SBA launches major crackdown on pandemic loan fraud, suspending over 100,000 California borrowers
The SBA has suspended 111,620 borrowers in California who are suspected of committing fraud related to pandemic relief loans. These borrowers received approximately $8.6 billion in PPP and EIDL loans.
The Small Business Administration has suspended over 100,000 California borrowers due to suspected fraud in pandemic loan programs. SBA Administrator Kelly Loeffler announced the suspension of 111,620 borrowers who received 118,489 PPP and EIDL loans worth approximately $8.6 billion.
Loeffler described this as the most significant pandemic fraud crackdown and stated that the Trump administration is working with federal law enforcement to hold fraudsters accountable. Similar investigations in Minnesota identified 6,900 suspended borrowers and nearly $400 million in potentially fraudulent loans. The SBA previously reported that at least $2.5 million was connected to a Somali-linked fraud scheme in Minneapolis.
The agency is continuing state-by-state investigations to recover stolen funds and protect taxpayers.
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