Vice President Vance to suspend 870,000 borrowers linked to $39 billion fraud scheme
Vice President JD Vance will announce the suspension of nearly 870,000 borrowers tied to an estimated $39 billion in suspected Paycheck Protection Program and Economic Injury Disaster Loan fraud.
During a scheduled stop in Kansas City, Missouri, Vice President JD Vance is expected to reveal that the Small Business Administration has barred almost 870,000 borrowers from receiving further assistance. The suspensions target individuals connected to roughly $39 billion in alleged fraud involving the Paycheck Protection Program and Economic Injury Disaster Loan. Officials accompanying Vance include Attorney General Todd Blanche, FBI Director Kash Patel and SBA Administrator Kelly Loeffler.
Affected borrowers reside in 45 states, six U.S. territories and the District of Columbia and will be prohibited from accessing future SBA small-business and disaster loans. The SBA Inspector General will concurrently initiate “Operation No Doze,” which will send a final 30-day notice to suspected fraudulent borrowers in Kansas and Missouri. This move follows a broader, state-by-state crackdown on pandemic-era loan fraud.
Why it matters
Suspending hundreds of thousands of borrowers curtails large-scale loan fraud and protects future SBA funding.
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