WASHINGTON, D.C — Today, following a visit to San Diego, U.S. Small Business Administration (SBA) Administrator Kelly Loeffler announced that the agency has suspended 111,620 California borrowers amid suspected fraudulent activity across SBA pandemic-era loan programs. In total, these borrowers received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans totaling over $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,” said SBA Administrator Kelly Loeffler. “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.”
These latest suspensions follow SBA’s recent action in Minnesota, where the agency also announced it suspended 6,900 borrowers associated with 7,900 potentially fraudulent PPP and EIDL loans worth approximately $400 million. Suspended borrowers are prohibited from executing new small business and disaster loans and are not eligible for other SBA programs such as federal contracting in the 8(a) Business Development Program.
