Loeffler: SBA Suspends Over 100,000 California Borrowers In Pandemic-Loan Fraud Sweep
The U.S. Small Business Administration said Friday it has suspended more than 100,000 California borrowers amid suspected fraud tied to pandemic-era relief programs, a move the agency said represents one of the largest enforcement actions since Covid-19 aid was rolled out. Kelly Loeffler, administrator of the Small Business Administration, during a news conference at the Capitol in Washington, D.C., Oct. 27, 2025. (Kent Nishimura/Bloomberg via Getty Images) 111,620 California borrowers were linked to suspected fraudulent activity involving Paycheck Protection Program and Economic Injury Disaster Loan funds. Those borrowers received 118,489 loans totaling more than $8.6 billion, according to the agency. SBA Administrator Kelly Loeffler said the action reflects a broader crackdown on abuse of emergency lending programs created during the pandemic. “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. ‘WE’RE PROSECUTING’: SBA Administrator Kelly Loeffler says the agency suspended more than 111,000 …


