GAO-24-107299: Priority Open Recommendations: Small Business Administration

Summary

A letter from the Comptroller General to Small Business Administration Administrator Isabel Casillas Guzman, dated May 31, 2024 (GAO-24-107299), on SBA's priority open recommendations. It states that as of May 1, 2024 SBA had 31 open recommendations and that SBA implemented four of the 13 open priority recommendations since the May 2023 letter. These include fraud risk strategies for the Paycheck Protection Program and the Economic Injury Disaster Loan Program finalized in August 2023, and data analytics to identify potentially fraudulent Restaurant Revitalization Fund (RRF) recipients. GAO adds four new priority recommendations related to pandemic response, statutory reporting requirements and veteran-owned small businesses, bringing the total to 13 in six areas.

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




May 31, 2024


The Honorable Isabel 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
personal attention to areas where open recommendations should be given high priority. 1 In
November 2023, we reported that, on a government-wide basis, 75 percent of our
recommendations made 4 years ago were implemented. 2 SBA’s recommendation
implementation rate was 100 percent for recommendations made 4 years ago. 3 As of May 1,
2024, SBA had 31 open recommendations. Fully implementing these open recommendations
could significantly improve agency operations.

In our May 2023 letter to SBA, we noted that 13 of the open recommendations were priority
recommendations. Since that time, SBA implemented four of the 13 open priority
recommendations:

•   In August 2023, SBA finalized fraud risk strategies for the Paycheck Protection Program and
    the Economic Injury Disaster Loan Program that identified approaches—such as the use of
    data analytics—to prevent, detect, and respond to instances of active and potential fraud.
    This addressed two priority recommendations from our March 2021 report on these




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 2023, GAO-24-900483 (Washington, D.C.: Nov. 15, 2023).

3In the letters we issued in 2021, 2022, and 2023, we reported SBA’s implementation rate was 100 percent. See

GAO, Priority Open Recommendations: Small Business Administration, GAO-23-106377 (Washington, D.C.: May 15,
2023); Priority Open Recommendations: Small Business Administration, GAO-22-105566 (Washington, D.C.: June 3,
2022); and Priority Open Recommendations: Small Business Administration, GAO-21-503PR (Washington, D.C.:
June 2, 2021).

Page 1                                                        GAO-24-107299 SBA Priority Recommendations
    programs. 4 These actions will help SBA better identify and manage fraud risks and inform its
    administration of future emergency lending and grant programs.

•   SBA conducted data analytics for the Restaurant Revitalization Fund (RRF) program (for
    instance, cross-checking RRF recipient data against data for other SBA pandemic relief
    programs) to identify potentially fraudulent recipients. SBA also used enforcement data,
    including from the Department of Justice, on suspected fraud in other SBA programs, to
    identify and flag potentially fraudulent RRF awards. These actions addressed two of the
    priority recommendations from our July 2022 report and also will help SBA better identify
    and manage fraud risks. 5

We ask for your continued attention to the remaining nine priority recommendations. We are
also adding four new priority recommendations, which are related to pandemic response,
statutory reporting requirements, and veteran-owned small businesses. This brings the total
number of priority recommendations to 13. (See the Enclosure for the list of recommendations.)

The 13 priority recommendations fall into the following six 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. Our work since June 2020 has identified
fraud schemes, improper payments, and risks in SBA’s pandemic relief programs.

We identified four priority recommendations in this area. First, we recommended that SBA
develop 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. This would
help reduce applicant confusion and uncertainty regarding, for example, application processes
and time frames. Second, we recommended that SBA develop and implement a plan to
promptly and consistently respond to potentially fraudulent and ineligible RRF awards and align
its efforts with SBA’s Office of Inspector General. This would help SBA recover potentially
millions of dollars. Third, we recommended that SBA put mechanisms in place and use them to
facilitate cross-program data analytics. This would help SBA strategically manage fraud risks.
Fourth, we recommended that SBA identify and plan to use external sources of data to help
verify applicant information. This would help SBA detect potential fraud across programs and
strategically manage fraud risks.

Fully implementing these recommendations would improve SBA’s ability to safeguard billions of
taxpayer dollars, provide assistance to businesses, and prepare to implement future emergency
lending or grant programs.

