Republicans criticize SBA for $100M funding mismanagement

The Small Business Administration (SBA) has come under intense scrutiny from Republican leaders in Congress regarding its oversight of a $100 million initiative aimed at supporting underserved small businesses affected by the pandemic. This program, known as the Community Navigator Pilot Program (CNPP), was established through the American Rescue Plan Act of 2021. Recent findings from the SBA's Office of Inspector General (OIG) raised concerns about the agency's ability to effectively measure and manage the program's outcomes. The OIG's audit pointed out that the SBA failed to set specific targets for the number of underserved clients it aimed to assist, which hindered the evaluation of the program's success. Additionally, the report noted issues with double counting performance results among organizations involved in delivering services. In response, the SBA acknowledged some of the OIG's recommendations but expressed concerns about the feasibility of setting targets due to legal and programmatic risks. Despite the criticisms, the SBA reported that the CNPP trained over 350,000 individuals and provided one-on-one counseling to more than 33,000 people, many of whom had not previously engaged with the SBA. The agency emphasized that a significant portion of those served were from diverse backgrounds, including women and minority business owners. Republican lawmakers have labeled the program a failure, arguing that it represents a misuse of taxpayer funds. They have called for greater accountability and transparency in the management of such programs, while the SBA defends its efforts to reach underserved communities and foster valuable partnerships with local organizations.