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GAO report makes PPP recommendations; SBA, Treasury update FAQs
Last week, the Government Accountability Office (GAO) released a report to Congress, as required by the CARES Act, with opportunities to improve the government response and relief efforts – including the Small Business Administration’s (SBA) paycheck protection program (PPP).
In the report, the GAO recommends that the SBA should develop and implement plans to identify and respond to risks in the PPP to ensure program integrity, achieve program effectiveness, and address potential fraud. The SBA’s response is included in the report, and states that the GAO does not account for the safeguards the agency has put into place in the interim final rules issued on loan review and forgiveness.
The GAO also recommends that Congress provide the Treasury Department with access to the Social Security Administration’s full set of death record and require the Treasury to consistently use it as a tool to help reduce improper payments, specifically for economic impact stimulus payments.
Read highlights from the report and the full text here.
The SBA and Treasury have also updated their FAQs to support changes made by the Paycheck Protection Program Flexibility Act (H.R. 7010) to the loan maturity date. Access NAFCU's regularly updated PPP FAQs here.
In addition, the SBA issued an updated interim final rule on the PPP related to the eligibility of fishing boat owners.
Further information is accessible on the SBA's and Treasury's websites. NAFCU will continue to monitor potential changes to the PPP and remain in contact with the SBA, Treasury Department, and Congress to ensure credit unions can lend effectively through the program.