🚨SBA suspends 111,620 California borrowers connected to $8.6 BILLION in suspected pandemic fraud:
California, just like Minnesota, invites criminals to abuse the system with socialist welfare policies. Fraud scaled up massively during the pandemic – and the Biden Admin failed… pic.twitter.com/fMlgPDYsNy
— Kelly Loeffler (@SBA_Kelly) February 6, 2026
SBA freezes over 100,000 California borrowers in sweeping $9B pandemic fraud crackdown
SBA Administrator Kelly Loeffler calls it the ‘most significant crackdown’ on pandemic loan abuse under Trump administration
The Small Business Administration (SBA) announced Friday it had suspended more than 100,000 California borrowers amid suspected fraud, with the alleged abuse totaling nearly $9 billion.
SBA Administrator Kelly Loeffler said the agency suspended 111,620 California borrowers linked to suspected fraudulent activity across SBA pandemic-era loan programs. Those borrowers received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans totaling more than $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,” Loeffler said in a statement.
What’s NOT confirmed yet:
There is no evidence that this action was politically targeted at California.
The SBA frames it as part of a state‑by‑state fraud review, with Minnesota cited as a previous example.
There is no evidence that all suspended borrowers committed fraud — these are suspected cases pending further investigation.