SBA newsroom, SBA Suspends 7,800 Wisconsin Borrowers Connected to $375 Million in Suspected Fraudulent Pandemic-Era Loans (2026-07-08)
Summary
SBA news release 26-70, published July 8, 2026, announces the suspension of 7,800 Wisconsin borrowers tied to $375 million in suspected fraudulent PPP and COVID EIDL activity, in collaboration with the White House Task Force to Eliminate Fraud. Administrator Kelly Loeffler is quoted saying more than 150,000 borrowers across five states have been suspended, representing over $10 billion in suspected fraud. The release lists suspensions of 112,000 California borrowers ($8.6 billion), 27,000 Ohio, 6,900 Minnesota and 1,500 Maine borrowers. It states that suspended borrowers are barred from future small business and disaster loans and that SBA referred more than 560,000 suspected fraudulent borrowers tied to $22 billion to Treasury in April.
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“SBA newsroom, SBA Suspends 7,800 Wisconsin Borrowers Connected to $375 Million in Suspected Fraudulent Pandemic-Era Loans (2026-07-08).”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-newsroom-sba-suspends-7-800-wisconsin-borrowers-connected-to-375-m-9d2d23bb26/
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News release 26-70 SBA Suspends 7,800 Wisconsin Borrowers Connected to $375 Million in Suspected Fraudulent Pandemic-Era Loans Action Represents Latest Action in Agency’s State-by-State Fraud Crackdown Published on July 8, 2026 WASHINGTON — Today, in collaboration with the White House Task Force to Eliminate Fraud, the U.S. Small Business Administration (SBA) announced the suspension of 7,800 Wisconsin borrowers tied to $375 million in suspected fraudulent Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) activity. The announcement comes as part of SBA’s ongoing state-by-state investigation into the abuse of taxpayer-funded programs intended to support small businesses and their workers during the pandemic. “In coordination with the White House Task Force to Eliminate Fraud under the leadership of Vice President JD Vance, the SBA is conducting a state-by-state review to expose every fraudster who cheated small businesses and taxpayers during the pandemic,” said SBA Administrator Kelly Loeffler. “With over 150,000 borrowers suspended from SBA programs across five states to date — representing over $10 billion in suspected fraud — we are actively working with law enforcement and Treasury to deliver accountability and recoup stolen funds. We will continue to use every available tool to protect taxpayer dollars and ensure SBA programs serve the legitimate American small businesses they were created to support.” To date, SBA has identified and suspended over 150,000 borrowers connected to over $10 billion in suspected PPP and COVID EIDL fraud. Suspended borrowers are prohibited from receiving future small business and disaster loans and are not eligible for other SBA programs, such as federal contracting in the 8(a) Business Development Program. Suspensions announced to date now include: - 112,000 California borrowers tied to $8.6 billion in suspected fraud - 27,000 Ohio borrowers tied to $1.1 billion in suspected fraud - 6,900 Minnesota borrowers tied to $400 million in suspected fraud - 1,500 Maine borrowers tied to $93 million in suspected fraud - 7,800 Wisconsin borrowers tied to $375 million in suspected fraud This announcement represents the latest victory for the White House Task Force to Eliminate Fraud in its effort to root out pandemic relief fraud, recover taxpayer dollars, hold bad actors accountable, and protect taxpayer dollars for the long term. In April, SBA launched its largest fraud enforcement action to date, and the largest referral package in agency history, by referring more than 560,000 suspected fraudulent borrowers tied to $22 billion in pandemic-era loans to the U.S. Department of the Treasury for collection. Since Day One, the Trump SBA has worked to crack down on an estimated $200 billion in pandemic-era fraud left unaddressed during the Biden Administration. The agency continues to coordinate with federal law enforcement partners to pursue recoveries, civil penalties, and criminal penalties where appropriate. SBA will also continue working with its Office of Inspector General to investigate additional fraud in states across the country. # # # About the U.S. Small Business Administration The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov . Related programs: COVID EIDL, PPP Media contacts U.S. Small Business Administration Email Press_Office@sba.gov
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