GAO-23-106377: Priority Open Recommendations: Small Business Administration

Summary

A letter from the Comptroller General to Small Business Administration Administrator Isabella Casillas Guzman, dated May 15, 2023 (GAO-23-106377), on the status of SBA's priority open recommendations. It states that as of April 2023 SBA had 45 open recommendations and that since the June 2022 letter SBA implemented eight of the 15 open priority recommendations, including reporting an estimated improper payment amount and error rate for the Paycheck Protection Program (PPP). GAO adds six new priority recommendations related to COVID-19 pandemic response programs, cybersecurity and annual reporting practices, bringing the total to 13. The letter groups them in five areas, among them oversight and communication for COVID-19 pandemic response, disaster recovery efforts and export promotion operations.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

441 G St. N.W.                                                                              Comptroller General
Washington, DC 20548                                                                        of the United States



May 15, 2023


The Honorable Isabella Casillas Guzman
Administrator
U.S. Small Business Administration
409 3rd Street, SW
Washington, D.C. 20416


Priority Open Recommendations: Small Business Administration

Dear Administrator Guzman:

The purpose of this letter is to provide an update on the overall status of the Small Business
Administration’s (SBA) implementation of GAO’s recommendations and to call your continued
attention to areas in which open recommendations should be given high priority. 1 In November
2022, we reported that, on a government-wide basis, 77 percent of our recommendations made
4 years ago were implemented. 2 SBA’s implementation rate was 100 percent for
recommendations made 4 years ago. 3 As of April 2023, SBA had 45 open recommendations.
Fully implementing these open recommendations could significantly improve agency operations.

Since our June 2022 letter, SBA implemented eight of the 15 open priority recommendations.
Specifically:

    •    In November 2022, SBA reported an estimated improper payment amount and error rate
         for the Paycheck Protection Program (PPP). This addressed one recommendation from
         our November 2020 report, and helps SBA better address the improper payments it
         reported. 4

    •    SBA developed and implemented a data analytics and loan anomaly detection tool to
         detect potential fraud among pandemic-related loans and advances for the Economic




1Priority recommendations are those that GAO believes warrant priority attention from heads of key departments or

agencies. They are highlighted because, upon implementation, they may significantly improve government
operations, for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making
progress toward addressing a high-risk or duplication issue.
2GAO, Performance and Accountability Report: Fiscal Year 2022, GAO-23-900398 (Washington, D.C.: Nov. 15,

2022).
3SBA’s implementation rate in 2020 and 2021 for recommendations made 4 years prior also was 100 percent.

4GAO, COVID-19: Urgent Actions Needed to Better Ensure an Effective Federal Response, GAO-21-191

(Washington, D.C.: Nov. 30, 2020).



Page 1                                                                                            GAO-23-106377
         Injury Disaster Loan (EIDL) program—thereby addressing one recommendation from our
         January 2021 report. 5

    •    SBA developed fraud risk assessments for its PPP and EIDL programs, which included
         identifying potential risks to the programs that exceeded SBA’s risk tolerances.
         Additionally, SBA developed and began implementing a plan to review nonperforming
         loans and servicing requests (e.g., loan modifications) in its EIDL program. By taking
         these measures, SBA addressed three recommendations from our March 2021 report. 6

    •    SBA revised the disaster action plan template for the Disaster Loan Program to include
         critical elements the agency identified in its review of existing SBA disaster assistance
         plans, as we recommended in a February 2020 report evaluating SBA’s response to
         major hurricanes in 2017. 7

    •    SBA established procedures and new checks that provide reasonable assurance that
         state grantees will meet certain legal requirements for providing matching export
         promotion funding, thereby addressing two recommendations from our March 2019
         report. 8

We ask for your continued attention to the remaining priority recommendations. We also are
adding six new priority recommendations this year. These recommendations are related to
COVID-19 pandemic response programs, cybersecurity, and annual reporting practices. This
brings the total number of priority recommendations to 13. See enclosure for the list of
recommendations.

