successfully obtained over $200,000 in 
fraudulent funds. 
Subject 1 was 
sentenced to 20 
months incarceration 
and 2 years supervised 
release. Subject 2 was 
sentenced to 20 
months incarceration 
and 2 years supervised 
release. Subject 3 was 
sentenced to 48 
months incarceration 
and 3 years supervised 
release. Subjects were 
ordered to pay over 
$200,000. 
IA 
DL 
BL 
FBI, FDIC OIG, 
DHS HSI 
Subjects made false statements in the 
attempt to obtain over 320 EIDLs and 
PPP loans totaling over $7.6 million. 
Subject 1 was 
sentenced to 11 
months incarceration 
and 2 years supervised 
release. Subject 2 was 
sentenced to 5 months 
incarceration and 1 
years supervised 
release. Subjects were 
ordered to pay 
$250,000. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 63 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
TX 
DL 
BL 
FBI, IRS CI 
Subjects submitted multiple EIDL and 
PPP applications seeking over $500,000. 
Subject 1 was 
sentenced to 21 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 5 years 
probation. Subjects 
were ordered to pay 
over $650,000. 
TX 
DL 
BL 
FBI, DOI OIG 
Subjects devised a scheme and received 
over $1.3 million in PPP loans and EIDLs. 
Subject 1 was 
sentenced to 293 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 5 years 
probation. Subject 3 
was sentenced to 3 
years probation. 
Subject 4 was 
sentenced to 3 years 
probation. Subject 5 
was sentenced to 3 
years probation. 
Subject 6 was 
sentenced to 3 years 
probation. Subject 7 
was sentenced to 3 
years probation. 
Subjects were ordered 
to pay over $1 million. 
TX 
BL 
DL 
FBI, IRS CI, 
SIGPR, FRB 
OIG 
Subjects defrauded various SBA 
programs over $66 million in a multi-
level PPP fraud scheme involving 
networks of customers and recruiters 
who conspired to falsify and submit PPP 
loan applications and supporting 
documentation to secure taxpayer funds 
through a fintech and SBA lender. 
Subject 1 was 
sentenced to 41 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 3 years 
probation. Subjects 
were ordered to pay 
over $66 million. 

U.S. Small Business Administration | Office of Inspector General 
64 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
IL 
BL 
DL 
FBI, USPIS, 
DOL OIG 
Subjects who were current and former 
USPS employees submitted fraudulent 
PPP loan applications and EIDL advance 
applications totaling over $150,000. 
Subject 1 was 
sentenced to 4 years 
on supervised release. 
Subject 2 was 
sentenced to 3 years 
on supervised release. 
Subject 3 was 
sentenced to 2 years 
on supervised release. 
Subject 4 was 
sentenced to 2 years 
on supervised release. 
Subject 5 was 
sentenced to 2 years 
on supervised release. 
Subjects were ordered 
to pay over $145,000. 
MS 
DL 
FBI, TIGTA 
Subjects submitted fraudulent EIDL 
applications. One was a former SBA 
employee who accessed agency 
databases to fabricate and upload 
fraudulent IRS and SBA forms to process 
EIDLs, totaling over $3.3 million. 
Subject 1 was 
sentenced to 1 month 
of incarceration and 5 
years supervised 
release. Subject 2 was 
sentenced to 5 years 
on supervised release. 
Subject 3 was 
sentenced to 5 years 
on supervised release. 
Subject 4 was 
sentenced to 5 years 
on supervised release. 
Subject 5 was 
sentenced to 5 years 
on supervised release. 
Subjects were ordered 
to pay over $1 million. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 65 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
NJ  
DL 
FBI, IRS CI 
Subjects submitted multiple fraudulent 
EIDL applications. Subjects successfully 
obtained over $790,000 in fraudulent 
funds. 
Subject 1 was 
sentenced to 12 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 12 
months incarceration 
and 3 years supervised 
release. Subjects were 
ordered to pay 
$790,000. 

