Small Business Administration: Steps Needed to Address COVID-19 Loans' Susceptibility to Fraud - Government Accountability Office
Small Business Administration: Steps Needed to Address COVID-19 Loans' Susceptibility to Fraud - Government Accountability Office Small Business Administration: Steps Needed to Address COVID-19 Loans' Susceptibility to Fraud - Government Accountability Office Posted: 25 Mar 2021 09:15 AM PDT What GAO Found In April 2020, the Small Business Administration (SBA) quickly implemented the Paycheck Protection Program (PPP) and expedited the processing of Economic Injury Disaster Loans (EIDL) and a new EIDL advance program. These important programs have helped businesses survive during the very challenging COVID-19 pandemic. In an effort to move quickly on these initiatives, SBA put limited internal controls in place, leaving both programs susceptible to fraud. GAO found the following: PPP oversight. Given the immediate need for PPP loans, SBA implemented limited safeguards for approving PPP loans. Because ongoing oversight is