GAO claims blockchain could help SBA to simplify reporting mechanisms, secure lending procedures, and track business development.
The United States Government Accountability Office (GAO) has recognized the possible advantages of incorporating blockchain technology for the supervision of different programs under the Small Business Administration's (SBA) authority.
The prospect of using this decentralized technology within SBA initiatives, designed to aid small businesses and entrepreneurs, was thoroughly examined by the GAO.
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The revolutionary report by GAO underscored the potential of blockchain to simplify and enhance annual reporting mechanisms, facilitate secure lending procedures, and keep track of business development strides, among other noteworthy benefits.
It is worth noting that SBA's current operations do not incorporate blockchain technology. However, numerous experts, who participated in the GAO's investigation, are optimistic about the transformative effects of blockchain.
GAO experts believe that blockchain could assist the federal institution in overcoming a variety of hurdles it is currently facing. GAO's report notes:
These include using a blockchain-based ledger to expedite SBA’s reporting to Congress, assist in real-time data collection for determining program participants’ eligibility, and facilitate program oversight.
The in-depth research looked into four distinct programs run by SBA to scrutinize the feasibility and constraints of adopting blockchain technology. The study deduced that blockchain could potentially reduce the risk of fraud within the 7(a) Loan Program. This is SBA’s main initiative offering financial support to small businesses.
Blockchain could facilitate SBA oversight if information about the 7(a) loans were stored on a blockchain-based ledger. In this case, the characteristics of the loans and borrowers could be verified by trusted sources.
Nevertheless, it is essential to note that the adoption of this technology would not necessarily prevent deceitful practices by lending service providers.
Moreover, the 8(a) Business Development Program, designed to support small enterprises owned and managed by individuals facing social and economic disadvantages, could potentially harness blockchain technology for real-time data gathering.
Further potential applications for blockchain, as outlined in the GAO's report, include streamlining the application procedure for the Disaster Loan Program and enhancing the promptness of agency reporting for both the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
The US Government Accountability Office's exploration into blockchain technology suggests its potential to improve oversight and efficiency in various Small Business Administration programs offering a new perspective for future innovation in public sector administration.
In other blockchain-related news, recently, the Canadian House of Commons urged the nation to acknowledge the rising significance of blockchain.
