Vice President JD Vance has revealed that around 870,000 individuals suspected of committing fraud during the COVID era will be permanently prevented from obtaining federal loans in the future.
The Small Business Administration (SBA) will suspend these American borrowers, who are believed to have played a role in about $39 billion of fraudulent activity related to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). This is the largest suspension action taken by the agency so far, impacting 45 states, six territories, and the District of Columbia.
“If you took advantage of the American taxpayer, the federal government is now going to say you’re cut off, no more,” Vance stated on Monday. “You shouldn’t be applying anymore, and if you do, you’re no longer eligible for those benefits.”
.@VP announces the permanent suspension of some 870,000 individuals tied to millions of dollars in fraud from ever being able to obtain federal loans.
“If you screwed the American taxpayer, the federal government is now going to say you’re cut off. No more.” pic.twitter.com/1KnXOnIy5r
— Rapid Response 47 (@RapidResponse47) September 14, 2026
Vance went on to accuse the previous Biden administration of being aware of the COVID-related fraud, labeling it an “open secret.”
“Did the Biden Administration know this was happening? Of course they did,” Vance remarked. “It was an open secret… We were aware that the PPP program had significant fraud issues. I’m not just referring to a few isolated instances.”
“We need to investigate the officials who were ignoring these problems.”
The SBA and its Office of the Inspector General are also initiating Operation No Doze, which will send final 30-day demand letters to those suspected of fraud. These letters will inform the individuals of their alleged actions and require them to repay their debts within the specified timeframe.
Before this latest initiative, another 560,000 suspected fraudsters from the pandemic era had already been referred to the Treasury in connection with $22 billion in loans.
