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.
The Paycheck Protection Program has "enjoyed broad-based participation from lenders of all sizes and a wide array of industries and businesses."
The Fed's latest moves in response to the coronavirus crisis take it "well beyond the lender-of-last-resort functions it played" during the Great Recession.
Lenders fear the launch of the $350 billion program could be "a disaster that could dwarf the failed kickoff of the Obamacare enrollment web site in 2013."
“We are cautiously optimistic that this will provide the cash flow that small businesses needed yesterday."
