The Small Business Administration (SBA) may have made $11.5 million in improper payments to banks by overriding its own employees' recommendations to reduce or deny guarantees on failed small-business loans. For an additional 13 loans, the SBA's delayed reviews expired the statute of limitations, resulting in another $5.4 million in lost funds. The SBA's 7(a) program aids startups by having private banks issue loans, with the government guaranteeing a portion of the losses if the borrower defaults. Taxpayers are only obligated to cover the guarantee if the bank adheres to SBA regulations. Banks can face reduced or denied payouts if they fail to properly assess borrower repayment ability or follow other safeguards. Auditors examined 32 defaulted loans where SBA staff advised against full payouts, but senior reviewers overturned these decisions. For 16 of these loans, auditors found no sufficient justification for overturning the original recommendations, leading to the $11.5 million in potential improper payments. One instance involved a loan where the borrower provided no evidence of repayment ability, yet the SBA still issued the guarantee. Furthermore, the SBA's lengthy review process for high-risk loans meant that for 13 loans, the six-year window to contest bank violations passed before any issues were identified. This audit highlights how taxpayer money is put at risk when banks are not held accountable for following loan program rules.