SBA’s Office of Inspector General and Its Relationship with Congress: In Brief (R49123, August 10, 2026)

Summary

This Congressional Research Service report, R49123, "SBA's Office of Inspector General and Its Relationship with Congress: In Brief," by R. Corinne Blackford, is dated August 10, 2026. It states that the SBA OIG was created under the Inspector General Act of 1978 to audit and investigate SBA programs, recommend policies to prevent and detect fraud and abuse, and keep the SBA administrator and Congress informed. The report says the SBA OIG reported that, between FY2020 and FY2025, its work with SBA, the U.S. Secret Service and others assisted in recovering more than $30 billion in improper PPP and COVID-19 EIDL payments. It covers the office's funding, staffing and relationship with Congress.

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“SBA’s Office of Inspector General and Its Relationship with Congress: In Brief (R49123, August 10, 2026).” Original at www.congress.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/r49123-1-91e9fc903b/, SHA-256 dc13d0574db7ee3a0adc02f1abe5ef24100da73992c0ebbfe1050511cc202a9e.

Full text

SBA’s Office of Inspector General and Its
Relationship with Congress: In Brief

August 10, 2026

Congressional Research Service
https://crsreports.congress.gov
R49123
SUMMARY

R49123
SBA’s Office of Inspector General and Its
August 10, 2026
Relationship with Congress: In Brief R. Corinne Blackford
Offices of the Inspector General (OIGs) exist in more than 70 federal agencies, including all Analyst in Small Business
Cabinet departments and larger agencies, numerous boards and commissions, and other entities. and Economic
Together, OIGs and the Government Accountability Office (GAO) provide Congress with Development Policy
information and analysis to conduct oversight and, in the process, help Congress maintain its
balance of power with the presidency. As with other OIGs, the U.S. Small Business
Administration’s Office of Inspector General (SBA OIG) was created under authority of the
Inspector General Act of 1978 (P.L. 95-452, as amended). Its three primary statutory purposes
are to:

• conduct and supervise audits and investigations of the SBA’s programs and operations;
• recommend policies designed to promote the economy, efficiency, and effectiveness of the SBA’s
programs and operations and to prevent and detect fraud and abuse; and
• keep both the SBA administrator and Congress “fully and currently informed about problems and
deficiencies relating to the administration of such programs and operations and the necessity for and
progress of corrective action.”
During FY2025, the SBA OIG issued 25 audit reports containing 123 recommendations for improving SBA’s programs and
operations, and its investigations resulted in 234 indictments and 221 convictions. For example, the SBA OIG continues to
provide oversight of SBA’s pandemic assistance programs, such as the Paycheck Protection Program (PPP) and COVID-19
Economic Injury Disaster Loan (EIDL) program. Although SBA appropriations have typically hovered near $1 billion
annually, they surged to a high of more than $761.9 billion in FY2020. Between FY2020 and FY2025, the SBA OIG reported
that its collaboration with SBA, the U.S. Secret Service, and other federal agencies and financial institutions assisted in the
recovery of more than $30 billion in improper payments of PPP and COVID-19 EIDL funds.

This report provides an overview of the SBA OIG’s statutory authorities, reporting requirements, funding, staffing and
organizational structure and recent activities, including those related to COVID-19 pandemic program oversight. It also
examines the reported monetary savings in SBA programs and operations as a result of the SBA OIG’s work, and it
concludes with observations concerning the SBA OIG’s relationship with Congress. Issues of congressional interest may
include funding and staffing capacity, independence and transparency of fraud audits and investigations, and oversight tasks
related to SBA’s pandemic-era programs.

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SBA’s Office of Inspector General and its Relationship with Congress

Contents
Introduction to Offices of Inspector General ................................................................................... 1
Duties and Responsibilities ....................................................................................................... 1
Separate Funding....................................................................................................................... 1
SBA’s OIG and IGs ......................................................................................................................... 2
Recent SBA IGs ........................................................................................................................ 3
SBA OIG Funding ..................................................................................................................... 3
SBA OIG’s Recent Activities .......................................................................................................... 5
Continued Pandemic Program Oversight .................................................................................. 5
Audit Reports ............................................................................................................................ 5
Investigations, Indictments and Convictions ............................................................................ 6
Monetary Savings and Recoveries ............................................................................................ 7
Recommendations Concerning the Impact of Legislation and Regulations ............................. 8
Report on the Most Serious Management and Performance Challenges Facing the
SBA ........................................................................................................................................ 9
SBA OIG’s Relationship with Congress.......................................................................................... 9
SBA Oversight Issues of Congressional Concern ................................................................... 10
Continuity of Pandemic Program Oversight ..................................................................... 10
Integrity of Contracting Program Oversight ..................................................................... 10

Tables
Table 1. Small Business Administration Office of Inspector General (SBA OIG)
Appropriations, FY2015-FY2026 ................................................................................................ 4
Table 2. Small Business Administration Office of Inspector General (SBA OIG) Audits,
FY2015-FY2025 .......................................................................................................................... 6
Table 3. Small Business Administration Office of Inspector General (SBA OIG)
Investigations, FY2015-FY2025 .................................................................................................. 7
Table 4. Legislation, Regulations, Standard Operating Procedures (SOPs), and Other
Issuances Reviewed and Comments Provided, FY2015-FY2025 ................................................ 8