U.S. Small Business Administration | Office of Inspector General 
66 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
TX 
BL 
DHS HSI 
Subjects lead a criminal network of 112 
coconspirators submitting fraudulent 
PPP applications and receiving over  
$2.4 million. 
Subject 1 was 
sentenced to 18 
months of 
incarceration and 5 
years supervised 
release. Subject 2 was 
sentenced to 25 
months of 
incarceration and 5 
years supervised 
release. Subject 3 was 
sentenced to 8 months 
of incarceration and 3 
years supervised 
release. Subject 4 was 
sentenced to 8 months 
of incarceration and 3 
years supervised 
release. Subject 5 was 
sentenced to 8 months 
of incarceration and 3 
years supervised 
release. Subject 6 was 
sentenced to 18 
months of 
incarceration and 5 
years supervised 
release. Subjects 7, 8, 
and 9 were each 
sentenced to 5 years 
supervised release. 
Subjects were ordered 
to pay over  
$1.3 million. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 67 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
IA 
DL 
BL 
FBI, FDIC OIG, 
HSI 
Subjects devised a scheme and applied 
for over $7.6 million in PPP loans and 
EIDLs. Subjects misrepresented the 
number of employees and payroll 
expenses. 
Subject 1 was 
sentenced to 12 
months of probation. 
Subject 2 was 
sentenced to 24 
months of probation. 
Subject 3 was 
sentenced to 12 
months of probation. 
Subject 4 was 
sentenced to 12 
months of probation. 
Subjects were ordered 
to pay $7.6 million. 
TX 
BL 
FBI, IRS CI 
Subject submitted fraudulent PPP 
applications and received over 
$650,000. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$629,000. 
TX 
BL 
IRS CI 
Subjects submitted multiple PPP 
applications seeking over $3 million. 
Subject 1 was 
sentenced to 70 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 48 
months incarceration 
and 3 years supervised 
release. Subjects were 
ordered to pay  
$2.5 million. 
PR 
DL 
BL 
TIGTA, IRS CI, 
USSS 
Subjects participated in an organized 
fraud kickback ring that recruited others 
to defraud the PPP and EIDL programs 
to receive over $9 million in funding. 
Subject 1 was 
sentenced to 24 
months of probation. 
Subjects 4-12 were 
sentenced to 12 
months of probation. 
Subjects were ordered 
to pay $170,000. 

U.S. Small Business Administration | Office of Inspector General 
68 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
WA 
BL 
AFOSI 
Subjects submitted fraudulent PPP and 
EILD applications and received over 
$800,000. Subjects created fictitious 
businesses for themselves and recruited 
others to obtain EIDL advances and PPP 
loans in exchange for a fee. 
Subject 1 was 
sentenced to 13 
months incarceration, 
3 years of supervised 
release. Subject 2 was 
sentenced to 5 years 
probation. Subjects 
were ordered to pay 
$882,000. 
CA 
BL 
USAO 
Subjects submitted multiple fraudulent 
PPP loan applications. 
Subject 1 was 
sentenced to 12 
months in home 
confinement, 2 years 
of supervised release. 
Subject 2 was 
sentenced to 84 
months incarceration, 
3 years of supervised 
release. Subjects were 
sentenced to 24 
months of probation. 
Subjects were ordered 
to pay $3.1 million. 
FL 
DL 
FBI, USSS 
Subjects submitted fraudulent PPP 
applications and attempted to obtain 
over $1.7 million. 
Subject 1 was 
sentenced to 36 
months incarceration 
and 2 years supervised 
release. Subject 2 was 
sentenced to 36 
months incarceration 
and 2 years supervised 
release. Subjects were 
ordered to pay $1.3 
million. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 69 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
FL 
DL 
BL 
FDIC OIG, 
TIGTA, IRS CI 
A previous SBA employee and a USPS 
employee conspired and submitted 
multiple PPP and EIDL applications 
seeking over $1.3 million. 
Subject 1 was 
sentenced to 60 
months incarceration 
and 2 years supervised 
release. Subject 2 was 
sentenced to 54 
months incarceration 
and 2 years supervised 
release. Subject 3 was 
sentenced to 9 months 
incarceration and 2 
years supervised 
release. Subjects were 
ordered to pay $2.2 
million. 
FL 
BL 
FBI 
Subjects devised a scheme and applied 
for over $200,000 in PPP loans. Subjects 
misrepresented the number of 
employees and payroll expenses. 
Subject 1 was 
sentenced to 5 months 
incarceration and 3 
years supervised 
release. Subject 2 was 
sentenced to 5 years 
supervised release. 
Subjects were ordered 
to pay $115,000. 
UT 
BL 
TIGTA, USPIS 
Subjects executed a scheme to defraud 
various lenders of over $1.2 million by 
creating false companies. 
Subject 1 was 
sentenced to 18 
months incarceration 
and 3 years supervised 
release. Subject 2 was 
sentenced to 18 
months incarceration 
and 3 years supervised 
release. Subjects were 
ordered to pay  
$1.2 million. 

