Small Business Administration (SBA) Administrator Kelly Loeffler said Thursday night that her agency has suspended “6,900 Minnesota borrowers” over suspected fraudulent activity regarding COVID-era lending programs.

Loeffler said the SBA over the last week reviewed “thousands” of potentially “fraudulent” Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) payouts that were approved in Minnesota.

“Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity. In total, these borrowers were approved for 7,900 PPP and EIDL loans worth approximately $400M,” Loeffler said on social platform X.

She said the implicated individuals would be banned from all SBA loan programs, “including disaster loans, going forward. We will also refer every case, where appropriate, to federal law enforcement for prosecution and repayment.”

The suspension comes as the House Committee on Small Business started an investigation into “fraud and concealment” within the PPP and EIDL, both programs that were established during the pandemic.

Loeffler said on Monday that SBA will pause annual grants to Minnesota amid the ongoing probe into the COVID-era programs.

“SBA is pausing annual funding to Minnesota while we investigate $430 million in suspected PPP fraud across the state,” she said on X.

More here

Tagged: Politics BACK TO HOMEPAGE