The Small Business Administration (SBA) is facing heavy criticism from top Republican lawmakers over its handling of a $100 million initiative designed to help underserved small businesses.

The Biden administration program, known as the Community Navigator Pilot Program (CNPP), has been labeled by critics as a wasteful misuse of taxpayer funds, though it continues to tout what says is its success in training and counseling thousands of underserved businesses, just as an internal review raises concerns about accountability, as Fox Business reports.

Program Funded by American Rescue Plan

The Community Navigator Pilot Program was established in 2021 as part of the American Rescue Plan Act. Its goal was to support small businesses that had been hit hardest by the COVID-19 pandemic, particularly those owned by women, minorities, and veterans.

Top Republicans, however, argue that the program fell short of its objectives. The criticism stems largely from a recent report released by the SBA's Office of Inspector General (OIG), which highlighted several key issues with the program’s execution and oversight.

Inspector General's Report Reveals Gaps

According to the OIG, the SBA failed to establish specific targets for how many underserved businesses the program should reach. Additionally, it lacked measures to prevent double counting of the program’s performance data, which has raised concerns about the validity of its reported outcomes.

The OIG made five recommendations to improve the program’s oversight and accountability. While the SBA agreed with some of these recommendations, it expressed reservations about setting specific targets for underserved populations, citing legal and programmatic risks.

Republican Lawmakers Condemn Mismanagement

House Small Business Committee Chairman Roger Williams has been among the program’s most vocal critics. In response to the OIG report, he said, "It is disappointing to see that the SBA’s Community Navigator program fell short on its promise to support America’s small businesses."

Williams went on to criticize the program’s cost, arguing that it has yielded "uncertain results" at the expense of $100 million in taxpayer funding. He added that the SBA’s management of the program left serious doubts about transparency and accountability.

Senator Joni Ernst Calls Program a 'Dumpster Fire'

Senate Small Business Committee Ranking Member Joni Ernst offered similarly harsh criticism, describing the Community Navigator Pilot Program as a "dumpster fire." She accused the Biden-Harris administration of spending without accountability, stating that the program had no established target and was part of a broader "inflation creation spending spree."

Ernst also noted that small businesses operating on "razor-thin margins" would not be able to afford the financial irresponsibility that she believes the SBA demonstrated with this program.

SBA Defends Program’s Achievements

Despite the criticism, the SBA has defended the program's success in reaching underserved small businesses. According to the agency, the CNPP provided training to over 350,000 individuals and offered one-on-one counseling sessions to more than 33,000 businesses.

The SBA also noted that 75% of those who received counseling had not previously worked with the SBA, a point the agency argues shows the program's effectiveness in engaging underserved entrepreneurs.

Program Served Minority-Owned Businesses

The SBA emphasized that the Community Navigator Program helped a significant number of minority-owned businesses, including those owned by women, veterans, and people of color. The agency pointed out that the program reached a larger proportion of Black, Asian, and Hispanic business owners than other SBA initiatives.

An SBA spokesperson pushed back against the criticisms, stating, "It comes as no surprise that members of Congress who opposed the Community Navigators program when it was created are still attacking it today despite its successful record."

Questions Remain as Final Data Is Analyzed

Although the SBA maintains that the program was successful, the final data on its overall impact is still being analyzed. The agency acknowledged challenges related to data sharing and privacy laws, which made it difficult to track performance across different populations accurately.

Nonetheless, the Biden-Harris administration and several Democratic lawmakers have lauded the CNPP as a key success of the American Rescue Plan, particularly for its role in helping small businesses recover from the economic impacts of the pandemic.

Ongoing Debate Over Effectiveness

The debate over the effectiveness of the Community Navigator Pilot Program is far from over. While Republicans argue that the program was an expensive failure, Democrats and the SBA continue to tout its achievements in reaching underserved small businesses.

The final outcome of this debate may hinge on the SBA’s ability to address the concerns raised by the OIG and demonstrate that the program’s long-term benefits outweigh its costs.

Conclusion

The SBA’s $100 million Community Navigator Pilot Program, intended to aid underserved small businesses, has sparked fierce debate between Republican lawmakers and the agency. While critics argue that the program mismanaged taxpayer dollars, the SBA defends its results, citing substantial outreach to minority-owned businesses.

As the final data is still being analyzed, the full impact of the program remains to be seen, leaving questions about whether the investment truly served its intended purpose.