Table A-1. Small Business Administration Office of Inspector General (SBA OIG) Full-
Time Equivalent Employees, FY2015-FY2027 ......................................................................... 12
Table B-1. Small Business Administration Office of Inspector General (SBA OIG)
Outreach and Training Sessions, FY2015-FY2025 .................................................................... 14

Appendixes
Appendix A. SBA OIG Staffing and Organizational Structure ..................................................... 12
Appendix B. SBA OIG Training and Outreach ............................................................................. 14

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SBA’s Office of Inspector General and its Relationship with Congress

Contacts
Author Information........................................................................................................................ 14

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SBA’s Office of Inspector General and its Relationship with Congress

Introduction to Offices of Inspector General
In 1978, Congress passed the Inspector General Act of 1978 (IG Act, P.L. 95-452) to assist in
oversight of the executive branch. Inspectors general (IGs) lead offices of inspector general
(OIGs) that conduct various reviews of agency programs and operations—including audits,
investigations, inspections, and evaluations—and provide findings and recommendations to
improve them. Most OIGs, including the U.S. Small Business Administration OIG (SBA OIG),
are governed by the IG Act. The act structures IG appointments and removals, powers and
authorities, and duties and responsibilities. More than 70 statutory IGs operate in the federal
government.1 For additional information on IGs, see CRS Report R45450, Statutory Inspectors
General in the Federal Government: A Primer, by Ben Wilhelm.

Duties and Responsibilities
IGs have five duties and responsibilities under the IG Act:
1. Conduct audits and investigations of their agencies’ programs and operations2
2. Review legislation and regulations relating to their agencies and make
recommendations in semiannual reports
3. Recommend policies to improve their agencies’ program administration and
operations and prevent and detect fraud and abuse
4. Recommend policies to facilitate relationships between their agencies and other
federal, state, and local government agencies and nongovernmental entities to
promote agency efficiency prevent and detect fraud and abuse
5. Keep both their agency heads and Congress fully informed concerning fraud and
other serious problems and report on the progress made in implementing
recommended corrective action3
In order to carry out the above responsibilities, the IG Act provides IGs with various authorities,
including access to records, the authority to request information, the power to subpoena
documents, and certain law enforcement powers.

Separate Funding
Federal law stipulates that certain OIGs (including the SBA OIG) must have an appropriations
account separate from other agency accounts, known colloquially as a “line item.”4 IGs are
authorized to transmit budget estimates and request to their respective agency heads each fiscal
year as part of the annual budget process. Each IG’s request must include amounts for operations

1 See CRS Report R45450, Statutory Inspectors General in the Federal Government: A Primer, by Ben Wilhelm.

2 OIG audits are conducted in accordance with federal audit standards established by the Comptroller General, and

other reviews are generally conducted in accordance with standards established by the Council of the Inspectors
General for Integrity and Efficiency. In addition, OIGs coordinate their activities with the Government Accountability
Office (GAO) to avoid duplicating federal audits. See U.S. Congress, House Committee on Small Business, SBA
Management and Performance Challenges: The Inspector General’s Perspective, 114th Cong., 2nd sess., March 16,
2016, H. Hrg. 114-049 (GPO, 2016), p. 22.
3 5 U.S.C. §404(a).

4 31 U.S.C. §1105(a)(25).

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and training and for the support of the Council of the Inspectors General on Integrity and
Efficiency (CIGIE).5
By law, the President must include in the Administration’s budget submission to Congress the
IG’s original request; the amount requested by the President for the OIG’s operations, training,
and support for CIGIE; and any comments the affected IG has regarding the proposal if the IG
concludes that the President’s budget would substantially inhibit the IG from performing the
duties of the office.6

SBA’s OIG and IGs
The SBA OIG is a separate, independent office within SBA that provides “independent, objective
oversight to improve the integrity, accountability, and performance of the SBA.”7 The SBA IG
directs the office and is
appointed by the President, by and with the advice and consent of the Senate, without
regard to political affiliation and solely on the basis of integrity and demonstrated ability
in accounting, auditing, financial analysis, law, management analysis, public
administration, or investigations.8
IGs report to the heads of their agencies or establishments and operate under their “general
supervision”9 but are provided various powers and protections that support their independence.
For example, the SBA IG reports to the SBA administrator but
• may be removed from office only by the President10;
• has the authority to hire staff11;
• determines priorities and projects (e.g., audits, reviews, and investigations)
without outside direction12;
• cannot be prevented or prohibited “from initiating, carrying out, or completing
any audit or investigation, or from issuing any subpoena during the course of any
audit or investigation”;13
• must be provided “timely access to all records, reports, audits, reviews,
documents, papers, recommendations, or other material available … which relate

5 5 U.S.C. §406(g)(1). CIGIE is “an independent entity established within the executive branch to address integrity,

economy and effectiveness issues that transcend individual Government agencies and aid in the establishment of a
professional, well-trained and highly skilled workforce in the Offices of Inspectors General.” See CIGIE, “What Is
CIGIE?,” https://www.ignet.gov/. CIGIE also includes the Integrity Committee, which oversees the conduct of high-
ranking employees in the IG community and investigates wrongdoing against those employees. The authorities and
duties of CIGIE are codified at 5 U.S.C. §424.
6 5 U.S.C. 6(g)(3).