SBA’s 13 priority recommendations fall into the following five areas:

    •    Improving oversight and communication for COVID-19 pandemic response. Since
         March 2020, SBA has provided billions of dollars in loans and grants through programs
         designed to help businesses harmed by the COVID-19 pandemic. But SBA initially
         implemented the programs with fewer safeguards and without fully assessing and
         managing fraud and other risks. Additionally, SBA’s financial statement auditor reported
         in November 2022 that material weaknesses remained in SBA’s controls over two
         programs—PPP and EIDL. SBA also did not communicate key information to potential
         and actual applicants. SBA has taken a number of actions that put the agency in a better
         position to protect the integrity of its emergency lending programs than when these
         programs began. For example, SBA implemented an oversight plan for PPP loans,
         which included automated and manual screening of loans for noncompliance with




5GAO, COVID-19: Critical Vaccine Distribution, Supply Chain, Program Integrity, and Other Challenges Require

Focused Federal Attention, GAO-21-265 (Washington, D.C.: Jan. 28, 2021).
6GAO, COVID-19: Sustained Federal Action Is Crucial as Pandemic Enters Its Second Year, GAO-21-387

(Washington, D.C.: Mar. 31, 2021).
7GAO, Small Business Administration: Disaster Loan Processing Was Timelier, but Planning Improvements and Pilot

Program Evaluation Needed, GAO-20-168 (Washington, D.C.: Feb. 7, 2020).
8GAO, Small Business Administration: Export Promotion Grant Program Should Better Ensure Compliance with Law

and Help States Make Full Use of Funds, GAO-19-276 (Washington, D.C.: Mar.12, 2019).



Page 2                                                       GAO-23-106377 SBA Priority Recommendations
         eligibility requirements and for fraud and abuse. SBA also implemented a data analytics
         tool for the EIDL program and conducted fraud risk assessments for PPP and EIDL.

         Moving forward, fully implementing the six priority recommendations, such as by
         developing a comprehensive strategy for communicating with potential and actual
         program applicants in the event of a large-scale disaster such as the COVID-19
         pandemic, and developing strategies to address assessed fraud risks for specific
         programs, would improve SBA’s ability to safeguard billions of taxpayer dollars and to
         provide assistance more effectively. Taking these actions also would help the agency
         better prepare to implement future emergency lending or grant programs.

   •     Enhancing disaster recovery efforts. Disasters affect numerous American
         communities and cause billions of dollars of damage. Some communities, such as low-
         income communities, also may face barriers in accessing the recovery assistance that
         SBA and other federal agencies provide. We identified three priority recommendations
         for SBA in this area: document risks associated with its disaster response as well as
         plans to mitigate these risks, implement an interagency plan to support federal agencies
         involved in disaster recovery, and coordinate with other agencies to design and establish
         processes across recovery programs that address access barriers and disparate
         outcomes. Taking these actions would improve SBA’s ability to implement its disaster
         recovery efforts, including in coordination with other key federal partners.

   •     Improving export promotion operations. Small businesses and exports are important
         in supporting U.S. economic growth. The federal government provides assistance to
         U.S. exporters, especially small businesses, to help them overcome challenges to selling
         their goods and services abroad. The one priority recommendation in this area calls for
         SBA to take measures to expand the Office of International Trade field staff as required
         by the Small Business Jobs Act of 2010. If implemented, this recommendation would
         help SBA more effectively assist small business exporters.

   •     Addressing cybersecurity challenges. The large amount of personally identifiable
         information federal agencies collect for government programs and the increasing
         sophistication of the technology they use to collect this information highlights the
         importance of strong programs for ensuring privacy protections. The one priority
         recommendation in this area calls for SBA to fully define and document a process for
         ensuring the agency’s privacy official is involved in assessing and addressing the hiring,
         training, and professional development needs of the agency with respect to privacy.
         Fully implementing this recommendation would help SBA more consistently and
         effectively implement key practices for its privacy program.

