What GAO found
The State Small Enterprise Credit score rating Initiative (SSBCI) provides funding to eligible jurisdictions (state, territory, District of Columbia, and tribal governments) to help small enterprise lending and funding purposes by the use of its capital purposes . Eligible jurisdictions might apply for technical assist funding (equal to licensed, accounting, and financial advisory suppliers) to help certain corporations lined by the SSBCI program or totally different authorities small enterprise purposes.
The Ministry of Finance, which administers SSBCI, has repeatedly extended the equipment deadline for capital and technical assist purposes (see chart). All 50 states, 5 territories, and the District of Columbia have submitted capabilities for the Capital Planning Fund, and as of September 30, 2022, the Treasury has accepted 31 of his capabilities for $1.3 billion. have spent
State Small Enterprise Credit score rating Initiative Software program Deadline Extension March 2021-March 2023
Due partially to these extended deadlines and the time required to overview and approve fairly just a few capabilities, the Treasury Division is taking longer than anticipated to disburse SSBCI funds. Necessary SSBCI implementation steps keep, along with overview of remaining capabilities, implementation of compliance monitoring and effectivity measurement plans. Nonetheless, Treasury’s planning work would not completely incorporate certain biggest practices beforehand developed by GAO for reliable endeavor scheduling. As an example, the Treasury Division’s work plan would not decide workers or contractors answerable for each train. Completely implementing these biggest practices will help prohibit potential delays and assure properly timed disbursement and monitoring of program funds.
The Treasury Division is rising a framework to help and monitor compliance with jurisdictions’ SSBCI ideas. In November 2022, the Treasury Division printed the compliance and oversight necessities that jurisdictions use for his or her purposes. Officers acknowledged they’re establishing on the procedures utilized in his distinctive SSBCI and plan to develop compliance monitoring procedures (utilized by the Treasury Division) by Dec. 31, 2022. . Measure program effectivity.
Why GAO did this analysis
SSBCI was reauthorized by the 2021 American Support Plans Act (ARPA) to help small corporations get higher from the monetary affect of the COVID-19 pandemic. Congress has allotted $10 billion for this program.
The CARES Act and ARPA embrace provisions for the GAO to oversee federal authorities efforts to reply COVID-19. Amongst its targets, the report evaluations the Treasury Division’s efforts to complete the SSBCI’s key implementation steps, deal with program risks, and measure program effectivity.
GAO reviewed associated legal guidelines and SSBCI paperwork and analyzed Treasury data on funds allotted and disbursed. GAO moreover interviewed Treasury Division officers, 4 regional representatives, and a non-generalizable sample of 12 state and his three tribal governments.