SBA Mistakenly Gave Away $692M In Duplicate PPP Loans
March 19, 2021—The Small Business Administration (SBA) mistakenly paid out $692 million in duplicate Paycheck Protection Program (PPP) loans, Fox Business reported.
The Small Business Administration's Office of the Inspector General said in a report released Monday that between April 3 and Aug. 19, lenders made more than one loan disbursement to 4,260 borrowers, including 2,689 with the same tax ID number and 1,571 with the same business name and address. There was no evidence that any borrowers intentionally exploited the program in order to obtain more than one loan.
In response to the report, the SBA said it would recover the improper payments and prevent loan forgiveness on the second loans—meaning some businesses may have to pay back the duplicate loan if they can.