# SBA's Guaranty Purchases for Paycheck Protection Program Loans
> **Review** by 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

- **Rec 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.
- **Rec 2** (Open): Explore alternative means of collections for PPP loans with an outstanding balance of $100,000 or less.
- **Rec 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…
## Source
- [oversight.gov report page](https://www.oversight.gov/reports/sbas-guaranty-purchases-paycheck-protection-program-loans)
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