Joni Ernst Questions SBA Nominee on Transparency and Rulemaking

SBA Nominee Testimony on Transparency and Fraud

• 📌 Senator Joni Ernst highlighted concerns regarding lack of transparency and over $200 billion in fraud within SBA's COVID EIDL and PPP programs.
• 🤝 Mr. Briggs, a nominee, expressed pride in his service during the Trump administration, acknowledging the significant fraud in these programs but noting implemented checks to reduce it.
• ⚠️ Briggs committed to a zero-tolerance approach to fraud and focusing on cracking down on fraud in current SBA programs if confirmed.

Addressing 7A Loan Program Deficits

• 📉 Ernst raised concerns about the 7A Loan program's negative cash flow and potential need for appropriation due to high defaults.
• ✅ Briggs committed to reviewing loan portfolios and implementing policy changes to ensure taxpayers are not footing the bill for the program's losses.
• 🎯 He aims to return the 7A program to its historical position of having a neutral subsidy.

Lessons Learned from COVID Programs

• 💡 Briggs identified not shutting down the entire economy and having more forethought as key lessons from the COVID-19 crisis.
• 🔍 He also emphasized the need for upfront identity checks, verification, and clearer eligibility guidelines in both Capital Access and disaster loan programs.

Rulemaking Transparency and the PRO-IT Act

• ⚖️ Dr. Mulligan addressed concerns about a $1.8 trillion regulatory onslaught and 350 million hours of paperwork impacting small businesses.
• 🚀 Mulligan supports increasing transparency and accuracy in cost-benefit analysis for SBA's rulemaking process.
• 🗣️ He agreed that agencies have often been weak in considering the indirect costs of regulations and committed to properly evaluating both direct and indirect impacts on small businesses if confirmed.
• 👍 Mulligan explicitly stated his support for the PRO-IT Act.