Trump admin uncovers 'staggering' $8.6B in suspected Calif. small business fraud linked to COVID

https://nypost.com/2026/02/07/us-news/8-6-billion-in-suspected-california-
small-business-fraud-uncovered/

The federal Small Business Administration suspended more than 111,000 
California borrowers after uncovering $8.6 billion in suspected fraudulent 
activity linked to the COVID pandemic, SBA Administrator Kelly Loeffler 
announced Friday. 

“We have suspended nearly 112,000 borrowers tied to at least $9 billion in 
suspected fraud,” Loeffler said in a press release on Friday. “This 
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.”

The SBA reported that all in, it suspended 111,620 California borrowers 
who received 118,489 Paycheck Protection Program (PPP) and Economic Injury 
Disaster Loans (EIDL) loans, totaling $8.6 billion. 

PPP loans were COVID-era federal relief programs that gave small 
businesses money to keep workers on the payroll, while EIDL loans are part 
of an SBA program that provides low-interest disaster relief loans to help 
businesses survive during times of disaster, including the pandemic. 

“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,” Loffler continued. 

The announcement follows California Attorney General Rob Bonta saying on 
Thursday that the Trump administration was promoting “baseless claims” of 
persistent fraud in the state. 

“Trump claims California is wasting money when, in reality, our programs 
are helping lower-income individuals and lower-income families get 
healthcare, food and housing assistance,” Bonta said on Thursday. 

“Trump claims, wrongly, California is perpetuating fraud when we are the 
victim,” he added. 

Bonta’s office noted that California recovered nearly $2.7 billion in 
various fraud schemes across the last 10 years, “including by partnering 
with the federal government.” 

Fox News Digital reached out to Bonta’s office on Friday for additional 
comment. 

Newsom’s office directed Fox News Digital to the Governor Newsom Press 
Office X account, which mocked the SBA announcement. 

“OMG. The Trump Administration found MAJOR FRAUD in programs THEY control, 
Newsom’s Press Office‘s X account posted, linking to a New York Post 
exclusive on the announcement. 

“The state has no role running / administering these programs.Were they 
hiding this??? California doesn’t hide fraud … we fight it. Nearly 1,000 
arrests + over $125 billion STOPPED under @CAGovernor Gavin Newsom.”

Loeffler continued that the alleged California fraud comes after the SBA 
suspended 6,900 borrowers in Minnesota associated with 7,900 potentially 
fraudulent PPP and EIDL loans, which totaled roughly $400 million. 

“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,” Loeffler said, comparing 
California to its investigations in Minnesota. 

Minnesota became ground zero for welfare and social services fraud 
surrounding the pandemic late in 2025, when investigators uncovered 
sweeping fraud schemes that could top $9 billion. 


-- 
November 5, 2024 - Congratulations President Donald Trump.  We look 
forward to America being great again.

We live in a time where intelligent people are being silenced so that 
stupid people won't be offended.

Every day is an IQ test. Some pass, some, not so much.

Thank you for cleaning up the disasters of the 2008-2017, 2020-2024 Obama 
/ Biden / Harris fiascos, President Trump.

Under Barack Obama's leadership, the United States of America became the 
The World According To Garp.  Obama sold out heterosexuals for Hollywood 
queer liberal democrat donors.