U.S. Small Business Administration | Office of Inspector General 
70 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
AL 
BL 
DL 
RFF 
FBI, IRS CI 
Subject devised a scheme to 
manipulate, fabricate and upload 
fraudulent IRS and SBA forms used to 
process fraudulent PPP, RFF, EIDL 
applications which resulted in over 
$774,000 disbursed and $14.6 million in 
unsuccessful EIDL and RRF attempts. 
Subject was sentenced 
to 114 months 
incarceration and 3 
years of supervised 
release and was 
ordered to pay 
$774,000. 
NV 
BL 
FRB OIG, IRS 
CI, FDIC OIG 
Subject fraudulently submitted loan 
applications through the PPP, falsely 
misrepresenting payroll and number of 
employees, to obtain over $11 million to 
gamble at Las Vegas casinos and 
purchase luxury vehicles and real estate. 
Subject was sentenced 
to 181 months 
incarceration and 5 
years of supervised 
release and was 
ordered to pay  
$11.7 million. 
AL 
DL 
BL 
FRB OIG, IRS 
CI, FDIC OIG 
Subject fraudulently submitted loan 
applications through the PPP and EIDL, 
obtaining over $4.7 million. 
Subject was sentenced 
to 57 months 
incarceration and 3 
years of supervised 
release and was 
ordered to pay  
$4.7 million 
AZ 
DL 
BL 
FBI, IRS CI 
Subject submitted false and fraudulent 
PPP and EIDL applications and received 
over $306,000. 
Subject was sentenced 
to 96 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$899,552. 
IL 
BL 
USSS 
Subject submitted multiple fraudulent 
PPP loans and EIDLs on behalf of non-
existent or non-operating businesses, 
resulting in a loss of $567,333. 
Subject was sentenced 
to 70 months 
incarceration and 3 
years of supervised 
release and was 
ordered to $567,333. 
MD 
DL 
BL 
FBI 
Subject submitted fraudulent PPP and 
EIDL applications and attempted to 
obtain over $24 million in taxpayer 
funds. 
Subject was sentenced 
to 3 months 
incarceration and 3 
years of supervised 
release and was 
ordered to pay  
$24 million. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 71 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
IA 
DL 
TIGTA, FDIC 
OIG 
Subject submitted false and fraudulent 
EIDL applications and received over 
$150,000. 
Subject was sentenced 
to 3 years of 
supervised release and 
ordered to pay 
$159,900. 
TX 
DL 
USSS 
Subject submitted false and fraudulent 
PPP applications and received over 
$220,000. 
Subject was sentenced 
to 72 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$220,000. 
OR 
DL 
BL 
IRS CI 
Subject made false assertions and 
certifications concerning PPP and EIDLs 
totaling over $2.7 million. 
Subject was sentenced 
to 37 months 
incarceration and 3 
years of supervised 
release and was 
ordered to over  
$4 million. 
TX 
BL 
DL 
VA OIG 
Subject submitted fraudulent EIDL and 
PPP applications and attempted to 
obtain over $2 million in taxpayer funds. 
Subject was sentenced 
to 120 months 
incarceration, 3 
months supervised 
release, and was 
ordered to pay  
$1.9 million. 
DC 
BL 
DL 
FBI 
A former police officer made multiple 
false statements and attempted to 
obtain PPP loans and EIDLs and received 
$35,000. 
Subject was sentenced 
to 3 years supervised 
release and ordered to 
pay $35,000. 
FL 
DL 
USAO 
Subject submitted fraudulent EIDL 
applications and attempted to obtain 
over $500,000 in taxpayer funds. 
Subject was sentenced 
to 4 years supervised 
release and ordered to 
pay $304,999. 
CO 
DL 
FBI 
Subject made false statements and 
attempted to obtain EIDLs over  
$1 million. 
Subject was sentenced 
to 240 months 
incarceration, 2 years 
of supervised release, 
and ordered to pay  
$1 million. 

