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SBA freezes over 100,000 California borrowers in sweeping $9B pandemic fraud crackdown

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SBA freezes over 100,000 California borrowers in sweeping B pandemic fraud crackdown


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The Small Business Administration (SBA) announced Friday it had suspended more than 100,000 California borrowers amid suspected fraud, with the alleged abuse totaling nearly $9 billion.

SBA Administrator Kelly Loeffler said the agency suspended 111,620 California borrowers linked to suspected fraudulent activity across SBA pandemic-era loan programs. Those borrowers received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans totaling more than $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,” Loeffler said in a statement.

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HOUSE REPUBLICANS CALL MINNESOTA FRAUD PROBE ‘TIP OF THE ICEBERG’ AS MORE BLUE STATES FACE SCRUTINY

The Small Business Administration suspended more than 100,000 California borrowers in response to nearly $9 billion in suspected pandemic-era loan fraud, SBA Administrator Kelly Loeffler announced Friday.  (Bill Clark/CQ-Roll Call, Inc via Getty Images)

“Today, we announced we have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,” she said. “This staggering number represents the most significant crackdown on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden administration tolerated for years.”

Loeffler referenced the Trump administration’s fraud crackdown in another blue state, saying, “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.”

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GOP SENATORS LAUNCH TASK FORCE TO CRACK DOWN ON FRAUD TIED TO MINNESOTA SCANDAL

Kelly Loeffler, administrator of the Small Business Administration, during a news conference at the Capitol in Washington, D.C., Oct. 27, 2025.  (Kent Nishimura/Bloomberg via Getty Images)

The announcement comes after the SBA said last month it had suspended 6,900 Minnesota borrowers after uncovering what it said was widespread suspected fraud.

The agency previously reviewed thousands of PPP and EIDL loans approved in Minnesota, identifying nearly $400 million in potentially fraudulent loans tied to borrowers.

That suspected activity included 7,900 PPP and EIDL loans approved during the COVID-19 pandemic, according to Loeffler.

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SBA Administrator Kelly Loeffler said the agency suspended more than 100,000 California borrowers linked to suspected fraud across pandemic loan programs. (AP Photo/Rod Lamkey, Jr.)

The SBA previously said at least $2.5 million in PPP and EIDL funds issued during the pandemic era were connected to a Somali-linked fraud scheme based in Minneapolis.



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Is California’s ‘Big One’ coming soon? Maps show growing danger.

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Is California’s ‘Big One’ coming soon? Maps show growing danger.


The most significant seismic event in California’s history – an earthquake of 7.9 magnitude – occurred in 1857 and ruptured about 225 miles on the San Andreas Fault. That earthquake, dubbed the last “Big One,” killed two people and produced shaking that lasted between one and three minutes.

Since then, California has exploded in population and been has been rattled by many major earthquakes. But Californians have also grown familiar with the existential dread of another “Big One” looming.

Researchers have long warned there will be another massive earthquake in Southern California. They just don’t know when.

A recent study says warning signs continue to grow in 2026. The San Andreas and San Jacinto fault systems have reached the highest stress levels seen in the past 1,000 years, according to a study conducted at the University of Hawaiʻi at Mānoa.

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The San Andreas fault runs throughout the state, passing through San Francisco and San Bernardino, while the San Jacinto fault is in Southern California and runs through Riverside, San Diego and Imperial Counties.

Unable to view our graphics? Click here to see them.

Why the San Andreas Fault is so risky

Faults rupture on the San Andreas Fault approximately every 150 years, according to UCLA professor Jonathan Stewart, who studies earthquake engineering.

But it’s been over 300 years since the last “large rupture” occurred south of the 1857 Fort Tejon earthquake, Stewart said. “As far we know it didn’t produce a large rupture since around 1690. To the present that’s a lot more than 150 years, so there’s a lot of build-up. That doesn’t mean it’s going to happen immediately, it just means there is more stress built-up.”

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When the earthquake happens, it is likely to cause a lot of damage. One major concern is the state’s water systems.

“An earthquake like this would rupture most, if not all of the major aqueducts bringing water into Southern California,” Stewart said. “Most people will not be in a collapsed structure after this earthquake, but everybody’s going to be affected by water problems.”

Study highlights longstanding risk

To investigate the probability of an earthquake occurring, researchers built a physics-based simulation and fed it the earthquake history from the region. By doing so, they were able to estimate how much stress has built up along the southern San Andreas and San Jacinto fault systems.

The results suggest that catastrophe may be near.

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“Right now, with stress at historically high levels across the region and more than 160 years elapsed since the last major rupture, the system is in a critically loaded state,” lead author Liliane Burkhard said.

Most importantly, the Cajon Pass, at the junction of the San Andreas and San Jacinto faults, could facilitate a joint rupture of the two faults. This scenario, according to the study, would probably be “significantly more damaging” than a single-fault event.

How is earthquake safety considered?

Seismic hazard assessments are critical for the safety of the millions of residents in California’s densely-populated and earthquake-prone areas.

Seismic Hazard maps show the relative hazard associated with earthquakes using information on past faults, the behavior of seismic waves and the near-surface conditions of specific locations, according to the U.S. Geological Survey.

Larger values indicate a stronger level of earthquake shaking. A peak ground velocity of 269 cm/sec would correspond to extreme shaking and heavy damage. For reference, the largest ground velocity recorded in Taiwan’s 1999 Chi-Chi earthquake reached 318 cm/sec and had a magnitude of 6.7.

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That earthquake killed more than 2,000 people and incurred approximately $14 billion in damage.

How do the fault lines rupture?

The San Andreas and San Jacinto faults are strike-slip faults, which typically cause horizontal displacement. Both faults comprise the geologic boundary between the Pacific Plate and the North American Plate.

