Op Ed: What Efficiency Looks Like in Federal Lending

This administration has made it clear: government efficiency will be a central focus throughout its tenure. Historically, our government was designed to move slowly and deliberately, prioritizing thoughtful, well-researched, and methodical decision-making. But today, Americans expect more. People are looking for the speed and innovation of the private sector in public programs and services. While that has at times been a challenge, the government’s own rapid pandemic response proves that modernization isn’t just possible—it’s necessary.

Federal loan programs are among the most powerful tools available to build a stronger, more resilient America. They help farmers purchase equipment, spur small business innovation in the defense sector, and provide critical relief to families rebuilding after natural disasters. These programs embody the promise of government working for the people. Yet many are shackled by outdated technology and bureaucratic inefficiencies that undermine their effectiveness.

Across the federal government, there are more than 130 credit programs. Many rely on a patchwork of different technology systems just to move a single dollar out the door. This complexity creates unnecessary delays, reduces transparency, and magnifies the risk of fraud. Fraudulent actors, including state-sponsored groups and organized rings, exploit these gaps by targeting disjointed systems and inconsistent identity verification processes. The result? Billions of taxpayer dollars lost, while eligible borrowers—especially small businesses and individuals in crisis—are left waiting for the support they urgently need.

We’ve seen the consequences. During the COVID-19 pandemic, federal programs disbursed funds at record speed. While those efforts were essential and historic in scope, they also revealed weaknesses in fraud prevention. In many cases, the need for speed led agencies to forgo robust upfront controls. Self-attestation became the norm. While this expedited access, it also opened the door to identity theft and widespread misuse. Going forward, we must ensure that speed and integrity go hand in hand to maximize impact and ensure dollars get to the people that need it most.

A modern federal lending system should be agile, secure, and responsive. It must feature a unified technology infrastructure that integrates seamlessly across agencies, eliminating redundancy and reducing administrative burden. This system should enable secure, real-time identity verification and include AI-powered tools for fraud detection and risk assessment. Transparency must be central—every dollar traceable from application to disbursement—ensuring accountability and public trust. And critically, it must be designed with users in mind, simplifying the borrower experience without sacrificing security or oversight.

But technology alone isn’t enough. To truly modernize lending, we must also rethink how agencies manage and share common functions. A recent white paper from the Federal Credit Working Group, written by Summit Group’s Anthony Curcio and Sarah Cunningham, highlights the promise of shared services for credit programs. Many lending agencies perform similar back-office tasks: loan servicing, financial reporting, data compliance, and risk modeling. Rather than reinventing the wheel for every program, shared services allow agencies to pool resources, standardize best practices, and scale proven systems. Done right, this approach saves time, reduces costs, and strengthens internal capacity—all without compromising each agency’s accountability or mission.

Shared services won’t solve every problem. Successful implementation, though, requires upfront planning, interagency coordination, and clear service-level agreements. The benefits are clear. When programs collaborate early—especially during startup phases—they can avoid duplicative investments and streamline execution. They can also tap into experienced service providers who have already addressed audit requirements, staffing models, and systems infrastructure.

Efficiency in federal lending isn’t just about upgrading software or cutting red tape. It’s about delivering results. Faster processing times mean entrepreneurs can seize opportunities when they arise—not months later. Smarter fraud controls protect limited taxpayer dollars from being siphoned off by bad actors. And greater transparency fosters trust in government programs too often dismissed as slow or opaque.

We’ve already seen what’s possible. Now we need to embed those lessons into the DNA of every lending program. That means adopting tools and practices that prioritize both speed and security. It means aligning around common infrastructure where it makes sense. And it means recognizing that efficiency is not an abstract goal—it’s the foundation of a government that works better for everyone.

The American people deserve a federal lending system as nimble, trustworthy, and effective as the businesses and communities it supports. By embracing innovation, collaboration, and shared accountability, we can deliver on that promise—without sacrificing integrity, transparency, or impact.

Jon Remedios is a Director for Client Success at Allocore. Allocore powers leading government loans, grants, and fraud prevention programs with a unified platform built for efficiency and security. With trillions in loans and grants processed and billions in fraud prevented, Allocore brings the precision of commercial banking technology to the public sector.