U.S. Small Business Administration | Office of Inspector General 
72 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
KS 
GC 
FDIC OIG 
Subject made multiple false statements 
and obtained a 7(a) loan for over  
$3.6 million. 
Subject was sentenced 
to 120 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$3.7 million. 
FL 
BL 
USAO 
Subject made false statements and 
obtained $750,000 in PPP loans. 
Subject was sentenced 
to 180 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$14.5 million. 
FL 
BL 
USSS 
Subject submitted false and fraudulent 
PPP applications and received over 
$300,000 in loan proceeds. 
Subject was sentenced 
to 42 months 
incarceration, 5 years 
of supervised release, 
and ordered to pay 
$306,415. 
IA 
BL  
FBI 
Subject submitted fraudulent EIDL and 
PPP applications and attempted to 
obtain over $3 million in taxpayer funds. 
Subject was sentenced 
to 78 months 
incarceration, 2 years 
of supervised release, 
and ordered to pay 
$3.4 million. 
CA 
DL 
BL 
FBI 
Subject submitted fraudulent PPP 
applications and received over  
$9 million in loans. 
Subject was sentenced 
to 18 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$1.6 million. 
CA 
DL 
BL 
USPIS 
Subject submitted fraudulent PPP 
applications and received over $300,000 
in loan proceeds. 
Subject was sentenced 
to 71 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$317,000. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 73 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
MT 
DL 
AUSO 
Subject applied for EIDL and EIDL 
advances using false information. 
Subject was sentenced 
to 12 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$130,000. 
PA 
DL 
BL 
USSS, IRS CI, 
TIGTA 
Subject applied for EIDL and PPP loans 
using false information. 
Subject was sentenced 
to 12 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$245,000. 
OK 
DL 
BL 
TIGTA, FRB 
OIG 
Subject created fraudulent documents, 
businesses, and false identities and 
attempted to receive over $1.5 million 
in loans. 
Subject was sentenced 
to 33 months 
incarceration, 5 years 
of supervised release, 
and ordered to pay 
$1.6 million. 
MD 
BL 
DL 
IRS-CI 
Subject conspired and submitted false 
statements to fraudulently obtain over 
$1.7 million in disbursements. 
Subject was sentenced 
to 12 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$1.3 million. 
NY 
BL 
DL 
FRB OIG, FDIC 
OIG, USPIS 
Subject made multiple false statements 
and attempted to obtain PPP and EIDL 
loans totaling $550,000. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$551,000. 
UT 
DL 
IRS-CI 
Subject made multiple false statements 
and attempted to obtain PPP and EIDLs. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$333,900. 

