Trump Admin Suspends 111,620 ‘California Borrowers’ for Allegedly Committing Billions in Pandemic-Era Fraud
6th February 2026
Small Business Administration Administrator Kelly Loeffler announced Friday her agency has suspended 111,620 borrowers in California over alleged fraud related to pandemic-era loan programs.
These borrowers had secured a total of 118,489 Paycheck Protection Program and Economic Injury Disaster Loans loans which amounted to more than $8.6 billion, according to an SBA news release. Loeffler said in a statement that the SBA is “taking decisive action” in an effort to “deliver accountability in a state whose unaccountable welfare policies have created a culture of fraud and abuse.”
“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. “Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud.”