Last Updated on February 7, 2026 by The HD Post Staff
CALIFORNIA – The U.S. Small Business Administration (SBA) announced on February 7 the suspension of 111,620 California borrowers amid suspected fraud in pandemic loan programs.
In total, these borrowers received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans totaling over $8.6 billion.
SBA Administrator Kelly Loeffler said the Trump SBA is taking decisive action to deliver accountability in a state whose welfare policies, she claims, have created a culture of fraud and abuse at the expense of law-abiding taxpayers and small business owners.
“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,” Loeffler said.
In early January 2026, the SBA suspended 6,900 borrowers associated with 7,900 potentially fraudulent PPP and EIDL loans worth approximately $400 million.
Suspended borrowers are barred from new SBA small-business and disaster loans and from participating in other programs, including federal contracting through the 8(a) Business Development Program.
SBA partnering with Palantir
According to the Trump SBA, the agency has worked since Day One to address an estimated $200 billion in pandemic-era fraud.
SBA officials recently partnered with Palantir, a data analytics firm, to expand a nationwide investigation into PPP and EIDL abuse. They continue coordinating with federal law enforcement to pursue recoveries, civil penalties, and criminal prosecutions where appropriate.
SBA staff will also continue working with the Office of Inspector General to pursue potential fraud in California and nationwide.
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