Letter to The Honorable Jovita Carranza, Administrator, U.S. Small Business Administration (April 23, 2020)

Summary

A letter dated April 23, 2020 to Administrator Jovita Carranza of the Small Business Administration (SBA). It expresses serious concern about reports in the media that SBA permitted sensitive, personally identifiable information of thousands of Economic Injury Disaster Loan (EIDL) applicants to become exposed. The letter notes that Congress provided $675 million for administrative costs in the CARES Act and an additional $2.1 billion in the interim supplemental. It asks SBA to provide a complete accounting of the incident, including how the breach occurred, the number of individuals and firms possibly affected, when notice was given, and the steps taken to secure applicant information.

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                                                    April 23, 2020

The Honorable Jovita Carranza
Administrator
U.S. Small Business Administration
409 3rd Street, SW
Washington, DC 20416

Dear Administrator Carranza:

We are writing to express serious concern about recent reports in the media that the Small Business
Administration (SBA) permitted sensitive, personally identifiable information of thousands of Economic
Injury Disaster Loan (EIDL) applicants to become exposed.

We appreciate that SBA is taking on an unprecedented role in the federal response to the COVID-19
pandemic and is rapidly expanding its capacity in real time. As we have worked to address COVID-19,
Congress has relied on SBA’s assessment of the resources necessary for this undertaking, providing $675
million for administrative costs in the CARES Act and an additional $2.1 billion in the interim
supplemental. The American people deserve a detailed accounting of what policies and procedures SBA
has implemented to protect small business owners’ personally identifiable information given the volume
and sensitivity of the information the agency now receives.

SBA must immediately provide a complete accounting of this incident, including: a summary of
information about the data breach and how the breach occurred; the number of individuals and firms that
may have been affected; when SBA notified those individuals and firms possibly affected; the period of
time information was compromised; and what steps SBA has taken to ensure that applicant information is
secure going forward.

We do not need to emphasize how vulnerable the nation’s small businesses are right now. More than ever,
they are counting on SBA to deliver vital assistance in a responsible and competent manner. Please know
that Congress stands ready to work with you to prevent future breaches of this kind.

                                       Sincerely,




_____________________________                           ____________________________
Benjamin L. Cardin                                      Marco Rubio
Ranking Member                                          Chairman
Senate Committee on                                     Senate Committee on
Small Business & Entrepreneurship                       Small Business & Entrepreneurship




___________________________
Nydia M. Velázquez
Chairwoman
House Small Business Committee


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