Inspector General Report: SBA's Implementation of the PPP Loan
“Before the PPP, SBA’s largest single year in 7(a) lending volume was approximately $25.4 billion, in fiscal year 2017. Between April 3rd and May 6th, 2020, SBA lenders participating in the PPP approved 4,102,736 loans totaling more than $525.8 billion, an amount more than 20 times the largest year in SBA’s history...IN JUST 33 DAYS”
The Paycheck Protection Plan was created through the CARES Act, which was signed into law on March 27th, 2020. Since then millions of loans have been given out…but who are they going to? And is the PPP Loan administered through the SBA following both the law and spirit of the CARES Act? This Flash Report produced at the request of Senators Schumer (D-NY), Cardin (D-MD), and Brown (D-OH), and released by the Small Business Administration’s Inspector General on May 8 speaks to the implementation of the Paycheck Protection Program. The report finds that the SBA’s Interim Final Rules for implementing the PPP and its FAQs mostly aligned with the requirements of the CARES Act. However, it also identifies several areas where implementation has not fully aligned with the CARES Act: (1) prioritizing underserved and rural markets; (2) loan proceeds eligible for forgiveness; (3) guidance on loan deferments; and (4) registration of loans. The report provides recommendations for the SBA to consider to better align PPP requirements with the provisions of the CARES Act. In this post we link to the 40 page report that gives you all the findings of the SBA’s handling of half a trillion dollars. Here’s a great overview of the number of loans and how much has been lent as of May 6th, 2020.