The Small Business Administration Office of inspector General released an audit of the accuracy of the FY2015 Disaster Loan Program Improper Payments Rate. The SBA disaster loan program provides low interest loans to businesses, nonprofits, homeowners and renters to repair and replace property following a declared disaster. The Improper Payments Elimination and Recovery Act requires agencies to review the programs and estimate improper payments and take actions to address them.
The OIG audit found that the SBA had been under-reporting their improper payment rate because they were not following the relevant laws and regulations for improper payment detection. While SBA reported an improper payment rate of 8.1 percent totaling $24.6 million, the SBA OIG found that the rate was 9.9 percent totaling $29.9 million.Read the full report