The Small Business Administration did not direct private lenders to prioritize minority- and female-owned businesses as Congress intended when they started implementing a $669 billion loan program under the CARES Act, a federal watchdog concluded in a report released on Friday, the Washington Post reported. The findings from the SBA Office of the Inspector General add to growing concerns about whether $2 trillion in Cares Act stimulus funds are being distributed fairly amid the economic fallout from the coronavirus. Last month, the Treasury Department had to warn well-capitalized, publicly traded businesses that they would probably not be eligible for the program after several national brand names reported receiving tens of millions of dollars in loans under the Paycheck Protection Program (PPP), while many small businesses without strong banking relationships struggled to get loans. In the report, SBA Inspector General Hannibal “Mike” Ware listed the failure to incorporate guidance on lending to businesses in underserved communities among the possible SBA failures in complying with the CARES Act — although he concluded that the SBA has “mostly” been aligned with the legislation.
