North Miami-Dade News

Rep. María Elvira Salazar from Florida did not hold back in questioning Isabel Guzman, the Administrator of the Small Business Administration (SBA), during a House Small Business Committee hearing. Salazar expressed her concern over the findings of the annual KPMG audit report, which highlighted significant failures within the SBA under Guzman’s leadership.

"Unfortunately, KPMG found inadequate loan process reviews, poor record-keeping, and legal compliance issues at President Biden’s Small Business Administration," remarked Rep. Salazar. She also criticized Guzman for not taking responsibility for the agency's shortcomings despite being in her position for three years.

The audit report recommended 55 management fixes, painting a grim picture of the SBA's operations. This audit report followed another concerning revelation by the SBA's Inspector General, which uncovered over $200 billion in potentially fraudulent loans distributed through the COVID Economic Injury and Disaster Loans (EIDL) program. Guzman responded to this by releasing a conflicting report on the same day, claiming that only $36 billion of the loans were fraudulent.

Rep. Salazar has been actively advocating for the return of taxpayer funds that were misused or obtained fraudulently. Her efforts led to the passing of the Returning Erroneous COVID Loans Addressing Illegal and Misappropriated (RECLAIM) Taxpayer Funds Act in November 2023, which was subsequently implemented by the Biden Administration in December 2023.

The scrutiny faced by the SBA under Guzman's leadership underscores the importance of accountability and transparency in government agencies. The efforts of lawmakers like Rep. Salazar serve as a reminder of the responsibility to safeguard taxpayer funds and ensure they are used appropriately.