$8B in PPP loans made last week; lawmakers review fraud
Lenders are continuing to get small businesses access to credit through the Small Business Administration's (SBA) paycheck protection program (PPP). According to new data released by the agency, roughly $8 billion of loans were approved over the past week. While the program runs through March 31, the House Small Business Committee Tuesday discussed the SBA's implementation of its coronavirus relief programs, including reports of fraud.
The committee heard from Mike Ware, SBA's inspector general, and William Shear, U.S. Government Accountability Office's (GAO) director of financial markets and community investment. During their testimony, Ware and Shear detailed the SBA's efforts to get program funds – including through the PPP and economic injury disaster loans (EIDLs) – out quickly to businesses facing financial hardships. However, they noted that some internal controls and fraud prevention efforts were not effectively in place.
Shear outlined steps the SBA has taken to improve PPP and EIDL oversight, address improper payments, analyze data, assess fraud risks, and audit financial statements to ensure integrity of the programs.
Both the GAO and Office of Inspector General have previously released reports flagging potential risks for the SBA to address in the programs. The Department of Justice has pursued reported fraud. In December, the DOJ revealed the agency has secured charges against more than 90 individuals who fraudulently obtained PPP loans, with losses totaling more than $250 million.
Ahead of the hearing, NAFCU wrote the committee to highlight credit unions' participation in the PPP and detailed ways improvements could still be made. The association also met with SBA Associate Administrator Patrick Kelley and members of the agency's Office of Capital Access to ensure credit unions can effectively lend to small businesses across the nation.
So far this year, almost 5 million PPP loans have been made totaling more than $240 billion. More than 840 credit unions with less than $10 billion in assets have participated as lenders, providing almost 131,000 loans totaling $4.6 billion.
Add to Calendar 2021-07-13 14:00:00 2021-07-13 14:00:00 Fair Lending - What Your Board Needs to Know The new administration has made it crystal clear that fair lending compliance is at the top of its financial services agenda, and non-compliance is not an option. It’s time to dust off that fair lending program and make sure your preventive and detective controls are fully functioning as designed. This webinar will help you understand what is going on in fair lending compliance at credit unions, so that you can make sure your board is up to speed on key regulatory risks and paying attention to key fair lending risk indicators. Topics include, fair lending risk management, understanding fair lending risk in underwriting and pricing, and key considerations when reporting fair lending findings. Key Takeaways Identify and analyze potential fair lending risks in a practical manner. Understand recent fair lending enforcement case studies. Craft a strong message to the board on managing fair lending risk. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until July 13, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Risk titles Compliance titles Legal staff Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar. NCCOs will receive 1.0 CEUs for participating in this webinar. CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Identify and analyze potential fair lending risks in a practical manner. Understand recent fair lending enforcement case studies. Craft a strong message to the board on managing fair lending risk. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
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