Published March 11, 2026, 12:21 p.m. EDT
SBA Administrator Bars 112,000 Borrowers From Future Aid Due to COVID-Era Loan Fraud in California Alone Small Business Administrator (SBA) Kelly Loeffler unveiled a sweeping anti-fraud campaign Wednesday, announcing an audit of a decades-old $50 billion program that she said has “never been reviewed” and barring 112,000 borrowers from future aid to combat loan fraud in the COVID era.
“There are dozens of programs in this government that need to be overhauled,” Loeffler said on “Mornings with Maria.”
“I discovered a program we had at our agency about 50 years ago, [that has] has never been looked at, $50 billion, so what we’re doing is auditing every participant in the program, and we’re looking back at COVID-era loans.
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U.S. Small Business Administration Administrator Kelly Loeffler speaks before U.S. Vice President JD Vance at Pointe Precision February 26 in Plover, Wisconsin. (Matt Rourke-Pool/Getty Images / Getty Images)
The head of the SBA said 112,000 borrowers in California are barred from receiving SBA assistance again for allegedly defrauding COVID-era loan programs and expressed gratitude to Vice President JD Vance for leading the charge in combating fraud.
President Donald Trump asked Vance to lead the administration’s “war on fraud” during his State of the Union address last month, a task the vice president enthusiastically accepted. promise to eradicate Systematically “stole” taxpayers’ money.
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Vice President JD Vance delivers remarks at Hatch Stamping September 17, 2025 in Howell, Michigan. President Trump has asked Vance to lead the administration’s “war on fraud.” (Bill Pugliano/Getty Images / Getty Images)
“The American people want accountability. They want to make sure their hard-earned tax dollars don’t go to fraudsters,” Loeffler said.
“People who came here and built businesses by defrauding the government…we’re going to see results and make sure we change this for good. These changes have to be lasting and sustainable for the American taxpayer.”
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Loeffler has already taken a break SBA Loans in Minnesota amid a massive fraud investigation in the state.
She pledged to go “state by state” to weed out offenders, telling the New York Post that this initiative is part of a larger effort to “contribute meaningfully” to Vance’s fraud task force.