# SBA’s Guaranty Purchases for Paycheck Protection Program Loans
> **Inspection / Evaluation** by Small Business Administration OIG · 2024-07-09
> *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:** Inspection / Evaluation
- **Publication date:** 2024-07-09

## 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

- **Rec 1** (Open): Review charged-off PPP loans to ensure all eligible loans are reported to commercial credit reporting agencies, as required.
- **Rec 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.
- **Rec 3** (Open): Identify the credit reporting agencies to whom SBA must report current and delinquent loans for PPP and future stimulus loan programs.
- **Rec 4** (Open): Review charged-off PPP loans to ensure that all eligible loans are referred to Treasury, as required.
- **Rec 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.
- **Rec 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…
- **Rec 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.
## Source
- [oversight.gov report page](https://www.oversight.gov/reports/sbas-guaranty-purchases-paycheck-protection-program-loans-0)
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