New Fraud Uncovered in California: $8.6 billion COVID-era Relief
SBA suspends more than 111,000 borrowers in the state
Friday morning, the Small Business Administration upstaged AG Bonta and announced it has uncovered $8.6 billion in suspected fraud tied to COVID-era relief lending in California and has suspended more than 111,000 borrowers in the state.
SBA Administrator Kelly Loeffler said the borrowers are suspected of improper activity involving federal pandemic programs, including Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
โThey are accused of collecting money under the paycheck protection and economic injury disaster loans from the federal government that were supposed to ease the economic burden from covid,โ the NY Post reported.
โOnce 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,โ Loeffler told The Post.
โThis 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.โ
https://californiaglobe.com/fl/new-fraud-uncovered-in-california-8-6-billion-covid-era-relief/
Katy Grimes, February 6, 2026