The Small Business Administration did not always send written notice to businesses that took Paycheck Protection Program loans that subsequently were sent to collections, a lapse the agency attributes to a breakdown in its automated systems.
The lapse was detailed in a new report from the SBA’s Office of Inspector General, which found the agency did not send written notices on 5,456 PPP loans totaling $1.5 billion.
The expected communication would have provided delinquent PPP borrowers with notice that their debt was being sent to the Treasury Department and would have urged those borrowers to negotiate a payment plan or pay the loan in full.
