WASHINGTON — Steven Preston, administrator of the Small Business Administration, sought to reassure employees after a second article in recent weeks from the New York Times criticizing the agency's disaster loan assistance program.
This time, the publication mentioned a supposed probe from federal investigators into accusations that in speeding up its work, SBA made thousands of loans "without following its own rules to avoid fraud." According to the Feb. 27 article, current and former employees of the agency told investigators that agency workers failed to secure proper proof that borrowers owned the houses they were supposed to rebuild or had the required insurance.
SBA Administrator Steven Preston told the publication that "We never pushed for disbursement to be made without the proper documentation" and "Of course we want to get the disbursements out faster but it's very dangerous to assume that this would lead to fraud and losses to the taxpayer."
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