Vice President JD Vance announced Monday that the Small Business Administration (SBA) has suspended nearly 870,000 borrowers from future federal small-business loans and other SBA programs over suspected fraud involving pandemic-era relief programs.

The borrowers are connected to an estimated $39 billion in suspected fraud involving the Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) program, according to SBA Administrator Kelly Loeffler. The action covers borrowers across 45 states, the District of Columbia and six U.S. territories.

“We think it makes sense that if you were caught stealing from the American taxpayer, you shouldn't be able to benefit from these loans anymore,” Vance said Monday at a fraud task force event at the FBI’s Kansas City field office.

The suspensions prevent affected borrowers from receiving future SBA small-business and disaster loans and from participating in certain federal contracting programs. Combined with earlier suspensions involving five states, the SBA said borrowers connected to approximately $49 billion in suspected fraud have now been suspended nationwide. The agency also said it has referred $22 billion in suspected fraudulent loans to the Treasury Department for collections.

Vance was joined in Kansas City by Attorney General Todd Blanche, FBI Director Kash Patel and Loeffler as the administration announced additional enforcement efforts targeting pandemic-era fraud. The Justice Department separately said its recent “Operation Heartland Surge” resulted in actions involving more than 160 defendants and approximately $245 million in intended taxpayer losses.

Vance said the administration’s review includes borrowers identified as having a high likelihood of fraud, meaning the 870,000 borrowers suspended have not necessarily been charged with or convicted of a crime. Officials said borrowers who believe they were incorrectly flagged can appeal the determination.

The SBA also announced “Operation No Doze,” which will begin sending final 30-day demand letters to borrowers suspected of PPP and EIDL fraud, starting with approximately 8,000 recipients in Kansas and Missouri. The letters will demand repayment and warn recipients of potential consequences if they fail to resolve their obligations.