WASHINGTON — The Obama administration's efforts to expand key Small Business Administration programs suffered a setback Wednesday as lawmakers and the agency's inspector general cited ongoing fraud issues and other obstacles to the plan.

"In some instances, core initiatives have been wracked by fraud," said Small Business Committee Chairman Nydia Velazquez at a hearing on the issue. "In other cases, they have been undermined by questionable practices. It is imperative that these programs be restored to reflect their original mission — strengthening and supporting small businesses."

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