Ernst Slams Biden’s SBA for Requesting More Money While Failing to Protect Taxpayers

Press Release

“Administrator Guzman, you are here today asking for more money to fund an agency that is actively failing to respond adequately to numerous inquiries from Congress, actively failing to track fraud in its programs, and whose offices are often deserted. GAO reports that your headquarters has only a nine percent utilization rate. The American people are so sick of Washington wasting their hard-earned money, and the SBA’s recklessness is a testament to the larger problems of Biden’s mismanaged government.

It’s not clear whether the SBA knew it was giving access to loans, guaranteed by American taxpayers, to a company partially owned by the Chinese. Based on the SBA’s recent track record, I have zero confidence in the agency to do proper due diligence on SBLC risk and protect programs from CCP influence. I join my colleagues in demanding the administration rein in its reckless lending rules and stop issuing new licenses like the one they issued to China-affiliated Funding Circle.

Funding Circle announced yesterday that they plan to start making SBA loans as early as April. Meanwhile, Funding Circle’s CEO states they don’t have sufficient capital to make SBA loans and are looking to sell. The SBA, as far as we know, has never granted a license to a company that intends to immediately turn around and sell the license.”

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