The defendants allegedly tried to steal a total of $175 million from the program, which some had feared would be a magnet for fraud.
Finance executives are more optimistic about the domestic economy, but they expect a slow recovery.
More than 100 executives said small businesses need "much more significant and sustained support" than the PPP to weather the COVID-19 pandemic.
Under proposed legislation, smaller businesses would be targeted, and they would have to show a 50% revenue drop.
The GAO says "minimal" underwriting standards left the $670 billion small business rescue program vulnerable to fraud.
Finance will have to make some judgments when trying to present a normalized view of ongoing financial performance.
“Congress must once again act urgently to support our most vulnerable small businesses through this crisis."
The program has given out 4.4 million forgivable loans so far.
The bill would allow small businesses seeking loan forgiveness to use a smaller share of the money on payroll.
Fed economists said there was actually a negative correlation between COVID-19 cases per capita and the share of small firms getting PPP funding.
New guidance from the SBA comes after a public outcry over large companies receiving hundreds of millions of dollars in loans.
The burger chain has faced operating losses of over $1.5 million each week amid the COVID-19 lockdown.
