WASHINGTON — Today, during a major fraud announcement in Kansas City, Missouri, alongside Vice President JD Vance, Attorney General Todd Blanche, FBI Director Kash Patel, and Assistant Attorney General Colin McDonald, SBA Administrator Kelly Loeffler announced that the U.S. Small Business Administration (SBA) suspended 870,000 U.S. borrowers connected to an estimated $39 billion in suspected fraudulent pandemic-era Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) activity. The nationwide action marks the culmination of the SBA’s state-by-state pandemic-fraud crackdown as a member of the White House Task Force to Eliminate Fraud. It is the agency’s largest suspension announcement to date, representing action against borrowers in 45 new states, six territories, and the District of Columbia.
The SBA previously announced suspensions of more than 150,000 borrowers tied to approximately $10 billion in suspected PPP and COVID EIDL fraud across five states: California, Ohio, Minnesota, Maine, and Wisconsin. Suspended borrowers are prohibited from receiving future SBA small-business and disaster loans and are ineligible for other SBA programs, including federal contracting through the 8(a) Business Development Program.
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
During today’s announcement, top officials from the U.S. Department of Justice also announced a slate of enforcement actions against alleged PPP and COVID EIDL fraudsters, including numerous indictments secured as part of Operation Heartland Surge.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Fraudsters took advantage of this country’s generosity when we were most vulnerable. It is disgraceful. Although the previous administration looked the other way, President Trump and Vice President Vance won’t. Fraudsters take note: We’re coming after you,” said Scott Brady, Executive Director of the White House Task Force to Eliminate Fraud.
