SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans
Inspection / Evaluation · Small Business Administration OIG · 2022-05-26 · about Small Business Administration
Report
Title
SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Inspection / Evaluation
Publication date
2022-05-26
Summary
The Office of Inspector General (OIG) found that the Small Business Administration (SBA) did not have an organizational structure with clearly defined roles, responsibilities, and processes to manage and handle potentially fraudulent Paycheck Protection Program (PPP) loans across the program. In addition, the agency did not establish a centralized entity to design, lead, and manage fraud risk. This problem occurred because the agency did not establish a sufficient fraud risk framework at the start of and throughout PPP implementation.
Recommendations (2)
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Status
Text
1
Open
Establish clearly defined and detailed roles, responsibilities, and processes for all SBA offices and officials responsible for managing and handling potentially fraudulent PPP loans to reduce the risk of ineligible applicants receiving PPP…
2
Open
Provide lenders formal guidance to effectively and consistently handle potentially fraudulent PPP loans and ensure lenders have sufficient guidance when implementing similar future programs.