   •     Meeting reporting requirements in a more timely manner. Annual reporting by
         agencies on federal programs can help agencies meet their statutory responsibilities and
         inform congressional decision-making and oversight. We identified two priority
         recommendations in this area. The first calls for SBA to take steps to improve the
         timeliness of its annual reports to Congress on the Small Business Innovation Research
         and Small Business Technology Transfer programs. The second calls for SBA to assess
         and address delays in annual reporting for the 8(a) Business Development Program.
         Fully implementing these two recommendations would help the agency provide more
         timely information that would aid Congress’s oversight of the programs.

                                             -- -- -- -- --


Page 3                                                  GAO-23-106377 SBA Priority Recommendations
In April 2023, we issued our biennial update to our High-Risk List. This list identifies government
operations with greater vulnerabilities to fraud, waste, abuse, and mismanagement. It also
identifies the need for transformation to address economy, efficiency, or effectiveness
challenges. 9 One of our high-risk areas—emergency loans for small businesses—centers
directly on SBA.

Several other government-wide, high-risk areas also have direct implications for SBA and its
operations. These include (1) improving the management of IT acquisitions and operations, (2)
improving strategic human capital management, (3) managing federal real property, (4)
ensuring the cybersecurity of the nation, 10 and (5) the government-wide personnel security
clearance process.

We urge your attention to the SBA and other government-wide, high-risk issues as they relate to
SBA. Progress on high-risk issues has been possible through the concerted actions and efforts
of Congress, Office of Management and Budget, and the leadership and staff in agencies,
including within SBA. In March 2022, we issued a report on key practices to successfully
address high-risk areas, which can be a helpful resource as your agency continues to make
progress to address high-risk issues. 11

In addition to your continued attention on these issues, Congress plays a key role in providing
oversight and maintaining focus on our recommendations to ensure they are implemented and
produce their desired results. Legislation enacted in December 2022 includes a provision for
GAO to identify any additional congressional oversight actions that can help agencies
implement priority recommendations and address any underlying issues relating to such
implementation. 12

There are various strategies Congress can use in addressing our recommendations, such as
incorporating them into legislation. Congress can also use its budget, appropriations, and
oversight processes to incentivize executive branch agencies to act on our recommendations
and monitor their progress. For example, Congress can hold hearings focused on SBA’s
progress in implementing GAO’s priority recommendations, withhold funds when appropriate, or
take other actions to provide incentives for agencies to act. Moreover, Congress could follow up
during the appropriations process and request periodic updates. Congress also plays a key role
in addressing any underlying issues related to the implementation of these recommendations.
For example, Congress could pass legislation providing an agency explicit authority to
implement a recommendation or requiring an agency to take certain actions to implement a
recommendation.



9GAO, High-Risk Series: Efforts Made to Achieve Progress Need to be Maintained and Expanded to Fully Address

All Areas, GAO-23-106203 (Washington, D.C.: Apr. 20, 2023).
10With regard to cybersecurity, we also urge you to use foundational risk-management practices for supply chains set

forth in our December 2020 report: GAO, Information Technology: Federal Agencies Need to Take Urgent Action to
Manage Supply Chain Risks, GAO-21-171 (Washington, D.C.: Dec. 15, 2020).
11GAO, High-Risk Series: Key Practices to Successfully Address High-Risk Areas and Remove Them from the List,

GAO-22-105184 (Washington, D.C.: Mar. 3, 2022).
12James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, Pub. L. No. 117-263, § 7211(a)(2), 136

Stat. 2395, 3668 (2022); H.R. Rep. No. 117-389 (2022) (accompanying Legislative Branch Appropriations Act, H.R.
8237, 117th Cong. (2022)).



Page 4                                                        GAO-23-106377 SBA Priority Recommendations
  Copies of this report are being sent to the Director of the Office of Management and Budget and
  the appropriate congressional committees. In addition, the report will be available on the GAO
  website at http://www.gao.gov.

