The Small Business Administration announced Friday it has suspended more than 100,000 California borrowers amid suspected fraud tied to pandemic-era loan programs, with alleged abuse totaling nearly $9 billion.
SBA Administrator Kelly Loeffler said the agency froze 111,620 California borrowers connected to suspected fraudulent activity across Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Those borrowers received 118,489 loans totaling more than $8.6 billion.
“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,” Loeffler said in a statement.
“Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,” she continued. “This staggering number represents the most significant crackdown on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden administration tolerated for years.”
Loeffler said the agency is coordinating with federal law enforcement as part of a broader state-by-state crackdown under the Trump administration.
“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,” she said. “Pandemic-era fraudsters will not get a pass under this administration.”
The announcement follows similar action taken last month in Minnesota, where the SBA suspended roughly 6,900 borrowers after uncovering what it described as widespread suspected fraud.
According to the agency, a review of PPP and EIDL loans approved in Minnesota identified nearly $400 million in potentially fraudulent loans, including approximately 7,900 loans issued during the COVID-19 pandemic.
The SBA has previously said at least $2.5 million in pandemic-era PPP and EIDL funds were tied to a Somali-linked fraud scheme based in Minneapolis.
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