7 SBA, “Office of Inspector General,” https://www.sba.gov/office-of-inspector-general.

8 5 U.S.C. §403(a).

9 5 U.S.C. §403(a).

10 Provisions regarding the appointment, removal, suspension, and transfer of IGs, including the SBA IG, can be found

in 5 U.S.C. §403.
11 5 U.S.C. §406(a)(7).

12 5 U.S.C. §406(a)(2). The SBA administrator, President, Members of Congress, SBA employees, and members of the

public may request that a project take place, but, unless otherwise required by law, the SBA IG is not obligated to do
so.
13 5 U.S.C. §403(a).

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to programs and operations with respect to which [the SBA] Inspector General
has responsibilities under this Act”;14 and
• must be provided “appropriate and adequate office space” and “such equipment,
office supplies, and communications facilities and services as may be necessary
for the operation of” the SBA OIG, including any “necessary maintenance
services for such offices and the equipment and facilities located therein.”15

Recent SBA IGs
The SBA’s current IG is William W. Kirk, sworn in on January 6, 2026, following confirmation
by the U.S. Senate. Prior to his appointment, from March 2025 to October 2025, Kirk served as
acting chief of staff in the U.S. Department of Education OIG. He also held positions at the U.S.
Environmental Protection Agency OIG, including deputy counsel to the inspector general and
acting counsel to the inspector general.16
Prior to IG Kirk’s tenure, the SBA OIG was led by IG Hannibal “Mike” Ware from 2018 to
2025.17 IG Ware’s tenure coincided with the implementation of SBA’s pandemic relief programs.
Following President Trump’s second inauguration, IG Ware was among several IGs removed
from their positions in January 2025.18 Before becoming SBA IG, he had served as the SBA
Deputy IG beginning in April 2016.
Prior to IG Ware’s tenure, Peggy Elizabeth Gustafson served as the SBA IG from 2009 to 2017.
She was sworn in as the SBA IG on October 2, 2009, and left to become the Department of
Commerce’s IG on January 9, 2017.

SBA OIG Funding19
Each year, the SBA OIG transmits its own budget justification document to the SBA
administrator, which is also made publicly available online.20 The budget justification provides
information on planned uses of requested appropriations as well as facts about appropriations for
the prior fiscal year. Table 1 shows the SBA OIG’s appropriations over the FY2015-FY2026
period. In FY2026, the SBA OIG received an appropriation of $37.02 million, the bulk of which
covers salaries and benefits for OIG staff (see Appendix A for OIG staffing information).21
Congress has appropriated additional funds to the SBA OIG for oversight and audits of SBA
activities connected with substantial infusions of funding following events such as the 2008

14 5 U.S.C. §406(a)(1)(A).

15 5 U.S.C. 406(d).

16 SBA, “William W. Kirk,” at https://www.sba.gov/person/william-w-kirk/.

17 Ware was nominated by President Trump to be SBA IG on October 16, 2017, confirmed by the Senate on April 26,

2018, and sworn in as SBA IG on May 24, 2018.
18 For more information see CRS In Focus IF11546, Removal of Inspectors General: Rules, Practice, and

Considerations for Congress, by Ben Wilhelm.
19 The SBA is one of the smaller Cabinet-level agencies, with an annual budget of about $1 billion (with the exception

of the COVID-19 era). For more information, see CRS Report R43846, Small Business Administration (SBA) Funding:
Overview and Recent Trends.
20 The SBA OIG’s budget justification documents for FY2010-FY2027 are available at https://www.sba.gov/document/

report-congressional-budget-justification-annual-performance-report.
21 SBA OIG, FY 2027 Congressional Budget Justification and FY 2025 Annual Performance Report, p. 17,

https://legacy.sba.gov/sites/default/files/2026-04/5%20SBA%20FY%202027%20CBJ%20Final.pdf (hereinafter SBA
OIG, FY 2027 Congressional Budget Justification).

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financial crisis and the COVID-19 pandemic. In FY2009, the OIG was provided an additional
$10 million to conduct oversight of $730 million provided to the SBA by P.L. 111-5, the
American Recovery and Reinvestment Act of 2009. In FY2020, the OIG received an additional
$25 million for oversight of $377.5 billion provided to the SBA by P.L. 116-136, the CARES Act.
In FY2021, the OIG was provided an additional $20 million for oversight and audits of the $20
billion Targeted EIDL Advance payment program, and an additional $25 million by P.L. 117-2,
the American Rescue Plan Act of 2021.

