Just one day after Vice President JD Vance visited Maine and promised to crack down on the massive amount of fraud being exposed by The Maine Wire, the Small Business Administration (SBA) took a concrete step to end Covid-era loan fraud in the state.
[RELATED: Mills Claims She’s Tough on Fraud In Response to Vance Visit…]
SBA Administrator Kelly Loeffler announced on Friday that “the crackdown is here,” making good on Vice President Vance’s promise.
“The crackdown is here. In full support and collaboration with @VP and @WHFraudTF, SBA is announcing the suspension of about 1,500 borrowers in Maine associated with $93 million in potentially fraudulent PPP and EIDL loans. Like those who were suspended in California and Minnesota, these individuals will be prohibited from receiving any further SBA support,” said Loeffler on X.
“State by state, we’re identifying fraudsters – and ending their open season on taxpayer-funded programs,” she added.
Loeffler promised to suspend the loans of 1,500 borrowers who have taken advantage of COVID-era PPP and EIDL government loans.
The suspension aims to target a suspected $93 million in fraudulent loans. The small business loans, implemented during the COVID-19 pandemic response, aimed to help businesses cope with the loss of revenue caused by the draconian government response to the virus.
In many cases, the “loans” are fully forgivable, allowing them to act essentially as grants to be paid for by the taxpayers.
Bad actors have been able to take advantage of the programs to defraud the taxpayers of millions. Multiple Mainers have already been convicted of fraud in connection with PPP loans.
[RELATED: Lewiston Man Admits to Lying for $20k PPP Loan, Faces 20 Years in Prison: DOJ…]
The SBA action follows similar loan suspensions in California and Minnesota, amid the fraud crackdowns in those states.
Kelly Loeffler needs to be fired and investigated. “1,500 borrowers who have taken advantage of COVID”. The plandemic has been over for two – three years and Loeffler is just getting around to this now?
I love how all the lobstermen were able to get PPP loans…
https://projects.propublica.org/coronavirus/bailouts
Belfast coop claimed 81 employees and was handed $382,000
as a business owner, i thought about applying for PPP loan. the state’s attitude made Covid scary with it’s enforcement. Decided to take month off and tough it out. Used the time to research bitcoin. business took a hit, survived but wished i never stopped. The state blew that one
Hey Maine Wire:
How about some lists of these scumbags that have been convicted?
Maybe a monthly tally for the honest people to peruse.
Mark Violet: thankyou for being brave and doing the responsible thing. I wish that we had more Mainers with the same mindset.
Dr. Ed / Why shouldn’t the lobstermen have gotten the loans
It is about time. We all know business owners who fraudulently recieved ppp loans. Aroostook county is full of them. Why would a local oil company receive millions in loans when covid had no effect on their bottom line? Fraud. Daigle oil alone recieved over 4 million total. Disgraceful. Logging companies never slowed production yet also recieved millions. A complete and thorough investigation must be conducted and an example made of all guilty parties.
What does “suspend borrowers” mean? You gave out the money already? How are you going to get it back? Are you seizing assets? Is anyone getting arrested? This is as effective as all the sternly worded letters the Republicans in congress keep issuing.