Overview
- The suspensions cover 118,489 Paycheck Protection Program and Economic Injury Disaster Loan awards totaling more than $8.6 billion, with some reports rounding the figure to nearly $9 billion.
- Suspended borrowers are blocked from new SBA small business and disaster loans and are ineligible for other programs such as federal contracting under the 8(a) Business Development Program.
- SBA Administrator Kelly Loeffler said the effort involves the SBA Office of Inspector General and federal law enforcement to investigate suspected schemes and seek criminal referrals.
- Loeffler cited a San Diego address tied to 14 businesses formed during the pandemic that received more than $2 million in loans that have not been fully repaid.
- California Attorney General Rob Bonta rejected the portrayal of widespread fraud as baseless and partisan, while the SBA noted the action follows earlier suspensions in Minnesota affecting 6,900 borrowers tied to roughly $400 million.