Table 1. Small Business Administration Office of Inspector General (SBA OIG)
Appropriations, FY2015-FY2026
$ in Millions
Transfer from
Disaster Loan
New Budget Program Other
Fiscal Year Authority Account Adjustments Total

2026 $37.020 $1.600 $38.620
2025 $37.020 $1.600 $50.000a $88.620
2024 $37.020 $1.600 $38.620
2023 $32.020 $9.600 $41.620
2022 $22.671 $1.600 $24.271
2021 $22.011 $1.600 $45.000b $68.611
2020 $21.900 $1.600 $25.000c $48.500
2019 $21.900 $1.000 $22.900
2018 $19.900 $0.000 $7.000d $26.900
2017 $19.900 $1.000 $20.900
2016 $19.900 $1.000 $20.900
2015 $19.400 $1.000 $20.400

Sources: P.L. 113-235, the Consolidated and Further Continuing Appropriations Act, 2015; P.L. 114-113, the
Consolidated Appropriations Act, 2016; P.L. 115-56, the Continuing Appropriations Act, 2018, and Supplemental
Appropriations for Disaster Relief Requirements Act, 2017; P.L. 115-123, the Bipartisan Budget Act of 2018; P.L.
115-141, the Consolidated Appropriations Act, 2018; P.L. 116-6, the Consolidated Appropriations Act, 2019;
P.L. 116-93, the Consolidated Appropriations Act 2020; P.L. 116-136, the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act); P.L. 116-260, the Consolidated Appropriations Act of 2021; the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and Venues Act (Division N, Title III of the Consolidated Appropriations
Act of 2021); P.L. 117-2, the American Rescue Plan Act of 2021; and P.L. 117-103, the Consolidated
Appropriations Act, 2022; see also SBA OIG congressional budget justifications for FY2024-FY2026 at
https://legacy.sba.gov/document/report-congressional-budget-justification-annual-performance-report.
Notes:
a. In FY2025, P.L. 118-158, the American Relief Act, 2025, provided $2.249 billion in supplemental disaster
appropriations to the SBA Disaster Loans Program Account. SBA OIG received a $50 million statutory
transfer from the Disaster Loan Program Account for audits and reviews of disaster loans and the disaster
loans programs.
b. In FY2021, P.L. 116-260, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
(Division N, Title III, of the Consolidated Appropriations Act of 2021) provided the SBA OIG $20 million to
oversee the Targeted EIDL Advance payments grant program, and P.L. 117-2, the American Rescue Plan Act
of 2021, provided the SBA OIG $25 million for oversight.
c. In FY2020, P.L. 116-136 provided the SBA OIG $25 million for oversight of the CARES Act’s SBA lending
provisions. The funding was available through September 30, 2024.

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d. In FY2018, P.L. 115-123 provided the SBA OIG $7.0 million for investigative costs related to supplemental
funding for SBA disaster loans.
e. In FY2013, P.L. 113-2 provided the SBA OIG $5.0 million to remain available until expended for expenses
related to oversight of disaster loans following Hurricane Sandy. In addition, P.L. 112-25 and P.L. 113-6
imposed a federal government-wide sequestration process and a required 0.2% across-the-board rescission,
resulting in a $1.101 million reduction from the SBA OIG’s budget.
f. In FY2011, P.L. 112-10 imposed a 0.2% rescission on federal agencies, resulting in a reduction of $0.033
million from the SBA OIG’s budget.

SBA OIG’s Recent Activities
The SBA OIG conducts and supervises audits and investigations of the SBA’s programs and
operations. As a complement to its criminal and civil fraud investigations, the SBA OIG makes
recommendations to SBA management regarding suspensions, debarment, and other
administrative enforcement actions against SBA lenders, borrowers, contractors, and others who
have engaged in fraud or have otherwise exhibited a lack of business integrity. The SBA OIG also
conducts, supervises, and participates in various training activities to help counter fraud in SBA
programs. As of 2026, the SBA OIG reported that it had an active nationwide caseload of
approximately 500 criminal, civil, and administrative investigations of potential loan, grant, and
contracting fraud as well as other wrongdoing.22

Continued Pandemic Program Oversight
In addition to oversight of the SBA’s lending, contracting, business counseling, and disaster
assistance programming, the SBA OIG continues to provide oversight of SBA’s COVID-19
pandemic assistance programs.23 SBA’s pandemic relief programs required the agency to increase
its capacities. SBA roughly doubled its staff from FY2019 to FY2021 and also hired large
numbers of contractors. Congress appropriated hundreds of billions of dollars in FY2020 and
FY2021 for SBA to implement its pandemic relief programs. This significantly increased SBA’s
appropriations and responsibilities. SBA’s FY2019 appropriation was $715 million, while its
FY2020 appropriation was $762 billion, an over one-thousand-fold increase.24
In FY2025, the SBA OIG conducted reviews involving the Paycheck Protection Program (PPP),
COVID-19 Economic Injury Disaster Loan (EIDL) program, and Shuttered Venue Operators
Grant program. Pandemic loans will perform in SBA’s portfolio for up to 30 years. In cases
involving PPP and COVID-19 EIDL, the U.S. government will have until at least 2032 to
prosecute program fraud.25

Audit Reports
During the most recent fiscal year for which data are available, FY2025, the SBA OIG issued 25
audit reports containing 123 recommendations for improving the SBA’s operations.26

22 SBA OIG, FY 2027 Congressional Budget Justification, p. 94.

23 Government-wide pandemic program oversight has also been performed by the Pandemic Response Accountability

Committee. See https://www.pandemicoversight.gov/.
24 CRS Report R47694, SBA as a Vehicle for Crisis Relief: Lessons from the COVID-19 Pandemic, coordinated by

Adam G. Levin.
25 SBA OIG, FY 2027 Congressional Budget Justification, p. 99. P.L. 117-165 and P.L. 117-166 extended the statutes

of limitations to 10 years for PPP and COVID-19 EIDL fraud.
26 SBA OIG, FY 2027 Congressional Budget Justification, p. 110.

