California

Small Business Administration Suspends 111,620 California Borrowers Suspected of $8.6 Billion Fraud

The agency will pursue criminal referrals regarding the $8.6 billion fraud with the Department of Justice.
Small Business Administration Suspends 111,620 California Borrowers Suspected of $8.6 Billion Fraud
Administrator of the Small Business Administration Kelly Loeffler speaks during an interview with EpochTV’s “American Thought Leaders” at her office in Washington on Jan. 7, 2026. Madalina Kilroy/The Epoch Times
Naveen Athrappully
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The Small Business Administration (SBA) has suspended 111,620 California borrowers suspected of committing fraudulent activity related to COVID-19 pandemic-era loan grants, the agency said in a Feb. 6 statement.

The fraud involves the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. PPP, established under the Coronavirus Aid, Relief, and Economic Security Act, provided funds to small businesses to cover up to eight weeks of employee payroll expenses, including benefits.

Naveen Athrappully
Naveen Athrappully
Reporter
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.