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Friday, 19 March 2021 17:53

$692M in Duplicate Loans Made Under the Paycheck Protection Program

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The Office of the Inspector General (OIG) reviewed PPP regulations and the Paycheck Protection Program and Health Care Enhancement Act, in addition to guidance published in the U.S. Small Business Administration’s PPP Interim Final Rules and PPP FAQs.

OIG determined SBA did not always have sufficient controls in place to detect and prevent duplicate PPP loans.

 

As a result, lenders made more than one PPP loan disbursement to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. These disbursements totaled about $692 million for PPP loans approved from April 3 through Aug. 9, 2020.

 

OIG recommended in part that SBA:

 

  • Review identified potential duplicate disbursements for eligibility and take action to recover any improper payments
  • Review controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate
  • Strengthen E-Tran controls for future PPP-type programs to ensure the controls align with program requirements and are active at all times
  • Strengthen controls and guidance for lenders to ensure lenders meet program requirements for future PPP type programs

 

Source: SBA

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