  I appreciate SBA’s continued commitment to these important issues. If you have any questions
  or would like to discuss any of the issues outlined in the letter, please do not hesitate to contact
  me or Daniel Garcia-Diaz, Managing Director, Financial Markets and Community Investment, at
  (202) 512-8678 or garciadiazd@gao.gov. Contact points for our Offices of Congressional
  Relations and Public Affairs may be found on the last page of this report. Our teams will
  continue to coordinate with your staff on all 45 open recommendations, as well as those
  additional recommendations in the high-risk areas for which SBA has a leading role. Thank you
  for your attention to these matters.

  Sincerely yours,




  Gene L. Dodaro
  Comptroller General of the United States

  Enclosure

cc:   The Honorable Shalanda Young, Director, Office of Management and Budget
      Arthur Plews, Chief of Staff
      Kate Aaby, Associate Administrator, Office of Performance, Planning, and the Chief
        Financial Officer
      Erica Gaddy, Deputy Chief Financial Officer, Office of Performance, Planning, and
           the Chief Financial Officer
      Steve Kucharski, Acting Chief Information Officer, Office of the Chief Information Officer
      Peggy Delinois Hamilton, Special Counsel for Enterprise Risk
      Patrick Kelley, Associate Administrator, Office of Capital Access
      Francisco Sanchez Jr., Associate Administrator, Office of Disaster Recovery & Resilience
      Gabriel Esparza, Associate Administrator, Office of International Trade




  Page 5                                                GAO-23-106377 SBA Priority Recommendations
Enclosure

Priority Open Recommendations to the Small Business Administration (SBA)


Improving oversight and communication for COVID-19 pandemic response

COVID-19: Sustained Federal Action Is Crucial as Pandemic Enters Its Second Year. GAO-21-
387. Washington, D.C.: March 31, 2021.

Year Recommendation Made: 2021

Recommendation: The Administrator of the Small Business Administration should develop a
strategy that outlines specific actions to address assessed fraud risks in the Economic Injury
Disaster Loan (EIDL) program on a continuous basis.

Action Needed: SBA agreed with this recommendation, stating that it would work to ensure
continuous monitoring of fraud risks. Although SBA created an action plan for fraud risk
management and other review and oversight plans, as of February 2023 it had not developed a
fraud risk management strategy for EIDL that meets the criteria in our Fraud Risk Framework.
For example, the plans and summary documents SBA provided do not establish clear timelines
for implementing risk-management activities or communicating antifraud strategies to
employees and other stakeholders. To fully implement this recommendation, SBA would have to
develop a strategy that meets the framework’s criteria. Doing so would help the agency better
identify and manage fraud risks for EIDL and inform future emergency lending and grant
programs.

Recommendation: The Administrator of the Small Business Administration should develop a
strategy that outlines specific actions to monitor and manage fraud risks in the Paycheck
Protection Program (PPP) on a continuous basis.

Action Needed: SBA agreed with this recommendation, stating that it would work to ensure that
fraud risks were monitored continuously. Although SBA created an action plan for fraud risk
management and other review and oversight plans, as of February 2023 it had not developed a
risk-management strategy for PPP that meets criteria in our Fraud Risk Framework. For
example, various plans and summary documents SBA provided do not establish clear timelines
for implementing such activities or communicate PPP antifraud strategies to employees and
other stakeholders. To fully implement this recommendation, SBA would have to develop a
strategy that meets the framework’s criteria. Doing so would help the agency identify and better
manage fraud risks for PPP and inform future emergency lending programs.

High-Risk Area: Emergency Loans for Small Businesses
Director: William B. Shear, Financial Markets and Community Investment
Contact Information: shearw@gao.gov or (202) 512-8678


Economic Injury Disaster Loan Program: Additional Actions Needed to Improve Communication
with Applicants and Address Fraud Risks. GAO-21-589. Washington, D.C.: July 30, 2021.

