Washington, September 15, 2026 (Yes Punjab News)
The US Small Business Administration (SBA) has suspended nearly 870,000 borrowers over suspected fraud involving pandemic-era loan programmes, with officials estimating that the accounts were linked to about $39 billion in taxpayer funds.
US Vice President JD Vance announced the figures while speaking at a fraud task force event in Missouri and urged congressional Democrats to support the administration’s efforts to investigate and prevent fraud.
SBA Administrator Kelly Loeffler said the suspensions covered borrowers across 45 states and territories and involved the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan programme.
The figures relate to suspected fraudulent activity and do not establish how many borrowers have been convicted or how much money has ultimately been recovered. Vance did not provide those figures when asked, instead pointing to a process through which borrowers can challenge their designation.
“We certainly appreciate that some people, you know, mistakes sometimes happen,” Vance said, adding that those wrongly flagged would have the opportunity to appeal.
Loeffler said the SBA would pursue borrowers who allegedly used false information to obtain pandemic assistance. “If you stole from the Paycheck Protection Program, if you created fake companies and lied about your employees, we know who you are, we will claw back the money,” she said.
Attorney General Todd Blanche said the administration was stepping up its response to alleged misuse of pandemic funds, while FBI Director Kash Patel said five people on a most-wanted fraud list had been captured in three months. He said he hoped to double that number by the end of the year.
SBA Inspector General Bill Kirk announced “Operation No Doze”, under which suspected SBA fraudsters in Kansas and Missouri would receive final 30-day demand letters.
Vance also said the task force was examining whether the Biden administration had been aware of vulnerabilities to PPP fraud. However, no findings establishing wrongdoing by former administration officials were presented.
He also said investigations were looking into suspected Medicaid fraud and called for legislation to ensure anti-fraud efforts continue beyond the Trump administration.
FOLLOW NOW
