Paycheck Protection Program: SBA Added Program Safeguards, but Additional Actions Are Needed, Report to Congressional Addressees [open pdf - 2MB]
From the Highlights: "Since March 2020, Congress has provided commitment authority of about $814 billion for PPP [Paycheck Protection Program], which provides small businesses with low-interest loans that SBA [Small Business Administration] fully guarantees. The CARES [Coronavirus Aid, Relief, and Economic Security] Act includes a provision for GAO [Government Accountability Office] to monitor funds provided for the COVID-19 [coronavirus 2019] pandemic. This report examines (1) safeguards that SBA put in place during the PPP loan approval process, (2) the PPP loan forgiveness process, including processes for unforgiven loans, and (3) SBA's oversight of PPP loans and lenders. GAO reviewed SBA documentation; surveyed a generalizable sample of PPP lenders; analyzed data on loan forgiveness applications; compared SBA processes against federal guidance on credit programs; and interviewed staff from SBA, the Department of the Treasury, and four trade associations representing lenders. GAO recommends that SBA (1) finalize a process for claiming the PPP loan guarantee, (2) implement the statutory requirement to purchase PPP loans in advance of loan forgiveness or seek statutory exceptions to the requirement, (3) finalize procedures for the steps of its loan review process that are not yet documented, and (4) develop and implement a process to ensure timely communication with lenders. SBA generally agreed with the four recommendations, including seeking statutory flexibility or repeal of the requirement to purchase PPP loans in advance of loan forgiveness."
Government Accountability Office: https://www.gao.gov/