Year Recommendation Made: 2021



Page 6                                              GAO-23-106377 SBA Priority Recommendations
Recommendation: The Associate Administrator of SBA's Office of Disaster Assistance should
develop a comprehensive strategy for communicating with potential and actual program
applicants in the event of a disaster. Such a strategy should provide guidelines for the types of
information and timing of information to be provided to program participants throughout a
disaster. The types of information to be addressed in the strategy could include processing
steps and time frames applicants might experience through different stages of the loan process.

Action Needed: SBA agreed with the recommendation and stated the agency planned to
develop a comprehensive strategy for communicating with potential and actual disaster loan
applicants, including about loan processing steps and time frames. In February 2023, SBA
stated that the development of a new disaster loan application portal had been underway since
early 2022. SBA stated the new portal would include improved messaging features that permit
applicants to receive immediate status updates and to submit questions to loan processing
teams on a safe and secure portal versus communicating through emails. SBA did not provide a
time frame for implementation of the portal. To fully implement this recommendation, SBA would
have to complete the implementation of this portal, as well as provide documentation of a
comprehensive strategy for communicating with potential and actual disaster loan applicants.
Such efforts to enhance communication would help reduce applicant confusion and lessen the
burden on SBA’s resources to address this confusion.

High-Risk Area: Emergency Loans for Small Businesses
Director: William B. Shear, Financial Markets and Community Investment
Contact Information: shearw@gao.gov or (202) 512-8678


Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. GAO-22-105442.
Washington, D.C.: July 14, 2022.

Year Recommendation Made: 2022

Recommendation: The Associate Administrator for the Office of Capital Access should develop
and implement data analytics across Restaurant Revitalization Fund (RRF) awards as a means
to detect potentially fraudulent award recipients.

Action Needed: SBA partially agreed with this recommendation. In January 2023, SBA
indicated it planned to execute data analytics across the RRF portfolio and report on the results
by March 2023. SBA also indicated the Office of Financial Program Operations planned to
incorporate the results of its data analytics report into its post-award review procedures. To fully
implement this recommendation, SBA would have to complete this review and implement the
results. Doing so would help the agency more effectively detect potential fraud in the program.

Recommendation: The Associate Administrator for the Office of Capital Access should
develop, document, and implement procedures to use enforcement data on suspected fraud in
other SBA programs, such as PPP, to identify potential fraud in RRF recipients.

Action Needed: SBA disagreed with this recommendation, indicating its current process
already addresses the intent of the recommendation. According to SBA, as of January 2023, the
agency was already reviewing RRF awards that have a flagged PPP loan to confirm eligibility
and compliance with use of funds requirements. To fully implement this recommendation, SBA
would have to provide documentation of its efforts, including documentation that it used law
enforcement data. Doing so would allow the RRF program to leverage enforcement data from


Page 7                                                GAO-23-106377 SBA Priority Recommendations
other SBA programs so that the Office of Capital Access could more effectively identify potential
fraud among RRF recipients.

Recommendation: The Associate Administrator for the Office of Capital Access should develop
and implement a plan to respond to potentially fraudulent and ineligible RRF awards in a prompt
and consistent manner. This plan should include coordinating with the SBA Office of Inspector
General (OIG) to align efforts to address fraud.

Action Needed: SBA disagreed with this recommendation. In January 2023, SBA stated the
agency routinely responds to document requests from enforcement agencies and follows
standard operating procedures to refer suspicious activity to the SBA OIG. To fully implement
this recommendation, SBA would have to develop and implement a plan to respond to
potentially fraudulent and ineligible awards promptly, rather than wait until award recipients
certified they spent their entire award or submitted their final use-of-funds report. Furthermore,
SBA would need to provide documentation of procedures for referring suspicious activity to its
OIG. Addressing this recommendation would allow SBA to recover funds from potentially
fraudulent or ineligible award recipients in a timely manner and help ensure the efficient use of
OIG resources.

