Ernst Reveals SBA’s Weak IT Security Measures

In a scathing letter to Small Business Administration (SBA) Administrator Guzman, U.S. Senator Joni Ernst (R-Iowa) has called out the agency for its questionable use of Artificial Intelligence (AI) technology. Despite publicly touting its AI tools, the SBA has reported that it has not actually used AI, raising concerns about the agency’s transparency and accountability.

Ernst, who serves as the Ranking Member of the Senate Small Business Committee, highlighted the SBA’s prioritization of costly AI technology over basic internet technology (IT) security for its offices and programs. The agency has allocated a significant portion of its $22 million IT Working Capital Fund (IT WCF) to pet projects that support AI, while failing to meet federal IT standards and posing significant security risks to Americans’ personal information.

The Senator emphasized the need for the SBA to provide a full accounting of how it is utilizing its IT Working Capital Fund budget and to make appropriate investments in modernizing its IT infrastructure. She pointed out the agency’s ineffective management of risk, supply chain risk, IT configurations, and identity and access policies, as well as its failure to comply with an executive order directing federal agencies to disclose their use of AI.

Ernst’s letter underscores the urgency for the SBA to improve its IT practices, especially in light of recent instances of fraud and identity theft in programs like the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) programs. The Senator’s call for accountability and transparency in the SBA’s use of AI technology highlights the need for greater oversight and responsible investment in IT infrastructure.