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Writer's pictureKen Larson

SBA Lenders Make $692 Million In Duplicate PPP Disbursements To 4,260 Borrowers


“SBA INSPECTOR GENERAL”


“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.

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"We recommended in part that SBA:

  1. Review identified potential duplicate disbursements for eligibility and take action to recover any improper payments

  2. Review controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate

  3. Strengthen E-Tran controls for future PPP-type programs to ensure the controls align with program requirements and are active at all times

  4. Strengthen controls and guidance for lenders to ensure lenders meet program requirements for future PPP type programs

ThE Office of Inspector General (OIG) issued a Flash Report on 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. You may review the report by CLICKING HERE: https://www.sba.gov/sites/default/files/2021-03/SBA%20OIG%20%20Report%2021-09.pdf?utm_medium=email&utm_source=govdelivery "


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