‘Staggering’: Trump SBA Suspends 111,620 California Borrowers-Finds Nearly $9 Billion in Suspected Small Business Fraud
The Trump administration’s Small Business Administration announced Friday that the agency has suspended 111,620 California borrowers connected to $8.6 BILLION in suspected pandemic fraud.
In a press release, SBA Administrator Kelly Loeffler noted, “Once again, the Trump SBA is taking decisive action to deliver accountability in a state whose unaccountable welfare policies have created a culture of fraud and abuse at the expense of law-abiding taxpayers and small business owners.”
“Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud. This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years.
“As we did in Minnesota, we are actively working with federal law enforcement to identify the criminals who defrauded American taxpayers, hold them to account, and recoup the stolen funds. As we continue our state-by-state work, our message is clear: pandemic-era fraudsters will not get a pass under this Administration.”
Loeffler took to X to add, “California, just like Minnesota, invites criminals to abuse the system with socialist welfare policies. Fraud scaled up massively during the pandemic – and the Biden Admin failed to stop it.”
“In San Diego, I visited a single address tied to 14 different ‘small businesses’ that were formed during the pandemic, who received $2M+ in COVID-era loans that still haven’t been fully repaid.”
“The era of abuse is over.”
“Today, the SBA is announcing the suspension of 111,620 California borrowers connected to $8.6 billion in suspected PPP and EIDL fraud. We will pursue criminal referrals with the DOJ, and fight to claw every dollar back.”
“Under this Administration, any fraudster who broke the law will no longer get a free pass. All they’ll get is a free trip to jail.”
Watch:
SBA suspends 111,620 California borrowers connected to $8.6 BILLION in suspected pandemic fraud:
California, just like Minnesota, invites criminals to abuse the system with socialist welfare policies. Fraud scaled up massively during the pandemic – and the Biden Admin failed… pic.twitter.com/fMlgPDYsNy
— Kelly Loeffler (@SBA_Kelly) February 6, 2026
In January, Loeffler said the agency discovered, following a review of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals in Minnesota, nearly $400 million in potentially fraudulent loans—money that was supposed to keep small businesses afloat and American workers employed during the pandemic.
Loeffler said the agency reviewed thousands of pandemic-era loans approved in Minnesota and identified 7,900 PPP and EIDL loans connected to the suspended borrowers and suspended 6,900 Minnesota borrowers after uncovering the suspected fraud.
Trump SBA SUSPENDS Nearly 7,000 Minnesota Borrowers Amid Suspected PPP and EIDL Fraud
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