Evaluation of SBA’s Eligibility and Forgiveness Reviews of Paycheck Protection Program Loans Made to Borrowers with Treasury’s Do Not Pay Data Matches

Inspection / Evaluation · Small Business Administration OIG · 2024-02-22 · about Small Business Administration

Report

Title

Submitting OIG

Small Business Administration OIG

Component agency

Small Business Administration

Type

Inspection / Evaluation

Publication date

2024-02-22

Summary

This report is a follow up to SBA OIG Report Number 21-06, Paycheck Protection Program (PPP) Loan Recipients on the Department of Treasury’s (Treasury) Do Not Pay (DNP) List, which reported SBA did not use Department of Treasury (Treasury) DNP data to screen borrowers for eligibility prior to approving loans originated before August 8, 2020 (PPP round one).

Recommendations (7)

#	Status	Text
1	Open	Review the 1,799 PPP loans totaling over $89 million that matched a DNP data source to ensure eligibility requirements were met and seek remedy or repayment of all loans deemed ineligible.
2	Open	Review the 49 PPP loans totaling approximately $3.5 million and the 43 loans totaling approximately $7.2 million to ensure borrowers met eligibility requirements and seek remedy or repayment of loans deemed ineligible.
3	Open	Review PPP loans in which the DNP hold codes were cleared to 1) identify those cleared using pre-decisional memos and 2) those cleared without sufficient evidence to support the reviewer’s loan decision and seek remedy or repayment of loans deemed…
4	Open	Develop and implement controls, such as supervisory reviews, to ensure PPP loans and loans for future stimulus programs with DNP matches receive manual reviews, as required. The reviews should ensure that pre-decisional memos are not used to clear DNP…
5	Open	Develop and implement clear guidance requiring responsible officials to maintain documentary evidence used to support loan decisions in the loan files.
6	Open	Review the 59,893 PPP applications that matched a DNP data source to ensure borrowers met eligibility requirements and seek remedy or repayment of loans deemed ineligible.
7	Open	Review the additional 47,940 PPP loans totaling over $1.7 billion, identified through the DNP data match, to ensure borrowers met the eligibility requirements and seek remedy or repayment of loans deemed ineligible.

Status

Text

Open

Review the 1,799 PPP loans totaling over $89 million that matched a DNP data source to ensure eligibility requirements were met and seek remedy or repayment of all loans deemed ineligible.

Open

Review the 49 PPP loans totaling approximately $3.5 million and the 43 loans totaling approximately $7.2 million to ensure borrowers met eligibility requirements and seek remedy or repayment of loans deemed ineligible.

Open

Review PPP loans in which the DNP hold codes were cleared to 1) identify those cleared using pre-decisional memos and 2) those cleared without sufficient evidence to support the reviewer’s loan decision and seek remedy or repayment of loans deemed…

Open

Develop and implement controls, such as supervisory reviews, to ensure PPP loans and loans for future stimulus programs with DNP matches receive manual reviews, as required. The reviews should ensure that pre-decisional memos are not used to clear DNP…

Open

Develop and implement clear guidance requiring responsible officials to maintain documentary evidence used to support loan decisions in the loan files.

Open

Review the 59,893 PPP applications that matched a DNP data source to ensure borrowers met eligibility requirements and seek remedy or repayment of loans deemed ineligible.

Open

Review the additional 47,940 PPP loans totaling over $1.7 billion, identified through the DNP data match, to ensure borrowers met the eligibility requirements and seek remedy or repayment of loans deemed ineligible.

Report

Summary

Recommendations (7)

Source