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Title page 1

Contents 3

Highlights 2

Letter 5

Background 7

SBA Business Assistance 7

Navigator Program Targeted Outreach 8

Navigator Program Funding and Structure 9

Navigators Provided Training and Counseling to Underserved Small Business Owners, and Noted Benefits and Challenges 11

Training and Counseling Covered a Variety of Topics and Navigators Reached New and Smaller Businesses 11

Data Suggest Navigator Program Largely Counseled Clients in Underserved Groups 12

Navigators Described Benefits of the Program and Challenges Related to Delivering Services 19

Navigator Program Partially Aligned with Most Leading Practices but No Outcome Evaluation Is Planned 24

SBA Took Steps to Mitigate Navigator Program Fraud Risks but Did Not Solicit District Staff Input on Applicants 29

SBA Assessed Fraud Risks for the Navigator Program 29

SBA's Assessment of Hub Applicants Did Not Incorporate Input from Local Staff 32

Conclusions 37

Recommendations for Executive Action 37

Agency Comments and Our Evaluation 38

Appendix I: Objectives, Scope, and Methodology 41

Appendix II: Demographic Analysis of Counseling Clients in Selected SBA Programs 51

Appendix III: Comments from the Small Business Administration 52

Appendix IV: GAO Contact and Staff Acknowledgments 54

Tables 3

Table 1. Counseling Hours and Number of Clients SBA's Community Navigator Pilot Program Reported for Clients Who Self-Identified with Targeted Groups 13

Table 2. Percentages of Counseling Clients by Zip Code Characteristics for Selected SBA Programs 15

Table 3. Client-Hours of Service Selected SBA Programs Reported Providing in Fiscal Years 2022 and 2023 17

Table 4. Description of Fraud Risks and Control Activities SBA Identified for the Community Navigator Pilot Program's Fraud Risk Assessment 30

Table 5. Demographic Attributes Reported by Counseling Clients of Selected SBA Programs in Fiscal Years 2022 or 2023 51

Figures 4

Figure 1. SBA's Competitive Grant Application Review Stages for Hubs in the Community Navigator Pilot Program 33