U.S. Small Business Administration | Office of Inspector General 
74 | Fall 2025 Semiannual Report to Congress 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
FL 
BL 
DL 
DHS HIS 
Subject made multiple false statements 
and attempted to obtain over $600,000 
in PPP loans and EIDLs. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$609,234. 
NY 
DL 
AUSA 
Subject made multiple false statements 
and attempted to obtain EIDLs. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$498,000. 
FL 
BL 
DL 
USSS 
Subject made multiple false statements 
and attempted to obtain EIDLs. 
Subject was sentenced 
to 21 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$906,006. 
CA 
BL 
DL 
FBI, IRS CI, 
FDIC OIG 
Subject made multiple false statements 
and attempted to obtain EIDLs over 
$15.7 million. 
Subject was sentenced 
to 6 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$644,433. 
IL 
BL 
FHFA OIG, 
TIGTA 
Subject secured over $763,000 from 15 
false PPP loan applications. 
Subject was sentenced 
to 14 months 
incarceration, 18 
months of supervised 
release, and ordered to 
pay $763,643. 
PA 
BL 
DL 
FBI NCIS 
Subject laundered the proceeds of a 
large-scale business email compromise 
scheme through numerous business 
banking accounts he opened expressly 
for this purpose. Subject laundered 
about $2 million and profited over 
$100,000. 
Subject was sentenced 
to 24 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$17,407. 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 75 
State 
Program 
Jointly With 
Alleged Violation(s) Prosecuted 
Legal Action 
OR 
BL 
DL 
TIGTA, DHS 
HSI 
Subject secured over $253,024 through 
PPP and EIDL programs and stole 
Treasury checks totaling $406,468. 
Subject was sentenced 
to 24 months 
incarceration, 13 
months of supervised 
release, and ordered to 
pay $144,575. 
FL 
BL 
DL 
USAO 
Subject submitted false and fraudulent 
PPP and EIDL applications and received 
over $300,000 in loan proceeds. 
Subject was sentenced 
to 41 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$316,000. 
MT 
BL 
DL 
FBI 
Subject submitted multiple fraudulent 
PPP loans and EIDLs on behalf of non-
existent or non-operating businesses. 
Subject was sentenced 
to 12 months 
incarceration, 3 years 
of supervised release, 
and ordered to pay 
$192,567. 
TN 
 BL 
USSS, FDIC 
OIG, FHFA 
OIG, TIGTA 
As part of the scheme, subject 
submitted fraudulent PPP applications 
to obtain taxpayer funds. 
Subject was sentenced 
to 18 months 
incarceration, 3 years 
supervised release, and 
order to pay  
$4.4 million. 
Table Notes: 
Legal Actions Summary Program Codes 
BL 
= 
Business Loans 
DL 
= 
Disaster Loans 
GC 
= 
Government Contracting and Section 8(a) Business Development 
RRF 
= 
Restaurant Revitalization Fund 
IA 
= 
Internal Affairs 
OT 
= 
Other 
Joint Investigation Agency Acronyms 
Air Force Office of Special Investigations (AFOSI) 
Council of the Inspectors General on Integrity and Efficiency (CIGIE) 
Defense Criminal Investigative Service (DCIS) 
Department of Commerce Office of Inspector General (DOC OIG) 
Department of Energy Office of Inspector General (DOE OIG) 
Department of Labor Office of Inspector General (DOL OIG) 
Department of Health and Human Services Office of Inspector General (HHS OIG) 
Department of Homeland Security Homeland Security Investigations (DHS HSI) 
Department of Homeland Security Immigration and Customs Enforcement (DHS ICE) 
Department of Homeland Security Office of Inspector General (DHS OIG) 
Department of the Interior Office of Inspector General (DOI OIG) 
Department of Justice Office of Inspector General (DOJ OIG) 
Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) 
Department of State Office of Inspector General (DOS OIG) 

