Labour has suspended the whip from Southend East and Rochford MP Bayo Alaba while the party investigates questions concerning Covid-era business loans.
Alaba referred himself to Labour's internal investigation process after questions were raised in a report by The Times about bounce-back loans received by businesses connected to him.
A Labour spokesperson said the party expected the highest standards from its elected representatives and could not comment further while the investigation was continuing.
Alaba said businesses associated with him had accessed financial support during the pandemic but strongly denied attempting to avoid his obligations.
"There has been no attempt to avoid my financial obligations, and I am wholeheartedly committed to ensuring that the liability is met in full," he said.
It is understood that the two loans are being repaid and are expected to be settled in full by the end of 2026.
The suspension is a precautionary party measure while the circumstances are examined. It does not establish wrongdoing, and no finding has been made against Alaba.
He will sit without the Labour whip while the investigation takes place.