Small-Business Disaster Relief Program Target of Fraud, Watchdog Says

Lenders report thousands of suspicious requests to tap SBA’s Economic Injury Disaster Loan, or EIDL, program

WASHINGTON—The federal government’s disaster loan and grant program for small businesses has been subject to more than 5,000 complaints of suspected fraud from lenders, a watchdog agency warned Tuesday as it called for closer oversight of the program.

The Small Business Administration’s inspector general’s office said it had been “inundated with contacts to investigative field offices from financial institutions across the nation and the complaint hotline” regarding the Economic Injury Disaster Loan and EIDL Advance grant...

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