Senator Landrieu began by asking both Karen Mills and Peggy Gustavson why there was disagreement between the SBA and the SBA IG over the definition of what constitutes an improper loan payment, and what both were doing to address the ramifications of this issue, namely that there have been sizable losses in recouping small business loans.

Ms. Mills answered first, noting that the issue was much more of a procedural one, where greater attention was needed in “dotting the i’s and crossing the t’s”. Ms. Mills contended that there had been much progress made toward curbing fraud in small business loans during her administration.

Peggy Gustafson answered next, disagreeing somewhat with Ms. Mills assessment. Ms. Gustafson contended that this issue is not simply a procedural one, that the issue is material and requires swift action to ensure oversight over small business loan programs.

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