Potential Financial Benefit If Implemented: Millions of dollars
Director: William B. Shear, Financial Markets and Community Investment
Contact Information: shearw@gao.gov or (202) 512-8678



Enhancing disaster recovery efforts

Small Business Administration: Disaster Loan Processing Was Timelier, but Planning
Improvements and Pilot Program Evaluation Needed. GAO-20-168. Washington, D.C.: February
7, 2020.

Year Recommendation Made: 2020

Recommendation: The Associate Administrator for the Office of Disaster Assistance should
identify and document risks associated with its disaster response and plans to mitigate these
risks in its disaster planning documentation.

Action Needed: SBA agreed with the recommendation. SBA noted that relevant agency offices
would collaborate to identify and document known risks associated with SBA's disaster
response and implement a risk-informed approach to its direct response and recovery
operations. According to SBA, the agency has been meeting regularly with its Office of
Continuous Operations and Risk Management, and expects to fully incorporate regional risks in
its 2023 Disaster Preparedness and Recovery Plan. This effort was ongoing as of February
2023. To fully implement this recommendation, SBA would have to complete its efforts to
identify and incorporate risks into its Disaster Preparedness and Recovery Plan and other
relevant planning documentation. Doing so would help SBA better respond to challenges that
arise during its disaster response efforts.

Director: William B. Shear, Financial Markets and Community Investment
Contact Information: shearw@gao.gov or (202) 512-8678



Page 8                                               GAO-23-106377 SBA Priority Recommendations
Disaster Recovery: Additional Actions Needed to Identify and Address Potential Recovery
Barriers. GAO-22-104039. Washington, D.C.: December 15, 2021.

Year Recommendation Made: 2022

Recommendation: The SBA Associate Administrator of the Office of Disaster Assistance
should, in coordination with the Federal Emergency Management Agency (FEMA) Administrator
and the Housing and Urban Development (HUD) Assistant Secretary for Community Planning
and Development, develop, with input from key recovery partners, and implement an
interagency plan to help ensure the availability and use of quality information that includes (1)
information requirements, (2) data sources and methods, and (3) strategies for overcoming
information challenges—to support federal agencies involved in disaster recovery in identifying
access barriers or disparate outcomes.

Action Needed: SBA agreed with this recommendation. In March 2023, SBA officials told us
that they hold monthly, interagency meetings with officials from FEMA and HUD to assess and
overcome privacy data-sharing constraints across agencies directly serving disaster survivors.
SBA officials also told us that their Office of Capital Access has been formalizing a process to
map information requirements and strategies for overcoming data-related challenges. As of April
2022, SBA began collecting voluntarily provided demographic information from disaster loan
applications, which would improve the availability of demographic data about loan applicants.
However, to fully address the recommendation, SBA (with FEMA and HUD) would need to
develop and implement a documented, interagency plan that specifies the data needed, and
sources and methods for obtaining the data. Such a plan would help SBA identify and address
potential access barriers in its own programs and across federal programs.

Recommendation: The SBA Associate Administrator of the Office of Disaster Assistance
should coordinate with the FEMA Administrator and the HUD Assistant Secretary for
Community Planning and Development to design and establish routine processes to be used
within and across federal recovery programs to address identified access barriers and disparate
outcomes on an ongoing basis.

Action Needed: SBA agreed with this recommendation. In March 2023, SBA officials told us
they participate in a subgroup of the Recovery Support Function Leadership Group that is
focused on equity in federal recovery efforts. SBA officials also said that SBA, FEMA, and HUD
have committed to providing technical assistance to federal agencies involved in disaster
recovery to build tools that would allow them to share and use data to support their equity
efforts. To fully implement this recommendation, SBA needs to provide evidence it has designed
and institutionalized routine processes within and across federal recovery programs to address
identified access barriers and disparate outcomes on an ongoing basis. Without routine
processes, disaster recovery programs lack a mechanism to ensure they can address any
potential access barriers or disparate outcomes they might identify, particularly if those barriers
or disparate outcomes arise from the interaction between or among programs.