If a major earthquake occurs on the San Andreas fault, it is likely to produce surface rupture, which occurs when a fault breaks through to the surface. Most earthquakes, however, do not produce surface rupture, according to USGS.

In a major rupture, strong shaking could cause severe damage near the fault and in areas built on soft or water-saturated soils, which can amplify shaking. Rupture can directly offset roads, buildings, and other structures that span the fault trace.

Although the study helps explain the risk associated with the California fault lines, Burkhard emphasized that it shouldn’t serve as a forecast.

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“This is not a prediction of when an earthquake will happen,” Burkhard said. “However, studies like this are important contributions to national and global earthquake hazard research in that we are using rigorous, quantitative science to better understand the risk facing millions of people.”

Contributing: Brandi D. Addison, USA TODAY NETWORK



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California lawmakers seek $32M to combat invasive pest found on grapevines sold at Costco

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California lawmakers seek M to combat invasive pest found on grapevines sold at Costco


California lawmakers are now asking the federal government for more than $32 million in emergency funding to stop the spread of an invasive insect that was recently discovered on grapevines sold at Costco stores across the state.

The request comes about a month after Fresno County agricultural officials discovered grapevine plants infested with the glassy-winged sharpshooter, a pest capable of spreading Pierce’s Disease, a deadly infection that can kill grapevines.

In a letter sent to U.S. Agriculture Secretary Brooke Rollins, Sens. Adam Schiff and Alex Padilla joined Reps. Mike Thompson, David Valadao and other members of California’s congressional delegation in requesting $32.2 million in emergency funding to contain and eradicate the pest.

[RELATED] Fresno County grapevine plants shipped to Costco were infested with bugs

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Lawmakers say the infected nursery stock was identified Mat 19 by the California Department of Food and Agriculture and the Fresno County Agricultural Commissioner’s Office.

The plants had been distributed to Costco stores in more than two dozen California counties before being sold to customers.

Officials believe some of the infested plants have since been transported to homes in at least 38 counties across the state.

The movement of infested nursery stock into and near key grape-producing regions, including areas critical to California’s winegrape and fresh table grape production, significantly elevates the urgency of this response.

The glassy-winged sharpshooter feeds on grapevines and spreads Pierce’s Disease, an incurable bacterial infection that can destroy vineyards by preventing vines from transporting water.

Lawmakers warned that the pest poses a serious threat to California’s wine and table grape industries.

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According to the Wine Institute, California’s wine industry supports 1.1 million jobs nationwide and generates an economic impact of more than $170 billion.

California also produces 99% of the nation’s table grapes, with an annual crop value estimated at $2.59 billion.

If the pest spreads unchecked, the California Department of Food and Agriculture estimates losses associated with Pierce’s Disease and the glassy-winged sharpshooter could exceed $104 million annually.

The requested funding would support emergency response efforts, including tracing the movement of infested plants, surveying affected areas and expanding trapping programs.

Additional funding would also be used for long-term monitoring and eradication efforts over the next several years.

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The lawmakers are asking the U.S. Department of Agriculture to immediately release the funding through the Commodity Credit Corporation, arguing that the outbreak meets the federal definition of an agricultural emergency.

Growers have already contributed more than $62 million toward research and mitigation efforts over the past 25 years through industry assessments, according to the letter.

Federal officials have not yet announced whether the funding request will be approved.



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California Now Offers Free Passes to State Historic Parks (Just Don’t Miss the Deadline) | KQED

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California Now Offers Free Passes to State Historic Parks (Just Don’t Miss the Deadline) | KQED


An annual pass that’s usually $50 is free in honor of Juneteenth — and to mark the 250th anniversary of the signing of the Declaration of Independence.

Historical buildings are visible at Sonoma State Historic Park, Sonoma, California, May 31, 2026. Until July 6, Californians can download the state historic park pass for free and use it as many times as they want through the end of 2026. (Smith Collection/Gado via Getty Images)

“California doesn’t hide from hard truths and uncomfortable history – in fact, we embrace it and learn from it,” Newsom wrote.

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Until July 6, Californians can download the state historic park pass for free and use it as many times as they want through the end of 2026. The pass gives free entry to state historic parks for up to four people.

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The Historian Passport grants entry to more than 30 state historic parks, including parks like Olompali and Malakoff Diggins which, rather than just providing outdoor recreation, also have an educational emphasis on the state’s history.

Jack London State Historic Park in Napa Valley, California. (Ablokhin via Getty Images)

Many of these parks tell the story of the state’s cultural or indigenous history, from missions and museums to temples and the site that sparked the California Gold Rush.

Newsom made a similar move to make state parks free for Martin Luther King Jr. Day this year, in response to Trump’s decision to eliminate the holiday from the list of fee-free days at national parks across the country, replacing it with his birthday on Flag Day.

How to get your free Historian Passport for up to four people

You must make an account with the state’s reservation site ReserveCalifornia.com to obtain a Historian Pass. Then, visit the site’s Advance Passes page and select “Special Edition Historian Passport” from the dropdown menu, which will show as costing $0. No payment information is required.

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After checking out, you’ll receive an email with an attached PDF version of your Historian Passport.

The state recommends you print off this PDF to present at any California state historic park for free entry, although you may just be able to show the image on your phone too.

Bear in mind that cellphone service may be poor at many state historic parks, so it’s worth screenshotting the PDF to save it as an image on your phone in case you’re unable to search your email.

Looking for free entry to other state parks that aren’t included in the Historian Passport? Consider checking out a parks pass from your local library, which provides these passes as part of the California State Library Parks Pass program.

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Northern California State Historic Parks to visit for free this year with a Historian Passport

Bay Area

Sacramento area

Sierra foothills

KQED’s Carly Severn contributed to this report.





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