On September 23, 2026 the SBA and the Internal Revenue Service announced a joint step on suspected pandemic relief fraud. Earlier this year the SBA referred more than $200 billion in suspected PPP and COVID EIDL fraud to the IRS.
The IRS compared the tax information borrowers gave the SBA when they applied with what was reported to the IRS. That comparison found discrepancies tied to about $100 billion in loans, and the IRS has opened examinations to decide whether additional taxes and penalties, including fraud penalties, apply.
What it means for you: Lenders ask for tax returns and bank statements, and the numbers need to match what you filed. If your pandemic-loan application and your returns disagree, talk to your accountant before you apply for new financing.
Source: U.S. Small Business Administration, news release, September 23, 2026. Summary written by us; the official source governs. General information, not financial, legal or tax advice.