Cali looking to out-fraud Minnesota.
The Small Business Administration said 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 announced the action Friday, saying the borrowers are suspected of improper activity involving federal pandemic programs, including Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
“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 told The New York Post.
“This staggering number represents the most significant crackdown 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.”
The California action came a day after state Attorney General Rob Bonta dismissed allegations of widespread fraud in the state as “baseless,” framing the claims as politically motivated while noting California’s own enforcement efforts.
The SBA’s move follows a similar enforcement push in Minnesota, where Loeffler said the agency suspended 6,900 borrowers tied to 7,900 potentially fraudulent PPP and EIDL loans worth about $400 million.
PPP and EIDL were launched during the pandemic to help small businesses weather shutdowns and revenue losses; watchdogs and investigators have long warned that rapid rollout and early “self-certification” rules created openings for fraud, with the SBA’s inspector general previously estimating tens of billions in potentially fraudulent pandemic lending.
More over at The New York Post:
Exclusive | Shocking $8.6 billion new fraud uncovered in California https://t.co/UHp8b08Zsk pic.twitter.com/VjThm6bmn0
— New York Post (@nypost) February 6, 2026
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