The SBA has suspended nearly 7,000 Minnesota borrowers after reviewing suspected fraudulent PPP and EIDL loans totaling $400 million, officials say.
SBA Suspends nearly 7,000 Minnesota borrowers
The U.S. Small Business Administration (SBA) has suspended thousands of borrowers in Minnesota following a large-scale review of pandemic-era relief loans, according to a statement shared on X by Kelly Loeffler, Administrator of the SBA.
Loeffler said the agency examined thousands of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications approved during the COVID-19 pandemic. As a result of the review, the SBA has suspended 6,900 borrowers amid concerns of potential fraudulent activity.
In total, the affected borrowers were approved for approximately 7,900 loans valued at nearly $400 million, according to the SBA. Loeffler stated that all individuals involved will be permanently barred from future SBA loan programs, including disaster assistance loans.
The SBA also plans to refer qualifying cases to federal law enforcement for potential prosecution and recovery of funds. Loeffler described the action as part of a broader effort to hold accountable those who misused taxpayer-funded relief programs.
“After years, the American people will finally begin to see accountability for those who took advantage of emergency programs meant to support small businesses,” Loeffler wrote, adding that Minnesota is only the first state impacted by the ongoing review process.
The announcement signals increased federal scrutiny of pandemic-era lending programs, which distributed hundreds of billions of dollars nationwide to help businesses survive economic disruptions caused by COVID-19.
Follow Dalmar TV on Facebook for the Latest News
