Democrats Demand SBA Employees Associated With Credit Fraud

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“The Greenberg case facts, along with the SBA’s inspector general’s earlier finding … raise serious concerns over whether the SBA had sufficient oversight to prevent employees and contractors from facilitating large-scale fraudulent loan approval plots,” wrote Cliburn and Velazquez.

The concerns highlighted by lawmakers are just the latest controversy over how the SBA is handling loans in the wake of the Covid-19 disaster, after the agency struggled to deliver aid to sick employers and faced concerns about widespread fraud. The SBA said last month that it is transferring control of EIDL’s pandemic aid to another unit as part of a major overhaul.

SBA spokeswoman Shannon Giles said the agency’s policy is not to comment on personnel issues or pending litigation.

“The SBA takes fraud seriously and therefore all applicants must provide proof of eligibility to participate in the program,” Giles said. “Distortion of legal capacity is unlawful and, when appropriate, these cases are referred to the Office of the Inspector General.”



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