In collaboration with the White House Task Force to Eliminate Fraud, the U.S. Small Business Administration (SBA) announced the suspension of 7,800 Wisconsin borrowers tied to $375 million in suspected fraudulent Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) activity. The announcement comes as part of SBA’s ongoing state-by-state investigation into the abuse of taxpayer-funded programs intended to support small businesses and their workers during the pandemic.
To date, SBA has identified and suspended over 150,000 borrowers connected to over $10 billion in suspected PPP and COVID EIDL fraud. Suspended borrowers are prohibited from receiving future small business and disaster loans and are not eligible for other SBA programs, such as federal contracting in the 8(a) Business Development Program. Suspensions announced to date now include:
- 112,000 California borrowers tied to $8.6 billion in suspected fraud
- 27,000 Ohio borrowers tied to $1.1 billion in suspected fraud
- 6,900 Minnesota borrowers tied to $400 million in suspected fraud
- 1,500 Maine borrowers tied to $93 million in suspected fraud
- 7,800 Wisconsin borrowers tied to $375 million in suspected fraud.
In April, SBA launched its largest fraud enforcement action to date, and the largest referral package in agency history, by referring more than 560,000 suspected fraudulent borrowers tied to $22 billion in pandemic-era loans to the U.S. Department of the Treasury for collection.