Potential Benefits of Blockchain in SBA Programs
The United States Government Accountability Office (GAO) has identified that blockchain technology can be beneficial in facilitating oversight of programs run by the Small Business Administration (SBA). In its report, the GAO highlighted the potential of blockchain to streamline and improve annual reporting, facilitate safe loans and monitor business development progress.
Despite the SBA not having considered using blockchain, experts cited in the GAO’s study believe that blockchain can help the federal agency address various challenges. The study involved four SBA programs to explore the potential use and limitations of blockchain adoption.
The 7(a) Loan Program, SBA’s primary loan guarantee program for providing financial assistance to small businesses, is one of the areas the GAO believes blockchain could help mitigate fraud risk. This is just one of the many potential uses of blockchain for the SBA.
Uses of Blockchain
Crypto fraud cannot be completely prevented by the latest technology, but the 8(a) Business Development Program — which assists small businesses owned by socially and economically disadvantaged people — could use blockchain to gather real-time data for assessing the ongoing eligibility of participants.
The Polygon, Tonic, AMP, and Gala crypto markets today could also benefit from blockchain technology, like expediting the application process for the Disaster Loan Program, and improving the timeliness of agency reporting for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
The Apple Health application is also an example of a Web 3.0 application that uses blockchain.
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