On September 14, 2026 the US Small Business Administration announced that it had suspended 870,000 borrowers connected to an estimated $39 billion in suspected fraudulent Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) activity. The SBA called it its largest suspension announcement to date. It follows earlier suspensions of more than 150,000 borrowers in five states.
According to the SBA, suspended borrowers cannot receive future SBA small-business or disaster loans and are not eligible for other SBA programs, including federal contracting through the 8(a) program. The agency also said demand letters are going out asking for repayment, with Treasury collection as the next step.
Source: U.S. Small Business Administration, news release, September 14, 2026. Summary written by us; the official source governs. General information, not financial, legal or tax advice.