January 1, SBA Cracks Down on Billions in California Fraud

Wyatt’s Take

• The Trump SBA suspends over 111,000 California borrowers for pandemic loan fraud.
• More than $8.6 billion in PPP and EIDL loans under suspicion.
• Officials say California’s welfare policies encourage abuse at taxpayer expense.

The Small Business Administration just suspended 111,620 California borrowers, accusing them of abusing pandemic-era loan programs. The loans under review top $8.6 billion, impacting both PPP and EIDL pandemic relief.

Administrator Kelly Loeffler declared the agency is “taking decisive action” to clean up what she describes as a culture of fraud driven by weak welfare oversight.

“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,” Loeffler stated.

She added, “Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud.”

Loeffler called this move the biggest yet to target pandemic program cheaters and said it reveals the depth of corruption that got overlooked by the Biden administration.

“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 blamed California’s welfare approach for making it easy for criminals. She said fraud “scaled up massively during the pandemic – and the Biden Admin failed to stop it.”

She recalled visiting a San Diego address connected to 14 fake businesses that took over $2 million in loans, noting those debts aren’t settled.

Loeffler claims that only under the current SBA is real action being taken to make fraudsters pay.

The SBA took similar action recently in Minnesota to tackle loan fraud. Major COVID relief programs have become targets for scam artists since the pandemic.

If you want real accountability for your tax dollars, it’s time to pay attention to which leaders are willing to make hard choices. Share your thoughts and keep up the fight for honest government.

Wyatt Matters

When programs meant to help hardworking Americans get hijacked, it’s families in the heartland who feel the pain. Standing up to fraud is about protecting jobs, businesses, and every dollar folks work so hard to earn.

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