SBA halts funding for 7,000 Minnesota borrowers due to suspected $400M pandemic loan fraud

• The Small Business Administration (SBA) has initiated a halt on funding for approximately 7,000 borrowers in Minnesota.
• This action is in response to a suspected fraud scheme involving an estimated $400 million.
• The fraudulent activities are related to the Paycheck Protection Program (PPP) and disaster loans distributed during the COVID-19 pandemic.
• A total of 6,900 of these borrowers are directly linked to the suspected fraudulent scheme.
• The SBA’s suspension aims to address and investigate the misuse of pandemic-related financial assistance.
• This crackdown reflects ongoing efforts to curb pandemic-related financial fraud and protect government resources.
• The SBA continues to collaborate with legal and investigative entities to address and resolve potential cases of fraud.

Source: https://www.foxnews.com/politics/sba-suspends-nearly-7000-minnesota-borrowers-over-suspected-400m-pandemic-loan-fraud)