U.S. Small Business Administration Administrator Kelly Loeffler announced Friday that the agency has suspended 111,620 California borrowers amid suspected fraudulent activity across SBA pandemic-era loan programs. In total, these borrowers received 118,489 Paycheck Protection Program and Economic Injury Disaster Loans totaling over $8.6 billion.
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,” said SBA Administrator Kelly Loeffler. “Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud. This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years. 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.
These actions follow SBA’s recent suspension of 6,900 Minnesota borrowers (see SBA Strikes Back: Now Suspending 6,900 Fraud Suspects in Minnesota – RedState) associated with 7,900 potentially fraudulent PPP and EIDL loans worth approximately $400 million.
While this suspension shuts off the tap, we shouldn't deceive ourselves into thinking that this money will be recouped or even that the businesses are anything more than addresses of convenience. The California Post discovered one address in San Diego where 14 businesses were registered in 2020 that got over $2M in PPP and EIDL loans.
One thing we're seeing is that in predominantly Democrat jurisdictions, defrauding federal programs has the status of a lifestyle. The people who participate are disproportionately illegals, and the money they scam out of the federal government finds its way into bank accounts, terrorist groups, and as kickbacks to the local Democrat political power structure; see Does the Mounting Minnesota Fraud Scandal Explain the Curious Prominence of Some Minnesota Politicians? – RedState.
Though much of the coverage of fraud has focused on the Somali community in Minnesota (Nick Shirley Strikes Again, Drops Second Bombshell Video Exposing Rampant MN Fraud – RedState), California doesn't look to be a slouch when it comes to sucking the federal teat bone dry. When Dr. Mehmet Oz, director of the Centers for Medicare and Medicaid Services, visited Los Angeles, he found 42 fraudulent hospices in a four-block radius that were responsible for at least $3.5 billion in fraud. Oz had the temerity to point out that, similar to Minneapolis, the fraud was being run by Russian and Armenian mobsters. This led California Democrat Governor Gavin Newsom to file a civil rights complaint against Oz accusing him of discrimination.
In a roundabout way, we owe Minnesota's Democrat Governor, failed vice presidential candidate, and high school football coach (ewwww!) a debt of thanks because had he held fraud to reasonable levels in Minnesota
RedState is your leading source for news and views on administration, politics, culture, and conservatism. If you appreciate our reporting and commentary, please consider becoming a member and supporting our efforts. Use promo code FIGHT to get 60% off your membership.
Join the conversation as a VIP Member