Director: Chris P. Currie, Homeland Security and Justice
Contact Information: curriec@gao.gov or (404) 679-1875




Page 9                                               GAO-23-106377 SBA Priority Recommendations
Improving export promotion operations

Export Promotion: Small Business Administration Needs to Improve Collaboration to Implement
Its Expanded Role. GAO-13-217. Washington, D.C.: January 30, 2013.

Year Recommendation Made: 2013

Recommendation: To more effectively implement SBA's expansion of Office of International
Trade field staff as required by the Small Business Jobs Act of 2010, the Administrator of SBA
should update SBA's plan for additional Office of International Trade staff to include funding
sources and time frames, as well as possible efficiencies from clearly defining roles and
responsibilities and leveraging other entities' export assistance resources.

Action Needed: SBA agreed with this recommendation. As of January 2023, SBA said the
Office of International Trade had 23 Export Finance Manager positions filled. The office reported
it increased the number of exporters and lenders receiving export counseling and training in
each of the past 2 years by leveraging technology. As a result, and drawing on its own analysis
and factoring in consolidation of the banking sector into regional and national lenders, the Office
of International Trade believes that the current number adequately fills the export finance needs
of small businesses across the country. However, SBA remains seven positions short of the
statutory requirement. To fully implement this recommendation, SBA would need to expand the
Office’s field staff to 30 specialists. Doing so would expand its export finance program and allow
the agency to meet statutory requirements.

Director: Kimberly Gianopoulos, International Affairs and Trade
Contact Information: gianopoulosk@gao.gov or (202) 512-8612


Addressing cybersecurity challenges

Privacy: Dedicated Leadership Can Improve Programs and Address Challenges. GAO-22-
105065. Washington, D.C.: September 22, 2022.

Year Recommendation Made: 2022

Recommendation: The Administrator of SBA should fully define and document a process for
ensuring that the senior agency official for privacy or other designated privacy official is involved
in assessing and addressing the hiring, training, and professional development needs of the
agency with respect to privacy.

Action Needed: SBA agreed with our recommendation and stated it was developing plans to
address it as of February 2023. To fully implement the recommendation, SBA needs to
complete and implement those plans. Fully implementing the recommendation would help the
agency more consistently and effectively identify staffing needs and ensure a well-qualified
privacy workforce.

Director: Jennifer Franks, Information Technology and Cybersecurity, Center for Enhanced
Cybersecurity
Contact Information: franksj@gao.gov or (404) 679-1831
Director: Marisol Cruz Cain, Information Technology and Cybersecurity
Contact Information: cruzcainm@gao.gov or (202) 512-5017



Page 10                                               GAO-23-106377 SBA Priority Recommendations
Meeting reporting requirements in a more timely manner

Small Business Research Programs: Reporting on Award Timeliness Could Be Enhanced.
GAO-23-105591. Washington, D.C.: October 12, 2022.

Year Recommendation Made: 2023

Recommendation: The Administrator of the Small Business Administration should develop,
document, and execute a plan to (1) identify actions that could improve timely publication of its
annual report to Congress, and (2) implement the actions identified.

Action Needed: SBA agreed with this recommendation. As of April 2023, SBA stated that it
assessed and made changes to its data-gathering process for the annual report and planned to
complete a more robust assessment to identify further actions to improve the timeliness of
report publication. To fully implement the recommendation, SBA would need to complete its
assessment and implementation of changes and provide documentation to this effect. Fully
implementing this recommendation would help Congress oversee agencies’ Small Business
Innovation Research and Small Business Technology Transfer awards.

Director: Candice Wright, Science, Technology Assessment, and Analytics
Contact Information: WrightC@gao.gov or (202) 512-6888



Small Business Administration: Recent Changes to the 8(a) Program's Financial Thresholds
Need Evaluation. GAO-22-104512. Washington, D.C.: August 30, 2022.