Enhancing disaster recovery efforts. Disasters affect numerous communities and cause
billions of dollars of damage. Some communities, such as low-income ones, also may face
barriers in accessing federal recovery assistance. We identified three priority recommendations
to SBA in this area. First, we recommended that SBA document risks associated with disaster



4GAO, COVID-19: Sustained Federal Action Is Crucial as Pandemic Enters Its Second Year, GAO-21-387

(Washington, D.C.: Mar. 31, 2021).
5GAO, Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight, GAO-22-105442 (Washington,

D.C.: July 14, 2022).


Page 2                                                     GAO-24-107299 SBA Priority Recommendations
response and plan to mitigate these risks. This would help improve SBA’s ability to respond to
challenges that arise during recovery operations, such as extended power outages.
Second, we recommended that SBA implement an interagency plan to identify access barriers
or disparate outcomes for affected communities and individuals, including for vulnerable
populations such as low-income households. Third, we recommended that SBA coordinate with
other agencies, such as the Federal Emergency Management Agency, to establish processes
that address the barriers and disparate outcomes. These two actions would help the agency
more equitably serve disaster survivors. Fully implementing these three recommendations
would improve SBA’s ability to assist affected communities.
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 goods and
services abroad. Our priority recommendation in this area calls for SBA to increase the number
of Office of International Trade field staff, as required by the Small Business Jobs Act of 2010.
Fully implementing this recommendation would allow the agency to meet the Act’s requirements
and help it 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 used to collect it highlight the importance of strong programs for ensuring privacy
protections. Our priority recommendation in this area calls for SBA to fully define and document
a process for ensuring its privacy official is involved in assessing and addressing the agency’s
hiring, training, and professional development needs in relation to privacy protections. 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 statutory responsibilities and inform congressional
decision-making and oversight. We identified three priority recommendations in this area. First,
we recommended that SBA assess and address delays in annual reporting for the 8(a)
Business Development program. Second, we recommended that SBA improve the timeliness of
its annual reports to Congress on the Small Business Innovation Research and Small Business
Technology Transfer programs. Third, we recommended that SBA establish procedures to
comply with annual reporting requirements to Congress on the needs of veteran-owned small
businesses. Fully implementing these three recommendations would allow the agency to meet
its statutory responsibilities and provide more timely information that would aid congressional
oversight of the programs.

Supporting veteran-owned small businesses. Veteran entrepreneurs—particularly those who
relocated to a new area after military service—may face challenges in accessing capital for their
ventures, establishing credit, and developing business relationships. SBA is statutorily required
to give special consideration to veterans in carrying out its lending programs. Our priority
recommendation in this area calls for SBA to develop and implement measures to ensure it
gives special consideration to veterans in its lending programs. Fully implementing this
recommendation would help SBA better meet the needs of veteran-owned small businesses.

                                           - - - - -
As the auditor of the consolidated financial statements of the U.S. government, I have
noticed that the Small Business Administration was unable to receive an audit opinion
on its fiscal years 2020 through 2023 financial statements. SBA’s auditor reported

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several material weaknesses in internal control in fiscal years 2020 through 2023
related to SBA’s COVID-19 relief programs. These limitations on the audit opinion and
underlying internal control weaknesses, as well as related auditor recommendations,
are important issues and I encourage you to address them.

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. 6 Two of our high-risk areas—emergency loans
for small businesses and ensuring the cybersecurity of the nation—apply directly to
SBA.

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

In addition to SBA’s high-risk areas, we urge your continued attention to the 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, the Office of Management and Budget
(OMB), 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. 7

We also recognize the key role Congress plays in providing oversight and maintaining focus on
our recommendations to ensure they are implemented and produce their desired results.
Legislation enacted in December 2022 included 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. 8

Congress can use various strategies to address 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 can follow up during the
appropriations process and request periodic updates.



6GAO, 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).

7GAO, 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).
8James 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)).




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Congress also plays a key role in addressing any underlying issues related to the
implementation of these recommendations. For example, Congress can pass legislation
providing an agency explicit authority to implement a recommendation or requiring an agency to
take certain actions to implement a recommendation.

Copies of this report are being sent to the Director of OMB and the appropriate congressional
committees. In addition, the report will be available on the GAO website at Priority Open
Recommendation Letters | U.S. GAO.

