The U.S. Small Business Administration has suspended 27,486 Ohio borrowers linked to about $1.1 billion, around ₹10,459 crore, in suspected fraudulent activity involving pandemic-era Paycheck Protection Program and COVID Economic Injury Disaster Loan funds, the agency announced on June 4. The action was taken in consultation with the White House Task Force to Eliminate Fraud and was announced alongside new enforcement steps in Ohio.
Ohio Borrowers Barred From SBA Program Access
The suspended borrowers are now prohibited from receiving future SBA small business and disaster loans. They are also ineligible for other SBA programmes, including federal contracting participation through the 8(a) Business Development Program.
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The agency said the Ohio suspensions are part of a broader state-by-state effort to identify borrowers suspected of defrauding pandemic relief loan programmes. Similar suspension actions have previously been announced against borrowers in Minnesota, California and Maine.
Four Ohio Individuals Charged In Separate Case
Separately, the Justice Department has charged four Ohio individuals in an alleged conspiracy to defraud the government of more than $1.4 million, around ₹13.31 crore, in COVID-19 relief funds. The defendants are accused of submitting fraudulent PPP loan applications on behalf of businesses, leading the SBA and lenders to approve and later forgive the loans.
According to the agency, the defendants allegedly provided false information in their applications and misused loan proceeds for personal expenses. If convicted, they could face penalties including restitution, fines and imprisonment.
Wider Pandemic Fraud Recovery Push
The SBA said the latest action follows a wider enforcement drive aimed at recovering taxpayer funds and pursuing suspected pandemic-era fraud. In April, the agency referred more than 560,000 suspected fraudulent borrowers tied to $22 billion, around ₹2.09 lakh crore, in pandemic-era loans to the U.S. Department of the Treasury for collection.
The agency said it continues to coordinate with federal law enforcement partners and its Office of Inspector General to pursue recoveries, civil penalties and criminal penalties where appropriate. The SBA has described the Ohio action as part of its continuing review of suspected fraud in states across the country.