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Table 2 provides the number of OIG audit reports and recommendations in FY2015 through
FY2025, as well as the self-reported dollar amount in accomplishments, the value of costs
questioned, and the value of recommendations that funds be put to better use.

Table 2. Small Business Administration Office of Inspector General (SBA OIG)
Audits, FY2015-FY2025
$ in Millions
Number of Value of
Number Recommendations Value of Recommendations
Fiscal of Audit Issued/Acted Dollar Amount in Costs That Funds Be Put
Year Reports Upona Accomplishmentsb Questioned to Better Use

2025 25 123/123 $3,762 $3,228.6 $0.0
2024 25 125/130 $200.5 $8,062.5 $0.0
2023 25 129/105 $4,500 $4,662.3 $0.0
2022 16 75/75 $3,807 $3,812.3 $0.0
2021 19 119/108 $0.8 $21.7 $0.0
2020 20 91/88 $142.5 $64.8 $0.0
2019 23 94/91 $111.0 $687.6 $0.0
2018 26 111/119 $145.4 $186.6 $0.0
2017 19 72/72 $2.1 $138.6 $0.0
2016 23 81/84 $3.2 $8.0 $1.3
2015 17 80/84 $15.0 $2.4 $9.1

Sources: See SBA OIG congressional budget justifications for FY2017-FY2027 at https://legacy.sba.gov/
document/report-congressional-budget-justification-annual-performance-report.
a. The number of the SBA OIG’s recommendations acted upon by the SBA in a fiscal year may exceed the
number of recommendations issued by the SBA OIG, because the number acted upon may include
recommendations issued in previous fiscal years.
b. This is the sum of disallowed costs agreed to by management and recommendations that funds be put to
better use agreed to by management.

Investigations, Indictments and Convictions
In FY2025, the SBA OIG’s investigations resulted in 234 indictments and informations and 221
convictions.27 The OIG also issued 41 suspensions and 27 final debarments in FY2025.28 Table 3
provides the number of cases opened, the number of indictments, and the number of convictions
resulting from OIG investigations from FY2015 through FY2025. The table also presents the
reported dollar amount in recoveries and management avoidances for each of these fiscal years.

27 SBA OIG, FY 2027 Congressional Budget Justification, p. 111. An information differs from an indictment in that it

is accusation against a person presented by a competent public officer on his oath of office instead of a grand jury on
their oath (see https://www.justice.gov/archives/jm/criminal-resource-manual-201-indictment-and-informations).
28 SBA OIG, FY 2023 Congressional Budget Justification, p. 39, https://legacy.sba.gov/sites/default/files/2022-04/

FY%202023%20SBA%20Congressional%20Budget%20Justification-508-2022-0413%20updated.pdf. Debarred
contractors, lenders, and borrowers are generally ineligible for new federal contracts or SBA loans for a fixed period of
time, whereas suspended contractors, lenders, and borrowers are generally ineligible for the duration of any
investigation or litigation involving their conduct. See U.S. Congress, House Committee on Small Business, SBA
Management and Performance Challenges: The Inspector General’s Perspective, 114th Cong., 2nd sess., March 16,
2016, H. Hrg. 114-049 (GPO, 2016), p. 29.

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The significant increase in cases, indictments, convictions, and dollar amounts for recoveries and
management avoidances in FY2021 results primarily from investigations of COVID-19 small
business relief borrowers (e.g., PPP and EIDL borrowers).

Table 3. Small Business Administration Office of Inspector General (SBA OIG)
Investigations, FY2015-FY2025
$ in Millions
Number of Recoveries and
Fiscal Number of Indictments and Number of Management
Year Cases Opened Informations Convictionsa Avoidancesb

2025 176 234 221 $533.3
2024 255 267 278 $458.4
2023 195 445 216 $387.9
2022 559 294 194 $316.8
2021 398 272 137 $4,280.6
2020 295 63 32 $77.8
2019 59 49 36 $77.4
2018 73 62 43 $79.0
2017 86 35 25 $79.9
2016 104 45 41 $141.5
2015 78 52 57 $118.8

Sources: See SBA OIG congressional budget justifications for FY2017-FY2027 at https://legacy.sba.gov/
document/report-congressional-budget-justification-annual-performance-report.
Notes:
a. The number of convictions may exceed the number of indictments and informations in a fiscal year, because
a conviction in any fiscal year could result from an indictment or information issued in that fiscal year or a
previous fiscal year.
b. This number is the sum of potential investigative recoveries and fines, asset forfeitures attributed to OIG
investigations, other recoveries (e.g., administrative seizures with partner law enforcement agencies), loans
or contracts not approved or canceled as a result of investigations, and loans not made as a result of name
checks.
c. The number of suspensions and debarments issued by the SBA in response to a recommendation from the
SBA OIG does not include the number of recommended suspensions and debarments pending at the end of
the fiscal year.

