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Nearly 7,000 Minnesota borrowers suspended from SBA loans over suspected pandemic fraud.
The Small Business Administration has suspended nearly 7,000 Minnesota borrowers from all SBA loan programs due to suspected fraud in pandemic-era Paycheck Protection Program and Economic Injury Disaster Loan applications.
The move, affecting about $400 million in loans, stems from an ongoing review that identified irregularities, though specific details on the fraud were not disclosed.
SBA Administrator Kelly Loeffler said the suspensions are precautionary and part of broader efforts to protect federal funds, with cases being referred to law enforcement.
Affected borrowers may appeal or provide documentation, but the process is still being developed.
Casi 7.000 prestatarios de Minnesota suspendidos de los préstamos de la SBA por sospechas de fraude pandémico.