House Passes PPP Extension Bill, As IG Reports Duplicate Loans Made by SBA

The Small Business Administration’s Inspector General has issued a report finding that in the first batch of Paycheck Protection Program loans last year, 4,260 borrowers got two PPP loans when they only should have received one. The SBA intends to not forgive those duplicate loans, but to prevent duplication from happening again, the SBA has added controls that are causing delays and a logjam in loan processing this cycle, raising concerns that businesses will be caught without a loan when the program ends on March 31. The House has now passed legislation that would extend the PPP to the end of May.

Biden Administration Promises Smoother PPP Process

The Biden Administration has been studying the Paycheck Protection Program loan processes and has made some changes designed to smooth the process, cut down on fraud, and give the smallest businesses access to the loans. For two weeks beginning on Wednesday, PPP applications will be limited to businesses with fewer than 20 employees. Other changes have been made to the program too.