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Covington woman submits guilty plea in federal loan case
Gavel

ATLANTA—Covington woman Rena Barrett submitted a guilty plea on Monday to making false statements to the Small Business Administration (SBA) in connection with fraudulent COVID-19 loan applications.

According to a news release from The United States Department of Justice (DOJ), Northern District of Georgia, Barrett, 45, was a loan officer with the SBA. She became an SBA employee in October 2020. The following May, she fraudulently applied for a $170,000 Economic Injury Disaster Loan.

“SBA initially declined to approve this loan, but in July 2021, Barrett approved the loan herself,” the news release stated. “SBA shortly thereafter discovered that Barrett had abused her position by approving that loan and other loans she or her relatives submitted.”

The DOJ said that Barrett attempted to obtain nearly $550,000 from the SBA and reportedly received nearly half of that sum before being discovered. 

“The Economic Injury Disaster Loan program provided critical relief to small businesses and supported our economy during the COVID-19 pandemic,” said Theodore S. Hertzberg, interim United States Attorney for the Northern District of Georgia, in the news release. “It is intolerable that Barrett—who was entrusted to process loans for desperate small businesses—placed her personal greed ahead of doing her job honestly. With the help of our law enforcement partners, we are committed to rooting out and punishing government employees who betray the public’s trust.”

Barrett’s sentencing is scheduled for Nov. 12.

The news release states that Barrett’s case is being investigated by the SBA, as well as the Office of Inspector General and Homeland Security Investigations (HSI). Her case is being prosecuted by Assistant U.S. Attorney Alex R. Sistla.

“Government employees who exploit their positions for personal gain betray the public trust and undermine critical programs designed to help those in need,” said Steven N. Schrank, the Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “HSI remains steadfast in its commitment to working with our partners to hold accountable those who abuse their authority and harm the integrity of pandemic relief efforts.”