The Small Business Administration (SBA) announced on Friday that more than 100,000 california borrowers Suspected fraud and alleged abuse totaling nearly $9 billion.

SBA Administrator Kelly Loeffler said the agency has suspended the eligibility of 111,620 California borrowers suspected of engaging in fraudulent activity in the SBA’s pandemic loan program. These borrowers received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans, totaling more than $8.6 billion.

“The Trump SBA is once again taking decisive action to pursue accountability in a state where irresponsible welfare policies have created a culture of fraud and abuse that harms law-abiding taxpayers and small business owners,” Loeffler said in a statement.

House Republicans call Minnesota fraud probe ‘tip of the iceberg’ as more blue states face scrutiny

The Small Business Administration (SBA) has suspended the loans of more than 100,000 California borrowers amid alleged nearly $9 billion in loan fraud during the pandemic, SBA Administrator Kelly Loeffler announced Friday. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

“Today, we are announcing that we have suspended nearly 112,000 borrowers suspected of defrauding at least $9 billion,” she said. “This staggering number represents the toughest crackdown on those who defrauded pandemic programs, and it illustrates the scale of corruption that the Biden administration has tolerated for years.”

Loeffler referenced the Trump administration’s fraud crackdown in another blue state, saying, “As we do in minnesotaWe are actively working with federal law enforcement to identify criminals who defraud American taxpayers, hold them accountable, and recover stolen funds. “

She added, “As we continue to work state by state, our message is clear: Pandemic-era fraudsters will not get a pass. this government“.

Republican senators form task force to crack down on fraud tied to Minnesota scandal

U.S. Small Business Administration (SBA) Administrator Kelly Loeffler during a press conference at the U.S. Capitol in Washington, DC, United States, Monday, October 27, 2025. (Kent Nishimura/Bloomberg via Getty Images)

The announcement comes after the SBA said last month it suspended eligibility for 6,900 Minnesota borrowers after discovering what it said were problems. Suspicions of fraud are widespread.

The agency previously reviewed thousands of PPP and EIDL loans approved In Minnesota, nearly $400 million in potentially fraudulent loans linked to borrowers was discovered.

Loeffler said the suspicious activity included 7,900 PPP and EIDL loans approved during the COVID-19 pandemic.

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SBA Administrator Kelly Loeffler said the agency has suspended the eligibility of more than 100,000 California borrowers suspected of fraud in the pandemic loan program. (AP Photo/Rod Rumkey Jr.)

The SBA previously said that at least $2.5 million in PPP and EIDL funds issued during the pandemic were related to Fraud schemes linked to Somalia Headquartered in Minneapolis.