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Report File
Date Issued
Submitting OIG
Small Business Administration OIG
Other Participating OIGs
Small Business Administration OIG
Agencies Reviewed/Investigated
Small Business Administration
Report Number
21-09
Report Description

SBA OIG reviewed PPP regulations and the Paycheck Protection Program and Health Care Enhancement Act, in addition to guidance published in SBA’s PPP Interim Final Rules and PPP Frequently Asked Questions.We determined SBA did not always have sufficient controls in place to detect and prevent duplicate PPP loans. As a result, lenders made more than one PPP loan disbursement to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. These disbursements totaled about $692 million for PPP loans approved from April 3 through August 9, 2020.We recommended in part that SBA:1. Review identified potential duplicate disbursements for eligibility and take action to recover any improper payments2. Review controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate3. Strengthen E-Tran controls for future PPP-type programs to ensure the controls align with program requirements and are active at all times4. Strengthen controls and guidance for lenders to ensure lenders meet program requirements for future PPP type programs

Report Type
Review
Special Projects
Pandemic
Agency Wide
Yes
Number of Recommendations
4

Open Recommendations

This report has 1 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

Review the OIG identified potential duplicate disbursements for eligibility and take action to recover any improper payments as applicable

Small Business Administration OIG

United States