SBA’s Guaranty Purchases for Paycheck Protection Program Loans

Inspection / Evaluation · Small Business Administration OIG · 2024-07-09 · about Small Business Administration

Summary

The Office of Inspector General (OIG) is issuing this Inspection report to assess the Small Business Administration’s (SBA) guaranty purchase process for Paycheck Protection Program (PPP) loans. The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the PPP to provide guaranteed SBA loans for eligible businesses, individuals, and nonprofits adversely impacted by the Coronavirus Disease 2019 pandemic. We assessed whether SBA reported and referred charged-off PPP loans to commercial credit reporting agencies and the U.S.

Recommendations (7)

#	Status	Text
1	Open	Review charged-off PPP loans to ensure all eligible loans are reported to commercial credit reporting agencies, as required.
2	Open	Require personnel to conduct periodic monitoring and reviews of SBA’s automated processes for PPP and future stimulus loan programs to ensure all eligible loans are reported to commercial credit reporting agencies, as required.
3	Open	Identify the credit reporting agencies to whom SBA must report current and delinquent loans for PPP and future stimulus loan programs.
4	Open	Review charged-off PPP loans to ensure that all eligible loans are referred to Treasury, as required.
5	Open	Require personnel to conduct periodic reviews of its automated Treasury referral process for PPP and future stimulus loan programs to ensure all eligible loans are referred to Treasury, as required.
6	Open	Conduct lender reviews to ensure lenders complied with their communication, servicing, and debt collection activity requirements. If not, require the lender to bring the loan into compliance or seek recovery of the guaranty paid by SBA as appropriate…
7	Open	Require lenders to submit evidence of communication, servicing, and debt collection activities with the borrower prior to guaranty purchase for PPP and future similar programs to foster and maintain program integrity.

Status

Text

Open

Review charged-off PPP loans to ensure all eligible loans are reported to commercial credit reporting agencies, as required.

Open

Require personnel to conduct periodic monitoring and reviews of SBA’s automated processes for PPP and future stimulus loan programs to ensure all eligible loans are reported to commercial credit reporting agencies, as required.

Open

Identify the credit reporting agencies to whom SBA must report current and delinquent loans for PPP and future stimulus loan programs.

Open

Review charged-off PPP loans to ensure that all eligible loans are referred to Treasury, as required.

Open

Require personnel to conduct periodic reviews of its automated Treasury referral process for PPP and future stimulus loan programs to ensure all eligible loans are referred to Treasury, as required.

Open

Conduct lender reviews to ensure lenders complied with their communication, servicing, and debt collection activity requirements. If not, require the lender to bring the loan into compliance or seek recovery of the guaranty paid by SBA as appropriate…

Open

Require lenders to submit evidence of communication, servicing, and debt collection activities with the borrower prior to guaranty purchase for PPP and future similar programs to foster and maintain program integrity.

Report

Summary

Recommendations (7)

Source