Monetary Savings and Recoveries
As indicated in Table 2 and Table 3, the SBA OIG reports that its audits and investigations
resulted in monetary savings and recoveries each fiscal year. This includes monies from potential
investigative recoveries and fines, asset forfeitures, other recoveries (administrative seizures with
partner law enforcement agencies), and loans or contracts not approved or canceled in addition to
disallowed costs agreed to by management.29
Most OIGs, including the SBA OIG, quantify their monetary savings by identifying and reporting
amounts affected by their activities, and, in FY2025, the SBA OIG reported that its work was

29 SBA OIG, FY 2027 Congressional Budget Justification, p. 98.

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associated with $3.76 billion in dollar accomplishments.30 However, this approach has
limitations: For example, precise data concerning monetary savings are not always readily
available. In addition, from a budgetary perspective, the monetary savings identified is sometimes
less than the actual monetary savings realized. For example, savings from disallowed costs agreed
to by management could result in actual budgetary savings, but the recovery process typically
takes time. The final savings for disallowed costs is often not known during the fiscal year in
which it is reported. The SBA OIG’s semiannual reports and annual congressional budget
justifications refer to these disallowed costs as “dollar accomplishments.”31

Recommendations Concerning the Impact of Legislation and
Regulations
The SBA OIG routinely reviews proposed revisions to SBA regulations, policies, procedures, and
other directives with an emphasis on strengthening internal controls to mitigate fraud risks.32 As
shown in Table 4, in FY2025, the SBA OIG conducted 138 reviews of legislation, regulations,
standard operating procedures, and other issuances and submitted comments on 13 of these. It is
difficult to determine the impact of this work, because the SBA OIG does not track or report data
concerning the SBA’s responsiveness to these comments.

Table 4. Legislation, Regulations, Standard Operating Procedures (SOPs), and Other
Issuances Reviewed and Comments Provided, FY2015-FY2025

Fiscal Legislation, Regulations, SOPs, and Number of Initiatives for Which Comments
Year Other Issuances Reviewed Were Provided

2025 138 13
2024 140 9
2023 136 15
2022 142 24
2021 148 13
2020 140 28
2019 112 37
2018 114 43
2017 101 36
2016 119 52
2015 129 72

Sources: See SBA OIG congressional budget justifications for FY2017-FY2027 at https://legacy.sba.gov/
document/report-congressional-budget-justification-annual-performance-report.
Note: Other issuances include policy notices, procedural notices, the SBA administrator’s action memoranda,
and other SBA initiatives.

30 SBA OIG, FY 2027 Congressional Budget Justification, p. 110.

31 For example, see SBA OIG, FY 2027 Congressional Budget Justification, p. 110.

32 SBA OIG, FY 2027 Congressional Budget Justification, p. 95.

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Report on the Most Serious Management and Performance
Challenges Facing the SBA
Pursuant to P.L. 106-531, the Records Consolidation Act of 2000, the SBA OIG issues an annual
Report on the Most Serious Management and Performance Challenges Facing the SBA.33 This
report aims to help “prioritize its work to improve program performance and enhance
operations.”34
The FY2026 Report on the Most Serious Management and Performance Challenges Facing the
SBA lists the following five challenges:
1. Protecting the integrity of SBA programs
2. Managing SBA’s loan portfolio and participating lenders
3. Measuring performance and monitoring SBA programs
4. Financial reporting and managing data
5. Managing risks in information technology systems35
The report describes issues and examples of cases that reflect each of these challenges. The report
also highlights OIG publications that are relevant to each challenge and recommended actions for
SBA. For example, to address risks in information technology (IT) systems, the report states that
“SBA should have multifactor authentication enabled for users to access the agency’s secure
network” and that “IT leaders must consistently identify and classify any AI [artificial
intelligence] uses, particularly if they plan to leverage existing data and AI assets across the
agency.”36

SBA OIG’s Relationship with Congress
Key to Congress’s relationship with the SBA OIG is the flow of credible and impartial
information. The IG Act requires IGs to keep their agencies’ leadership and Congress fully and
currently informed concerning fraud and other serious problems, abuses, and deficiencies relating
to the agencies’ administration of programs and operations and to report on the progress made in
implementing recommended corrective action.
The SBA OIG meets its informational requirements through both formal and informal
communication. Formal communication occurs through the publication of reports related to audits
and investigations, semiannual and annual reports, press releases, official correspondence, and
congressional testimony. The SBA IG testified before Congress once in 2020, three times in 2021,
twice in 2022, five times in 2023, and once in 2026 (to date).37 Informal communication may
include consultation, briefings, or correspondence with SBA officials, congressional staff, and
Members of Congress.

33 Reports are available at https://legacy.sba.gov/document/report-report-most-serious-management-performance-

challenges-office-inspector-general.
34 SBA OIG, Report on the Most Serious Management and Performance Challenges in Fiscal Year 2026, December

18, 2025, p. iv.
35 SBA OIG, Report on the Most Serious Management and Performance Challenges in Fiscal Year 2026, p. v-vi.

