The domestic watchdog detects signs of “widespread potential fraud” in the SBA’s disaster loan program

WASHINGTON, July 28 (Reuters) – The US government agency’s internal watchdog responsible for managing emergency loans and COVID-19 grants to owners of small businesses and nonprofits said it found “strong indicators of widespread potential fraud “in the disaster loan program.

The US Inspector General’s Small Business Administration (SBA) office said he was “inundated” with contacts with field investigation offices, receiving reports of over 5,000 cases of suspected fraud by financial institutions that they received deposits for economic injury loans through the Economy Injury Disaster Loan and Advance Grant Program, according to a public note. (Report by Chris Prentice Additional report by Lawrence Delevingne Edited by Jonathan Oatis)

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