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 this 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 31 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,




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

         David Brown, Director of Policy and Planning, Office of the Administrator

         Kate Aaby, Associate Administrator and Chief Financial Officer, Office of Performance,
             Planning, and the Chief Financial Officer

         Deborah Chen, Deputy Chief Financial Officer, Office of Performance, Planning, and the
            Chief Financial Officer

         Anna Calcagno, Director, Office of Strategic Management and Enterprise Integrity,
            Office of Performance, Planning, and the Chief Financial Officer

         Walter B. Hill, Jr., Chief Risk Officer, Director, Office of Enterprise Integrity, Office of
             Strategic Management and Enterprise Integrity, Office of Performance, Planning,
             and the Chief Financial Officer


Page 5                                                  GAO-24-107299 SBA Priority Recommendations
         Steve Kucharski, Acting Chief Information Officer, Office of the Chief Information Officer

         Katie Frost, Associate Administrator, Office of Capital Access

         Francisco Sanchez Jr., Associate Administrator, Office of Disaster Recovery and
             Resilience

         Daniel Krupnick, Associate Administrator, Office of International Trade

         Jackie Robinson-Burnette, Associate Administrator, Office of Government Contracting
              and Business Development

         Richard Vogler, GAO Liaison, Office of Enterprise Integrity, Office of Strategic
              Management and Enterprise Integrity, Office of Performance, Planning, and the
              Chief Financial Officer




Page 6                                                GAO-24-107299 SBA Priority Recommendations
Enclosure

Priority Open Recommendations to the Small Business Administration



Improving Oversight and Communication for COVID-19 Pandemic Response

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

Recommendation: The Associate Administrator of the Small Business Administration’s (SBA)
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.

Actions Needed: SBA agreed with the recommendation. SBA officials told us in February 2023
the agency had started developing a new disaster loan application portal that would include
improved messaging features, such as immediate status updates. In March 2024, SBA stated
that the agency anticipated completing the project by fiscal year 2025.

To fully implement this recommendation, SBA would have to complete and launch the portal
and 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 (for example, about application processes) and lessen the burden on SBA’s
resources to address this confusion.

Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@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 a plan to respond to potentially fraudulent and ineligible Restaurant
Revitalization Fund 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.

Actions Needed: SBA disagreed with this recommendation. SBA indicated that its planned
efforts were sufficient. However, in April 2024, SBA stated that it had prioritized reviewing
awards flagged for potential fraud and conducted initial reviews of all flagged awards for which
recipients submitted post-award reports.



Page 7                                              GAO-24-107299 SBA Priority Recommendations
To fully implement this recommendation, SBA needs to document its plans and procedures for
prioritizing reviews of flagged awards. SBA also would need to develop procedures for referring
suspicious activity to its OIG in a manner that is useful to the OIG. Doing so would help 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
Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@gao.gov or (202) 512-8678


COVID Relief: Fraud Schemes and Indicators in SBA Pandemic Programs. GAO-23-105331.
Washington, D.C.: May 18, 2023.

Year Recommendations Made: 2023

Recommendation: The Administrator of SBA, in coordination with the Fraud Risk Management
Board, should ensure that SBA has mechanisms in place and utilizes them to facilitate cross-
program data analytics.

Actions Needed: SBA agreed with this recommendation. SBA officials told us in November
2023 that they had started a comprehensive review of fraud prevention and mitigation tools,
activities, and analytics. The review included information on internal and external data used for
fraud mitigation, any internally developed or externally procured tools, and any data-driven fraud
controls in place or planned. In addition, according to SBA, its Fraud Risk Management Board,
in conjunction with the relevant program offices, planned to develop policies related to cross-
program fraud data analytics. As of February 2024, SBA was developing these efforts.

To fully implement this recommendation, SBA would have to identify mechanisms for cross-
program data analytics and programs that utilize them. Implementing this recommendation
could help SBA enhance its data analytics and more strategically manage fraud risks in ongoing
and future programs.

Recommendation: The Administrator of SBA, in coordination with the Fraud Risk Management
Board, should ensure that SBA has identified external sources of data that can facilitate the
verification of applicant information and the detection of potential fraud across its programs. It
should then develop a plan for obtaining access to those sources, which may involve pursuing
statutory authority or entering into data-sharing agreements to obtain such access.