U.S. Small Business Administration | Office of Inspector General 
76 | Fall 2025 Semiannual Report to Congress 
Department of Transportation Office of Inspector General (DOT OIG) 
Department of Treasury Inspector General for Tax Administration (TIGTA) 
Department of Treasury Special Inspector General for the Troubled Asset Relief Program (SIGTARP) 
Department of Veterans Affairs Office of Inspector General (VA OIG) 
Federal Bureau of Investigation (FBI) 
Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) 
Federal Housing Finance Agency Office of Inspector General (FHFA OIG) 
Federal Reserve Board Office of Inspector General (FRB OIG) 
General Services Administration Office of Inspector General (GSA OIG) 
Internal Revenue Service Criminal Investigation (IRS CI) 
National Aeronautics and Space Administration Office of Inspector General (NASA OIG) 
Social Security Administration Office of Inspector General (SSA OIG) 
State of California Employment Development Department (State of CA EDD) 
United States Airforce Office of Special Investigations (AFOSI) 
United States Army Criminal Investigation Division (Army CID) 
United States Department of Agriculture Office of Inspector General (USDA OIG) 
United States Naval Criminal Investigative Service (NCIS) 
United States Postal Inspection Service (USPIS) 
United States Secret Service (USSS) 
 
 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2025 | 77 
Appendix H: External Peer Reviews 
Section 5(a) of the IG Act requires offices of inspector general to report peer review results in their 
semiannual reports to Congress. The following information is provided in accordance with these 
requirements. 
Audits Division 
The Government Auditing Standards, or Yellow Book, issued by the Comptroller General of the 
United States, requires that audit organizations performing audits and attestation engagements in 
accordance with the Yellow Book must have an external peer review performed by reviewers 
independent of the audit organization being reviewed at least once every 3 years. OIG’s Audits 
Division was reviewed by the National Railroad Passenger Corporation OIG for the period ending 
March 31, 2024. SBA OIG received a peer review rating of pass. 
Similarly, the Council of the Inspectors General on Integrity and Efficiency (CIGIE) requires that 
organizations that conduct inspections and evaluations under the Quality Standards for Inspection 
and Evaluation, or Blue Book, must have an external peer review at least once every 3 years. 
During FY 2023, our Audits Division underwent a Blue Book peer review conducted by the Board of 
Governors of the Federal Reserve System OIG. SBA OIG generally met Blue Book standards. 
Investigations Division 
Section 6(e)(7) of the IG Act, Attorney General Guidelines for Offices of Inspector General with 
Statutory Law Enforcement Authority, and the CIGIE Quality Standards for Investigations require 
external peer reviews of OIG investigative functions be conducted every 3 years. 
In May 2023, Treasury OIG reviewed our Investigations Division and issued a final report on June 6, 
2023. Treasury OIG found that the system of internal safeguards and management procedures for 
the investigative function of OIG complied with the quality standards established by CIGIE and the 
applicable Attorney General’s guidelines. No recommendations were offered. 
 

