SBA suspends nearly 7,000 Minnesota borrowers over suspected $400M pandemic loan fraud

The Small Business Administration (SBA) announced Thursday that it suspended 6,900 Minnesota borrowers after uncovering what it says is widespread suspected fraud.

SBA Administrator Kelly Loeffler said the agency reviewed thousands of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans approved in Minnesota, and identified nearly $400 million in potentially fraudulent loans tied to borrowers in Minnesota.

"These individuals will be banned from all SBA loan programs...