Financial institutions are raising red flags about suspected fraud surrounding the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, according to the SBA’s Office of Inspector General.
Nearly 440 financial institutions ranging from small, local credit unions to major national institutions are alerting the SBA about suspected fraudulent EIDL loan applications. The IG's office identified $250 million in EIDL loans and advance grants given to potentially ineligible businesses and found $45.6 million in potentially duplicate payments.
Examples of suspicious activity reported by financial institutions include:
In some situations, financial institutions have frozen funds and are trying to contact the appropriate department in the SBA to provide information about the borrower and resolve the frozen funds.
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Last updated: 07/31/2020
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