U.S. Small Business Administration | Office of Inspector General 
78 | Fall 2025 Semiannual Report to Congress 
Appendix I: Office of Inspector General Reporting 
Requirements 
Under the Inspector General Act of 1978, as amended, OIG provides independent, objective 
oversight to improve the integrity, accountability, and performance of SBA and its programs for 
the benefit of the American people. 
Although SBA’s programs are essential to strengthening America’s economy, the agency faces 
several challenges in carrying out its mission. Access our annual report of the agency’s top 
management and performance challenges on our OIG Reports web page. 
OIG plays a critical role in addressing these and other challenges by conducting audits to identify 
wasteful expenditures and program mismanagement; investigating fraud and other wrongdoing; 
and taking other actions to deter and detect waste, fraud, abuse, and inefficiencies in SBA 
programs and operations. 
OIG’s activities also help to ensure that SBA employees possess a high level of integrity. This is 
critical to the proper administration of SBA’s programs because it helps ensure SBA resources 
are used by those who need them the most. Copies of OIG reports and other products are 
available at our OIG Reports web page. 
Reporting Requirements in the Inspector General Act of 1978, As 
Amended, 5 USC 407 and 420(b)(2)(B) 
Section 
Reporting Requirement 
Location 
404(a)(2) 
Review of legislation and regulations 
Other Significant OIG Activities 
405(b)(1) 
Significant problems, abuses, and 
deficiencies 
Throughout 
405(b)(2) 
Recommendations with respect to 
significant problems, abuses, and 
deficiencies 
Significant Recommendations From This 
Reporting Period 
405(b)(3) 
Prior significant recommendations on 
which corrective action has not been 
completed 
Significant Recommendations From Prior 
Reporting Periods Without Final Action as of 
September 30 
405(b)(4) 
Matters referred to prosecutive authorities 
Legal Actions Summary 
406(c)(2) 
Instances in which requested information 
was refused 
N/A 
405(b)(6) 
List of audit, inspection, and evaluation 
reports 
Reports Issued; Reports With Questioned 
Costs 
405(b)(7) 
Significant reports 
Throughout 

U.S. Small Business Administration | Office of Inspector General 
Semiannual Report to Congress, Fall 2024 | 79 
405(b)(8),(
9) & (17) 
Audit, inspection, and evaluation statistical 
tables 
Statistical Highlights 
405(b)(9) 
Audit, inspection, and evaluation statistical 
tables with recommendations that funds 
be put to better use 
Statistical Tables With Recommendations 
That Funds Be Put to Better Use 
405(b)(10) 
Audit, inspection, and evaluation reports 
without management decision, without 
comment within 60 days, or with 
unimplemented recommendations 
Reports from Prior Periods With Overdue 
Management Decisions; Reports From Prior 
Periods With Open Recommendations as of 
September 30 
405(b)(11) 
Revised management decisions 
Significant Revised Management Decisions 
405(b)(12) 
Management decisions with which the 
Inspector General disagrees 
Significant Management Decisions With 
Which OIG Disagrees 
405(b)(13) 
Information described under section 05(b) 
of the Federal Financial Management 
Improvement Act of 1996 
Federal Financial Management Improvement 
Act 
405(b)(14)
–(16) 
Peer review results 
External Peer Reviews 
405(b)(17)
-(18) 
Investigative statistical tables and 
supporting metrics 
Investigations Reporting Statistics 
405(b)(19) 
Investigations involving a senior 
government employee where allegations 
of misconduct were substantiated 
Investigations Involving a Senior Government 
Employee Where Misconduct Was 
Substantiated 
405(b)(20) 
Whistleblower retaliation 
Whistleblower Retaliation Cases 
405(b)(21) 
Attempts to interfere with the 
independence of OIG 
Instances of Interference 
405(b)(22) 
Each closed inspection, evaluation, and 
audit not disclosed to the public; each 
closed investigation involving a senior 
government employee not disclosed to the 
public 
Investigations Involving a Senior Government 
Employee That Is Closed and Not Disclosed to 
the Public 
 
 
 

U.S. Small Business Administration | Office of Inspector General 
80 | Fall 2025 Semiannual Report to Congress 
Make a Difference 
To promote integrity, economy, and efficiency, we encourage you to report instances of fraud, 
waste, or mismanagement to the OIG Hotline.* 
Visit our OIG Hotline website. 
Write or visit: 
U.S. Small Business Administration 
Office of Inspector General 
Investigations Division 
409 Third Street, SW (5th Floor) 
Washington, DC 20416 
*In accordance with the Inspector General Act of 1978, codified as amended at 5 USC 407 and 420(b)(2)(B), confidentiality of a 
complainant’s personal identifying information is mandatory, absent express consent by the complainant authorizing the release 
of such information.

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