36 SBA OIG, Report on the Most Serious Management and Performance Challenges in Fiscal Year 2026, pp. 26-29.

37 SBA OIG, “Congressional Testimony,” https://www.sba.gov/about-sba/oversight-and-advocacy/office-of-inspector-

general/congressional-affairs-and-media/. The SBA IG testified before Congress six times in 2011, once in 2012, three
times in 2013, three times in 2014, none in 2015, once in 2016, four times in 2017, once in 2018, and twice in 2019.

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SBA Oversight Issues of Congressional Concern
As Congress receives and assesses the information it receives from the OIG, it may direct
attention or resources to certain agency oversight matters. Recently, the SBA OIG’s work related
to pandemic-era program oversight and contracting program oversight have drawn scrutiny, as
discussed below. Congress may also call upon the partner entities that support the OIG’s mission
and effectiveness for additional information. According to testimony before the Senate
Committee on Small Business and Entrepreneurship on December 10, 2025, the “institutional
architecture” that helps find and prevent fraud and abuse relies on multiple entities in addition to
OIGs, such as the Government Accountability Office and CIGIE, which hosts the Pandemic
Response Accountability Committee (PRAC).38

Continuity of Pandemic Program Oversight
Since the implementation of COVID-19 pandemic relief programs began, Congress has expressed
interest in the oversight of these programs. Oversight has been conducted by both the SBA OIG
as well as the PRAC.39 Because the SBA will have pandemic program loans in its portfolio for
decades to come, Congress may monitor and ensure the continuity of pandemic program
oversight. Congressional actions affecting this continuity include ensuring sufficient funding and
staffing capacity. In addition, extensions of the statute of limitations for fraud related to pandemic
programs may allow for the investigation of potentially criminal schemes that IG Kirk called
“frequently complex, concealed, and time-intensive to investigate.”40 P.L. 117-165 and P.L. 117-
166 extended the statutes of limitations to 10 years for PPP and COVID-19 EIDL fraud, allowing
the government to prosecute program fraud until 2032.

Integrity of Contracting Program Oversight
The SBA has proceeded with its own administrative review of 8(a) Business Development
Program participants.41 At the same time, the SBA OIG has planned audit work for 2026
examining SBA’s process for certifying firms’ initial 8(a) program eligibility and SBA’s oversight

38 Testimony of Associate Dean for Government Procurement Law Studies Jessica Tillipman in U.S. Congress, Senate

Committee on Small Business and Entrepreneurship, Running Government Like a Small Business: Cut Waste, Crush
Fraud, 119th Congress, 1st Session, December 10, 2025, https://www.sbc.senate.gov/public/index.cfm/2025/12/running-
government-like-a-small-business-cut-waste-crush-fraud_2_2.
39 Congress created the PRAC through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-

136) to conduct and support oversight of the federal government’s pandemic response. Under current law the PRAC
will operate through 2034, with funding appropriated by P.L. 119-21 (commonly known as the One Big Beautiful Bill
Act).
40 Testimony of SBA Inspector General William W. Kirk in U.S. Congress, Senate Committee on Small Business and

Entrepreneurship, From Fraud to Recovery: Restoring Integrity in Small Business Programs, 119th Congress, 2nd
Session, February 25, 2026, https://www.sbc.senate.gov/public/index.cfm/2026/2/from-fraud-to-recovery-restoring-
integrity-in-small-business-programs_2.
41 The SBA administrator announced a “full-scale audit of the [8(a)] program” in June 2025 and moved to suspend

firms from the program for failure to submit documents requested of them by the SBA. SBA, “Administrator Loeffler
Orders Full-Scale Audit of 8(a) Contracting Program,” June 27, 2025, https://www.sba.gov/article/2025/06/27/
administrator-loeffler-orders-full-scale-audit-8a-contracting-program; SBA, “SBA Orders All 8(a) Participants to
Provide Financial Records,” December 5, 2025, https://www.sba.gov/article/2025/12/05/sba-orders-all-8a-participants-
provide-financial-records; SBA, “SBA Suspends Over 1,000 8(a) Firms from Program Following December Document
Request,” January 28, 2026, https://www.sba.gov/article/2026/01/28/sba-suspends-over-1000-8a-firms-program-
following-december-document-request.

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of entity-owned 8(a) firms and their community benefits reporting.42 While the OIG is required to
conduct its work consistent with Generally Accepted Government Auditing Standards
(GAGAS)43 and report its findings and recommendations to the SBA administrator and Congress
upon completion, it remains unclear what procedures the SBA’s program participant eligibility
review will follow and how findings will be disclosed.
Because oversight “is only as effective as its independence, staffing, and transparency,”44
Congress may wish to examine the processes, methodologies, and technical capabilities behind
the SBA’s administrative review. At the time that Congress passed the IG Act, it determined that
there were serious deficiencies in the executive branch’s own auditing and investigative
activities.45 OIGs were thus designed to provide Congress and federal agency heads with
independent, nonpartisan analysis conducted in accordance with GAGAS.