Actions Needed: SBA agreed with this recommendation. In November 2023, SBA officials told
us the agency had procured third-party services to help validate customer identity. They also
said they had engaged with other federal agencies on data sharing to improve SBA’s fraud risk-
management capabilities. As of February 2024, SBA was identifying data sources and
developing a plan to obtain access to external data.

To fully implement this recommendation, SBA would have to identify external data sources and
develop a plan for obtaining access to those sources. Implementing this recommendation could
help SBA enhance its data analytics and more strategically manage fraud risks in ongoing and
future programs.

High-Risk Area: Emergency Loans for Small Businesses

Page 8                                               GAO-24-107299 SBA Priority Recommendations
Managing Director: Johana Ayers, Forensic Audits and Investigative Service
Contact Information: ayersj@gao.gov or (202) 512-6722



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.

Actions Needed: SBA agreed with the recommendation. In February 2024, SBA provided an
updated Disaster Preparedness and Recovery Plan, which included an appendix that presents
the results of regional risk assessments and identifies hazards most likely to affect SBA disaster
recovery operations.

To fully implement this recommendation, SBA would need to provide documentation of efforts to
identify operational risks (such as those related to business continuity, business processes,
human capital, and technology) and information on SBA’s plans to mitigate the risks it identified.
Implementing this recommendation would help SBA better respond to challenges that arise
during its disaster response efforts.

Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@gao.gov or (202) 512-8678


Disaster Recovery: Additional Actions Needed to Identify and Address Potential Recovery
Barriers. GAO-22-104039. Washington, D.C.: December 15, 2021.

Year Recommendations 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.

Actions Needed: SBA agreed with this recommendation. SBA officials told us in February 2024
that they were working with FEMA and HUD to develop such an interagency plan and that it
should be completed by June 2024. SBA officials also noted that they were renewing
interagency agreements with FEMA and HUD to coordinate data sharing.


Page 9                                              GAO-24-107299 SBA Priority Recommendations
To fully implement this recommendation, SBA (with FEMA and HUD) would need to implement
the interagency plan, which includes specifying the data needed, and sources and methods for
obtaining the data. Implementing this recommendation would provide SBA (and the other
agencies) with more comprehensive information to identify potential social and institutional
barriers in their 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.

Actions Needed: SBA agreed with this recommendation. SBA officials told us in February 2024
that they were working with FEMA and HUD to develop such processes, which are to be
incorporated in a forthcoming interagency plan (described above). SBA officials also told us
about other steps they took to help address identified access barriers and disparate outcomes.
For example, they simplified the process for declaring disasters in rural communities under the
Disaster Assistance for Rural Communities Act and established Portable Loan Outreach
Centers that can be set up in hard-to-reach areas or ones with limited services.

To fully implement this recommendation, SBA would need to institutionalize the processes in
and across federal recovery programs. Having such processes would help ensure SBA could
address any identified access barriers or disparate outcomes, particularly those arising from the
interaction among federal recovery programs.

Director: Chris P. Currie, Homeland Security and Justice
Contact Information: curriec@gao.gov or (202) 512-8777



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.

Actions Needed: SBA agreed with this recommendation. As of December 2023, SBA officials
said the Office of International Trade had filled 23 of the 30 Export Finance Manager positions
required under the Small Business Jobs Act of 2010. According to SBA, the current number
adequately fills the export finance needs of small businesses due to SBA’s use of technology to
provide training and counseling to more exporters in the past 2 years and consolidation of the
industry. In March 2024, SBA submitted a legislative proposal to Congress to reduce the Act’s
requirement of 30 export finance specialists to 20 as part of its fiscal year 2025 Congressional
Budget Justification.

Page 10                                             GAO-24-107299 SBA Priority Recommendations
In the absence of a legislative change, SBA will remain seven positions short of the statutory
requirement. SBA would need to meet or change this requirement to fully implement this
recommendation. Addressing the recommendation would allow the agency to meet the Act’s
requirements and assist small business exporters.

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.

