# SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans
> **Inspection / Evaluation** by 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

- **Rec 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…
- **Rec 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.
## Source
- [oversight.gov report page](https://www.oversight.gov/reports/sbas-handling-potentially-fraudulent-paycheck-protection-program-loans)
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