Point out Small Small business Credit Initiative: Enhanced Planning Could Assist Treasury Restrict More Delays

What GAO Located

The Condition Smaller Business enterprise Credit rating Initiative (SSBCI) presents resources to qualified jurisdictions—states, territories, the District of Columbia, and tribal governments—to assistance smaller small business lending and investment decision systems by its capital program. Suitable jurisdictions also can apply for complex support funding (this kind of as for authorized, accounting, and fiscal advisory companies) to support specific enterprises that apply to an SSBCI software or one more governing administration small business enterprise software.

The Office of the Treasury, which administers SSBCI, extended application deadlines for the money and technical aid systems various occasions (see determine). All 50 states, five territories, and the District of Columbia submitted purposes for funds method funds, and as of September 30, 2022, Treasury experienced accepted 31 purposes and disbursed $1.3 billion.

Application Deadline Extensions for Point out Little Business enterprise Credit rating Initiative, March 2021–March 2023

Partly since of these deadline extensions and the time essential to evaluation and approve many applications, Treasury has taken more time than envisioned to disburse SSBCI funds. Sizeable SSBCI implementation ways continue to be, this sort of as reviewing remaining programs and employing compliance monitoring and effectiveness measurement designs. Nevertheless, Treasury’s preparing initiatives have not totally integrated specific greatest tactics GAO earlier designed for trusted venture scheduling. For case in point, Treasury’s perform prepare has not recognized which employees or contractors would be dependable for each and every action. Absolutely incorporating these finest procedures could assist restrict the potential for delays and aid be certain timely disbursement and oversight of plan resources.

Treasury has been creating a framework to support and check jurisdictions’ compliance with SSBCI guidelines. In November 2022, Treasury released compliance and oversight requirements for jurisdictions to use for their packages. Officers mentioned they have been creating on processes used for the authentic SSBCI and prepared to develop compliance checking treatments (for Treasury to use) by December 31, 2022. Treasury also has printed data collection and reporting necessities for SSBCI and has been establishing critical indicators to evaluate plan efficiency.

Why GAO Did This Study

SSBCI was reauthorized by the American Rescue System Act of 2021 (ARPA) to support compact businesses recovering from the financial outcomes of the COVID-19 pandemic. Congress appropriated $10 billion for the system.

The CARES Act and ARPA consist of provisions for GAO to monitor the federal government’s endeavours to respond to COVID-19. Amid its aims, this report examines Treasury’s efforts to complete essential implementation methods for SSBCI and control plan risks and measure method general performance.

GAO reviewed relevant legislation and SSBCI documentation and analyzed Treasury details on allotted and disbursed funds. GAO also interviewed Treasury officers, associates of 4 territories, and representatives of nongeneralizable samples of 12 states and 3 tribal governments—selected to stand for a assortment of geographic areas and other traits.