The Trump Administration plans to use private firms to audit Paycheck Protection Program (PPP) loans to find businesses that should not have received PPP loans according to a new report from the Government Accountability Office (GAO).
In a new oversight report on federal coronavirus spending, the GAO stated that the Small Business Administration (SBA) plans to have a contractor use an automated review tool to flag potentially questionable PPP loans over $2 million and then manually audit the flagged loans. The SBA would complete the audits with contract and federal staff, with a different contractor conducting a “quality assurance review” on a sample of loans.
The GAO report says that as of August 24, Treasury was working with the SBA to finalize specific review procedures that contractors and staff would follow.