Report 24-21 Improvements Needed in SBA’s Shuttered Venue Operators Grant Post-Award Review Process

Summary

Office of Inspector General Report 24-21, a management advisory on improvements needed in SBA’s Shuttered Venue Operators Grant post-award review process. It says the SVOG program was established on December 27, 2020, and that the Economic Aid Act and the American Rescue Plan Act provided $16.25 billion for grants. The advisory says SBA selected 155 awards for eligibility reviews, while OIG identified an additional 1,818 high-risk awards totaling $1.6 billion that warrant review. It says SBA completed 165 reviews as of February 5, 2024, and estimates 19 years, or until February 2043, to complete the remaining reviews at that pace. SBA management partially agreed with two recommendations and disagreed with one.

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Report 24-21

Improvements Needed in SBA’s Shuttered Venue Operators Grant Post-Award Review Process

The Office of Inspector General is issuing this management advisory to bring attention to concerns regarding the SBA's post-award review process to monitor SVOG award recipients’ eligibility, award calculation, and use of funds.

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The Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding the U.S. Small Business Administration’s (SBA) post-award review process to monitor Shuttered Venue Operators Grant (SVOG) award recipients’ eligibility, award calculation, and use of funds. The Shuttered Venue Operators Grant (SVOG) program was established on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act). The program was amended by the American Rescue Plan Act on March 11, 2021, which increased program funding and reduced SVOG assistance for some recipients who also received loans under the Paycheck Protection Program. Collectively these laws provided the SVOG program with $16.25 billion to provide grants to eligible businesses that engage in venue operations.

Since the agency is currently conducting post-award reviews of SVOG awards, we believe management should take immediate action to apply a more robust risk-based approach in selecting awards to review for eligibility. Specifically, the agency has selected 155 awards for eligibility reviews; however, OIG has identified an additional 1,818 high-risk awards totaling $1.6 billion that warrant review.

We also believe the agency should assess the post-award review process to ensure reviews are conducted timely. Program officials assigned 30 staff members to review 2,162 of the 13,011 SVOG awards in total. As of February 5, 2024, SBA completed 165 reviews since it began conducting post-award reviews in July 2022. At this pace, we estimate it will take 19 years, or until February 2043, to complete the remaining reviews. Therefore, program officials must prioritize the reviews to increase the opportunity to save taxpayer funds and improve the integrity of this vital pandemic relief program. SBA management partially agreed with two recommendations and disagreed with one recommendation.

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Effective : July 10, 2024

Owned by : Office of Inspector General

Related Programs : Related programs: Agency Management, Pandemic Oversight, Shuttered Venues

Last updated September 18, 2024

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