SBA Suspends 870,000 Borrowers Over $39 Billion in Suspected Pandemic Fraud
Updated
Updated · Fox News · Oct 14
SBA Suspends 870,000 Borrowers Over $39 Billion in Suspected Pandemic Fraud
3 articles · Updated · Fox News · Oct 14
Summary
870,000 borrowers have been suspended by the SBA in what the agency called its largest-ever action against suspected pandemic-relief fraud, tied to an estimated $39 billion.
The crackdown follows years of scrutiny over COVID loan programs after the SBA inspector general estimated in 2023 that more than $200 billion may have gone to fraudsters, far above agency leadership's roughly $36 billion figure.
Kelly Loeffler's SBA has also tightened controls by closing loopholes that allowed loans in the names of children and dead people, and by auditing the 8(a) contracting program for the first time in nearly 50 years.
House Republicans are pushing to lock in the effort through new anti-fraud measures, including a law requiring quarterly SBA inspector-general reports to Congress and proposals to reward tips that help recover stolen funds.