SBA Administrator announces expanded efforts to crack down on fraud in programs

Today, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA) announced an all-hands-on-deck, multi-faceted expansion of efforts to identify and support the SBA Inspector General’s recovery of fraudulently obtained COVID economic relief funds and to prevent potential future theft of taxpayer dollars.

Key measures being announced today are:

• The designation of Peggy Delinois Hamilton to a new role as SBA Special Counsel for Enterprise Risk to advise on fraud and risk management activities across the Agency.
• The creation of the SBA’s Fraud Risk Management Board (FRMB) to provide anti-fraud oversight and coordination.
• Consistent with new efforts to bring bad actors to account for their fraudulent acts, the SBA fully supports the work of the Interagency COVID-19 Fraud Enforcement Taskforce and DOJ’s Chief Pandemic Prosecutor and Director for COVID-19 Fraud Enforcement.

Hamilton will advise the Administrator on risk management activities enterprise-wide and directly support the development of strategies for mitigating risks facing the agency - focusing on fraud exposure as a top priority, as well as the development of plans to reduce risks to SBA operations. As a result of her extensive and unique bank regulatory experience and deep knowledge of agency priorities, she will provide strategic insight into enterprise-wide risks with a clear impact on key agency programs. Hamilton has served as SBA’s General Counsel since February 2021, and another SBA official will take on these duties in the interim.

The Fraud Risk Management Board (FRMB) was established to serve as the designated anti-fraud entity responsible for oversight and coordination of SBA’s fraud risk prevention, detection, and response activities. The FRMB is composed of experienced agency executives across the SBA enterprise. They will report to the Enterprise Risk Management Board (ERM Board) and through the ERM Board to the Administrator. In coordination with the oversight community, the FRMB will take additional steps to assess and address fraud risk on an agency-wide basis. 

The SBA has taken tangible steps to control for and mitigate fraud risks in its COVID-19 related relief programs by working in tandem with other agencies across the federal government and using a whole-of-government approach to reduce risks.

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