DOGE has been granted access to all SBA systems. The Small Business Association’s HR, Contracts, Historical Data and Payment Systems are now all under the full analysis of the Department of Government Efficiency (DOGE). 

On Feb 6th, Edward Markey (D-Mass) a Ranking Member of the Small Business and Entrepreneurship Committee sent a letter to the SBA Acting Administrator Everett Woodel requesting answers relating to DOGE access to all SBA data and payment systems. This letter was prompted by Democrats’ concerns about Elon Musk’s and DOGE access to SBA systems, potentially threatening critical SBA services and data security.

According to the letter; the ‘Last fiscal year, the SBA provided $37.7 billion in loan assistance, achieved a record 100,000 financings, and made disaster loans to nearly 10,000 small businesses. And during the COVID pandemic, SBA provided more than 22.1 million loans and grants to small business(es), totaling $1.2 trillion.’ 

Although the letter questioned the legality of this ‘audit’ and raised data protection concerns, there was no mention of the seemingly more important ramifications of the DOGE analysis; What safeguards are being implemented from unnecessary delays in processing SBA loan approvals? Will this audit hamper the SBA ability to work with SBA resource partners; bank and non-bank lenders? Are the prerogatives of the DOGE investigation to alter small business qualifications for SBA guaranteed loans? 

It’s widely accepted that close to $136 billion was issued to fraudulent recipients in COVID EIDL programs, making up approximately 30 percent of all EIDL loans issued. The fraudulent SBA EIDL and PPP loans/grants were most presumably due to massive mismanagement. The Committee on Small Business actually admitted that the SBA did not institute necessary safeguards against funding fraudulent loans during COVID EIDL and PPP programs. Surely, DOGE and the current Administration will analyze this and perhaps will propose steps so this does not happen again.

DOGE having access to SBA systems to make the SBA run more efficiently certainly does not mean for a negative outcome, unless the SBA programs limit the ability for lenders to continue to provide SBA loans to rightly approvable businesses.

It is FastwaySBA’s hope that the purpose of the DOGE oversight will be to not limit loans to small businesses, but to cut unnecessary operational expenses from mismanagement. 

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