42 Kirk, testimony in From Fraud to Recovery. For more information about the SBA’s 8(a) Business Development

Program, see CRS Report R48190, SBA’s 8(a) Business Development Program: Structure and Current Issues, by R.
Corinne Blackford. Congress may be interested to know that as of the most recent SBA OIG semiannual report to
Congress (covering the period October 1, 2025, through March 31, 2026), there were no open OIG recommendations
related to the 8(a) program, although there were some related to the HUBZone program.
43 GAGAS, also known as the Yellow Book, provides the preeminent standards for government auditing. GAO,

“Yellow Book: Government Auditing Standards,” https://www.gao.gov/yellowbook.
44 Testimony of Jessica Tillipman, Associate Dean for Government Procurement Law Studies, in U.S. Congress, Senate

Committee on Small Business and Entrepreneurship, Running Government Like a Small Business: Cut Waste, Crush
Fraud, 119th Cong., 1st sess., December 10, 2025, https://www.sbc.senate.gov/public/index.cfm/2025/12/running-
government-like-a-small-business-cut-waste-crush-fraud_2_2.
45 The Senate report concluded that “with rare exceptions, the agencies have not adequately policed their own

operations and programs.” U.S. Congress, Senate Committee on Governmental Affairs, Establishment of Offices of
Inspector and Auditor General in Certain Executive Departments and Agencies, 95th Cong., 2nd sess., August 8, 1978,
S.Rept. 95-1071 (GPO, 1978), p. 9.

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Appendix A. SBA OIG Staffing and Organizational
Structure
As shown in Table A-1, the SBA OIG’s FTEs have increased in recent years, largely reflecting its
increased workload related to overseeing supplemental funding provided to the SBA to address
the COVID-19 pandemic’s adverse economic impact on small businesses. The number peaked in
FY2024 at 211.

Table A-1. Small Business Administration Office of Inspector General (SBA OIG)
Full-Time Equivalent Employees, FY2015-FY2027
Fiscal Year Full-Time Equivalent Employees

2027 154 requested
2026 173 anticipated
2025 182
2024 211
2023 177
2022 155
2021 129
2020 118
2019 110
2018 110
2017 101
2016 96
2015 103

Sources: See SBA OIG congressional budget justifications for FY2018-FY2027 at https://legacy.sba.gov/
document/report-congressional-budget-justification-annual-performance-report.

The SBA OIG’s staff is organized into three divisions and several support offices:
• The Auditing Division performs and oversees audits and reviews of SBA
programs and operations, focusing on SBA business and disaster loans and
business development and government contracting programs, as well as
mandatory and other statutory audit requirements involving computer security,
financial reporting, and other work.
• The Investigations Division manages a program to detect and deter illegal and
improper activities involving SBA’s programs, operations, and personnel. The
division has criminal investigations staff who carry out a full range of traditional
law enforcement functions and security operations staff who conduct name
checks and, where appropriate, fingerprint checks on program applicants to
prevent known criminals and wrongdoers from participating in SBA programs.
Security operations staff also conduct required employee background
investigations.

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• The Management and Administration Division provides business support (e.g.,
budget and financial management, human resources, IT, and procurement) for the
various OIG functions and activities.
• The Office of Counsel provides legal and ethics advice to all OIG components;
represents the OIG in litigation arising out of or affecting OIG operations; assists
with the prosecution of criminal, civil, and administrative enforcement matters;
processes subpoenas; responds to Freedom of Information and Privacy Act
requests; and reviews and comments on proposed policies, regulations,
legislation, and procedures.
• The OIG Hotline, under the purview of the chief of staff, reviews allegations of
waste, fraud, abuse, or serious mismanagement within the SBA or its programs
from employees, contractors, and the public.46
The SBA OIG’s headquarters is located in Washington, DC. The SBA OIG’s Investigations
Division has 11 field offices that report to one of three regional offices: eastern, central, and
western.47

46 SBA OIG, FY 2027 Congressional Budget Justification, pp. 116-117.

47 See SBA, “About the Office of Inspector General,” https://www.sba.gov/about-sba/oversight-and-advocacy/office-

of-inspector-general/about-the-office-of-inspector-general/.

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Appendix B. SBA OIG Training and Outreach
The SBA OIG provides training and outreach sessions to better equip the federal, state, and local
oversight communities with the knowledge and skills necessary to identify or pursue small
business fraud cases.48
As shown in Table B-1, the SBA OIG provided more than 800 training sessions to more than
6,000 attendees in FY2025.

Table B-1. Small Business Administration Office of Inspector General (SBA OIG)
Outreach and Training Sessions, FY2015-FY2025
Fiscal
Year Number of Sessions Number of Attendees

2025 828 6,260
2024 708 4,348
2023 623 6,212
2022 754 7,700
2021 165 6,451
2020 194 4,964
2019 165 1,482
2018 184 1,933
2017 220 3,556
2016 74 1,717
2015 28 1,067

Sources: See SBA OIG congressional budget justifications for FY2017-FY2027 at https://legacy.sba.gov/
document/report-congressional-budget-justification-annual-performance-report.

The data suggest that the SBA OIG provides numerous training and outreach sessions related to
identifying and addressing fraud and that these sessions are well-attended. It is difficult to
measure the impact of these activities on the SBA’s interaction with other federal agencies.

Author Information

R. Corinne Blackford
Analyst in Small Business and Economic
Development Policy

48 SBA OIG, FY 2027 Congressional Budget Justification, p. 108.

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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

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