There is a “significant risk” of fraud for Paycheck Protection Program loans, the Government Accountability Office (GAO) said Thursday, urging the Small Business Administration to amp up efforts to respond to such risks.
In a report released Thursday, the government watchdog, which is charged with overseeing spending for the CARES Act, said that “Because of the number of loans approved, the speed with which they were processed, and the limited safeguards, there is a significant risk that some fraudulent or inflated applications were approved,” the GAO said.
