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SBA Ignored Warnings About Loan Servicing System, Subcommittee Chairman Says

“The SBA’s legacy technology systems were not fully equipped to handle the unprecedented level of applicants.”

Paycheck Protection Program application Source: Shutterstock.

The Government Accountability Office warned the Small Business Administration six years ago that its loan servicing system could not handle a large volume of loans – similar to those processed during the past several months under the Paycheck Protection Program – a House subcommittee chairman charged Thursday.

“(The) SBA’s legacy technology systems were not fully equipped to handle the unprecedented level of applicants, resulting in a number of technical issues with the implementation,” Jason Crow (D-Colo.), chairman of the House Innovation and Workforce Development Subcommittee, said in a memo prepared for a subcommittee hearing Thursday.

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