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Duplicate Loans Made Under the Paycheck Protection Program

Review · Small Business Administration OIG · 2021-03-15 · about Small Business Administration

Report

Title
Duplicate Loans Made Under the Paycheck Protection Program
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Review
Publication date
2021-03-15

Summary

SBA OIG reviewed PPP regulations and the Paycheck Protection Program and Health Care Enhancement Act, in addition to guidance published in SBA’s PPP Interim Final Rules and PPP Frequently Asked Questions.We 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.

Recommendations (4)

#StatusText
1OpenReview the OIG identified potential duplicate disbursements for eligibility and take action to recover any improper payments as applicable
2ClosedReview SBA controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate
3ClosedStrengthen E-Tran controls for future PPP type programs, which includes keeping E-Tran controls that align with program requirements on at all times
4ClosedReview the issues that SBA identified involving the actions of lenders, such as providing incorrectly formatted data and submitting the same application through multiple platforms,and determine how to strengthen controls and guidance as appropriate to…

Source

Authoritative
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