The U. S. Small Business Administration (SBA) has suspended over 100,000 borrowers in California due to suspected fraud related to pandemic relief loans.
• Suspensions: 111,620 borrowers were linked to possible fraud involving the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
• Loan Amount: These borrowers received 118,489 loans totaling more than $8.6 billion.
• Crackdown: Administrator Kelly Loeffler stated that this action is part of a larger initiative to combat misuse of emergency funding created during the pandemic, indicating a need for accountability.
• Previous Actions: This California crackdown follows similar enforcement in Minnesota, where 6,900 borrowers were flagged for suspicious activity.
• Ongoing Investigations: The SBA's review of pandemic-related loans continues, with further actions expected as part of the agency's commitment to recoup fraudulently obtained funds.
The SBA's efforts reflect a significant push to address fraud amid claims of insufficient enforcement in recent years, stressing that those who exploited pandemic assistance will face legal repercussions.
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