Year Recommendation Made: 2022

Recommendation: The Associate Administrator of SBA's Office of Government Contracting
and Business Development should assess the process for producing Section 408 reports in light
of identified delay-causing factors and use the results of the analysis to identify potential
operational efficiencies and develop a plan to address report delays, including revising
procedures as needed and developing time frames for report submission.

Action Needed: SBA agreed with this recommendation. In March 2023, SBA stated that it had
assessed the Section 408 report process to determine how it can be revised to reduce or
eliminate reporting delays. SBA also stated that it planned to document the procedures for the
Section 408 report process by late June 2023. To fully implement this recommendation, SBA
would need to provide documentation of its assessment, its plans to address report delays, and
Section 408 procedures. Fully implementing this recommendation would facilitate report
production, help SBA meet its statutory responsibilities, and give Congress more timely
information to inform its decision-making and oversight.

Director: William B. Shear, Financial Markets and Community Investment
Contact Information: shearw@gao.gov or (202) 512-8678




Page 11                                              GAO-23-106377 SBA Priority Recommendations
This is a work of the U.S. government and is not subject to copyright protection in the
United States. The published product may be reproduced and distributed in its entirety
without further permission from GAO. However, because this work may contain
copyrighted images or other material, permission from the copyright holder may be
necessary if you wish to reproduce this material separately.
                         The Government Accountability Office, the audit, evaluation, and investigative
GAO’s Mission            arm of Congress, exists to support Congress in meeting its constitutional
                         responsibilities and to help improve the performance and accountability of the
                         federal government for the American people. GAO examines the use of public
                         funds; evaluates federal programs and policies; and provides analyses,
                         recommendations, and other assistance to help Congress make informed
                         oversight, policy, and funding decisions. GAO’s commitment to good government
                         is reflected in its core values of accountability, integrity, and reliability.

                         The fastest and easiest way to obtain copies of GAO documents at no cost is
Obtaining Copies of      through our website. Each weekday afternoon, GAO posts on its website newly
GAO Reports and          released reports, testimony, and correspondence. You can also subscribe to
                         GAO’s email updates to receive notification of newly posted products.
Testimony
Order by Phone           The price of each GAO publication reflects GAO’s actual cost of production and
                         distribution and depends on the number of pages in the publication and whether
                         the publication is printed in color or black and white. Pricing and ordering
                         information is posted on GAO’s website, https://www.gao.gov/ordering.htm.
                         Place orders by calling (202) 512-6000, toll free (866) 801-7077, or
                         TDD (202) 512-2537.
                         Orders may be paid for using American Express, Discover Card, MasterCard,
                         Visa, check, or money order. Call for additional information.

                         Connect with GAO on Facebook, Flickr, Twitter, and YouTube.
Connect with GAO         Subscribe to our RSS Feeds or Email Updates. Listen to our Podcasts.
                         Visit GAO on the web at https://www.gao.gov.

                         Contact FraudNet:
To Report Fraud,
                         Website: https://www.gao.gov/about/what-gao-does/fraudnet
Waste, and Abuse in
                         Automated answering system: (800) 424-5454 or (202) 512-7700
Federal Programs
                         A. Nicole Clowers, Managing Director, ClowersA@gao.gov, (202) 512-4400, U.S.
Congressional            Government Accountability Office, 441 G Street NW, Room 7125, Washington,
Relations                DC 20548

                         Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800
Public Affairs           U.S. Government Accountability Office, 441 G Street NW, Room 7149
                         Washington, DC 20548

                         Stephen J. Sanford, Managing Director, spel@gao.gov, (202) 512-4707
Strategic Planning and   U.S. Government Accountability Office, 441 G Street NW, Room 7814,
External Liaison         Washington, DC 20548




                            Please Print on Recycled Paper.


File and source

File

gao-23-106377.pdf

Size

320,899 bytes

SHA-256

47b143e8e023017927b4a722709a8e7f1ad3bd17ae7ffc6d24681a8294e4acdb

Our copy

gao-23-106377.pdf

Original

www.gao.gov