A SYSTEMATIC EXAMINATION OF PPP LOANS FOR POTENTIAL FRAUD
Integra FEC White Paper
In this paper we apply tools from forensic financial analysis on the PPP loan dataset, released by the U.S. Small Business Administration on July 10, 2020, and identify potentially suspicious loans with a focus on loans made to nonprofit organizations.
Our findings suggest that over $212 million in loans to nonprofits were not financially justified when compared to financials reported by nonprofits in their Form 990 filed with the IRS.
We also identify several interesting factors associated with a higher incidence of suspicious loans, including executive pay, issuing bank, industry and region.