From Fox News: The federal Small Business Administration suspended more than 111,000 California borrowers after uncovering $8.6 billion in suspected fraudulent activity linked to the COVID pandemic, SBA Administrator Kelly Loeffler announced Friday.
The SBA reported that all in, it suspended 111,620 California borrowers who received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans, totaling $8.6 billion.
PPP loans were a COVID-era federal relief program that gave small businesses money to keep workers on the payroll, while EIDL loans are part of an SBA program that provides low-interest disaster relief loans to help businesses survive during times of diaster, including the pandemic.
“We have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,” Loeffler said in a press release on Friday. “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.”
“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,” Loffler added.
California Attorney General Rob Bonta said Thursday that the Trump administration was promoting “baseless claims” of persistent fraud in the state.
Meanwhile, Bonta’s office said that California has recovered nearly $2.7 billion in various fraud schemes over the last 10 years.
Governor Newsom’s Press Office X account mocked the SBA announcement, saying, “OMG. The Trump Administration found MAJOR FRAUD in programs THEY control, Newsom’s Press Office’s X account posted, linking to a New York Post exclusive on the announcement.
“The state has no role running / administering these programs.Were they hiding this??? California doesn’t hide fraud … we fight it. Nearly 1,000 arrests + over $125 billion STOPPED under @CAGovernor Gavin Newsom.”
‘WE’RE PROSECUTING’: SBA Administrator Kelly Loeffler says the agency suspended more than 111,000 California borrowers after uncovering $8.6 billion in suspected fraudulent activity linked to the COVID pandemic:
“We’re gonna continue to work with our federal partners to ensure… pic.twitter.com/qBg3eHZrJL
— Fox News (@FoxNews) February 7, 2026
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