SBA Suspends 111,620 California PPP and EIDL Borrowers Over $8.6B in Suspected COVID Loan Fraud
The Small Business Administration has suspended 111,620 California PPP and EIDL borrowers over roughly $8.6 billion in suspected pandemic loan fraud — a figure Administrator Kelly Loeffler said amounted to “at least $9 billion” and framed as evidence of “corruption that the Biden Administration tolerated for years,” an escalation after a Minnesota sweep that suspended about 6,900 borrowers over roughly $400 million. California officials pushed back: Attorney General Rob Bonta called the suspensions “baseless” and noted the state recovered $2.7 billion over a decade, while Governor Newsom’s office mocked the move and highlighted nearly 1,000 arrests and $125 billion in fraud stopped under his tenure.
📌 Key Facts
- The SBA suspended 111,620 California Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) borrowers over suspected COVID-era loan fraud with a reported $8.6 billion face value.
- SBA Administrator Kelly Loeffler said the suspensions are tied to "at least $9 billion in suspected fraud," a figure slightly above the $8.6 billion face value reported.
- The SBA and Loeffler framed the California crackdown as evidence of "corruption that the Biden Administration tolerated for years."
- The action was presented as a follow-on escalation from an earlier Minnesota sweep that suspended about 6,900 borrowers over roughly $400 million.
- California Attorney General Rob Bonta accused the Trump administration of promoting "baseless claims," saying California is a fraud victim that has recovered $2.7 billion over the past decade.
- Gov. Newsom’s office mocked the SBA move on X and highlighted that under his tenure California has recorded nearly 1,000 arrests and stopped $125 billion in fraud.
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Fox carries Administrator Kelly Loeffler’s quote that the suspensions are tied to 'at least $9 billion in suspected fraud,' slightly above the $8.6 billion face value of the loans.
- The article highlights a sharp political clash with California officials: AG Rob Bonta accuses the Trump administration of promoting 'baseless claims' and insists California is a fraud victim recovering $2.7 billion over a decade, while Newsom’s office mocks the SBA move on X and stresses nearly 1,000 arrests and $125 billion in fraud stopped under his tenure.
- The SBA and Loeffler explicitly frame the California crackdown as evidence of 'corruption that the Biden Administration tolerated for years' and as a follow-on escalation from a prior Minnesota sweep that suspended 6,900 borrowers over about $400 million.