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California: SBA Suspends 12,000 Borrowers Suspected of $9 Billion of Fraud, by Craig Bannister – Brown Pelican Society of Lousiana

California: SBA Suspends 12,000 Borrowers Suspected of $9 Billion of Fraud, by Craig Bannister

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Image by Grok: A picture with lots of money saying "SBA Suspends 12,000 Borrowers Suspected of $9 Billion of Fraud"

By Craig Bannister, Newsbusters, February 6th, 2026

111,620 California borrowers suspected of committing $8.6 billion of pandemic-era fraud have been suspended by the U.S. Small Business Administration, SBA Administrator Kelly Loeffler announced Friday.

“I’m here in San Diego, standing at an address that is registered to 14 businesses that took $2 million in pandemic-era loans Those loans haven’t been paid back,” Administrator Loeffler says in a social media video reporting the suspensions.

“But, that’s just the tip of the iceberg,” Loeffler adds:

“Today, the SBA is announcing we’re suspending 112,000 California borrowers who took potentially upwards of $9 billion. …

“We’re going to continue to work with our federal partners to ensure accountability for COVID-era fraud that the Biden Administration tried to sweep under the rug.” ….

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