by WorldTribune Staff / 247 Real News February 8, 2026
The Trump Administration has suspended 111,620 borrowers in California for alleged fraud related to pandemic-era loan programs.
Small Business Administration (SBA) Administrator Kelly Loeffler announced Friday that those borrowers had secured a total of 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) funding which amounted to 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.
“This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years. As we did in Minnesota, we are actively working with federal law enforcement to identify the criminals who defrauded American taxpayers, hold them to account, and recoup the stolen funds. As we continue our state-by-state work, our message is clear: pandemic-era fraudsters will not get a pass under this administration.”
Loeffler also wrote in a statement posted to X on Friday that “In San Diego, I visited a single address tied to 14 different ‘small businesses,’ that were formed during the pandemic, who received $2M+ in COVID-era loans that still haven’t been fully repaid,” adding that “the era of abuse is over.”
In January, Loeffler similarly announced that the SBA was suspending thousands of borrowers in Minnesota over “suspected fraudulent activity” in connection with pandemic-era lending programs.
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