Actions Needed: SBA agreed with this recommendation. SBA officials told us in March 2023
that the agency was updating its Privacy Program Plan, which would, among other things,
delineate hiring, training, and professional development needs of the agency in relation to
privacy. SBA initially expected to implement this plan by the second quarter of 2024. In March
2024, SBA said changes in staffing and budget allocations led it to extend its implementation
timeline to the end of fiscal year 2024 using current staffing levels. SBA also described other
actions it took to bolster its privacy workforce.

To fully implement the recommendation, SBA needs to ensure that its updated Privacy Program
Plan defines how the senior agency official for privacy, or other designated privacy officials, are
involved in addressing related agency workforce needs. Fully implementing the
recommendation would help the agency more consistently and effectively identify staffing needs
and ensure a well-qualified privacy workforce.

High-Risk Area: Ensuring the Cybersecurity of the Nation
Director: Jennifer Franks, Center for Enhanced Cybersecurity, Information Technology and
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



Meeting Reporting Requirements in a More Timely Manner

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


Page 11                                               GAO-24-107299 SBA Priority Recommendations
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.

Actions Needed: SBA agreed with this recommendation. In March 2024, SBA stated it had
assessed the process to identify revisions that would reduce or eliminate reporting delays and
was working to document the procedures for producing Section 408 reports. SBA also stated it
had completed the fiscal year 2018 report and had drafted reports for fiscal years 2019–2022 for
Office of Management and Budget approval.

To fully implement this recommendation, SBA would need to provide documentation of its
reporting procedures, develop time frames for when the agency expected to submit the fiscal
year 2018–2023 reports to Congress, and begin to submit the report by the April 30 deadline.
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.

Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@gao.gov or (202) 512-8678


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.

Actions Needed: SBA agreed with this recommendation. In August 2023, SBA described steps
it was taking to implement it, including ensuring timely collection of agency award data,
conducting efforts to review all parts of the process, and holding a meeting with agency
representatives to discuss opportunities to streamline the annual report. In March 2024, SBA
officials stated that the agency had assessed processes for producing the annual report and
was working to publish the fiscal year 2023 report and outstanding reports for 2020–2022 by
September 30, 2024.

To fully implement the recommendation, SBA would have to document these processes and
consistently publish the annual report in a timely manner. Fully implementing this
recommendation would help SBA meet its statutory responsibilities and give Congress more
timely information to inform its decision-making and oversight.

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



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Small Business Administration: Procedures for Reporting on Veteran-Owned Businesses Need
Improvement. GAO-24-106071. Washington, D.C.: December 21, 2023.

Year Recommendation Made: 2024

Recommendation: The Administrator of SBA should ensure that the Associate Administrator of
SBA's Office of Veterans Business Development develop and implement policies and
procedures to ensure SBA's compliance with Section 603 of the Veterans Entrepreneurship and
Business Development Act of 1999.

Actions Needed: SBA agreed with this recommendation. In its comment letter on our
December 2023 report, SBA described plans to implement policies and procedures to submit an
annual report to congressional committees. To fully implement this recommendation, SBA would
have to develop and implement these policies and procedures. Doing so would help SBA meet
its statutory responsibilities and provide Congress with information needed to conduct effective
oversight of SBA programs.

Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@gao.gov or (202) 512-8678



Supporting Veteran-Owned Small Businesses

Small Business Administration: Procedures for Reporting on Veteran-Owned Businesses Need
Improvement. GAO-24-106071. Washington, D.C.: December 21, 2023.

Year Recommendation Made: 2024

Recommendation: The Administrator of SBA should ensure that the Associate Administrator of
SBA's Office of Capital Access develop and implement policies and procedures to ensure SBA
gives special consideration to veterans in its lending programs in accordance with the Small
Business Act and SBA's implementing regulation.

Actions Needed: SBA agreed with this recommendation. In its comment letter on our
December 2023 report, SBA described incorporating specific guidance on giving special
consideration to veterans in its lending platform and standard operating procedures. To fully
implement this recommendation, SBA would have to complete these efforts to develop and
incorporate policies related to veterans. Doing so would help ensure that SBA complies with the
statutory requirement and provide better assurance that veterans receive the special
consideration they are due.

Acting Director: Courtney LaFountain, Financial Markets and Community Investment
Contact Information: lafountainc@gao.gov or (202) 512-8678




Page 13                                            GAO-24-107299 SBA Priority Recommendations
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