SBA's Guaranty Purchases for Paycheck Protection Program Loans
Review · Small Business Administration OIG · 2022-09-30 · about Small Business Administration
Report
Title
SBA's Guaranty Purchases for Paycheck Protection Program Loans
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Review
Publication date
2022-09-30
Summary
The Office of Inspector General (OIG) is issuing this management advisory to express concerns regarding the U.S. Small Business Administration’s (SBA) decision to end collections on purchased Paycheck Protection Program (PPP) loans with an outstanding balance of $100,000 or less.In anticipation of a significant number of delinquent PPP loans that lenders will submit for guaranty purchase, we began reviewing SBA’s process for approving PPP guaranty purchases.
Recommendations (3)
#
Status
Text
1
Closed
Stay the April 27, 2022 decision to end collections on purchased PPP loans with an outstanding balance of $100,000 or less until a comprehensive cost benefit analysis is conducted.
2
Open
Explore alternative means of collections for PPP loans with an outstanding balance of $100,000 or less.
3
Open
Conduct an initial and periodic cost benefit analysis on PPP purchase guarantees with comprehensive estimates to sufficiently assess whether the cost of collecting loans of $100,000 or less is more than the recovery amount and pursue collections based…