Vice President JD Vance announced that roughly 870,000 suspected COVID-era fraudsters will be barred from receiving federal loans in the future. He delivered the message Monday, warning, “If you screwed the American taxpayer, the federal government is now going to say you’re cut off, no more.”
According to the Small Business Administration (SBA), the suspensions target American borrowers believed to be linked to about $39 billion in suspected pandemic-era fraud through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The agency described it as its largest suspension to date, covering 45 states, six territories, and the District of Columbia.
SBA’s largest suspension, agency says
The SBA said approximately 870,000 borrowers would be suspended from future loans tied to the suspected PPP/EIDL abuse. A clip of Vance’s remarks was shared by the account Rapid Response 47 on September 14, 2026, summarizing the move as a “permanent suspension” of individuals tied to fraud. Vance added, “You shouldn’t be applying anymore, and if you do apply, you’re no longer able to get those benefits.”
“Open secret” allegation
Vance also accused the Biden administration of knowingly facilitating pandemic-era fraud. “Did the Biden Administration know this stuff was going on? Of course they did,” he said. “It was an open secret… We knew that the PPP program was rife with fraud. I’m not talking about a few dozen cases.” He added, “We need to be looking into the officials who were turning a blind eye to this stuff.”
Operation No Doze: 30-day demand letters
The SBA and its Office of Inspector General are launching “Operation No Doze,” which will send final 30-day demand letters to suspected fraudsters, notifying them and requiring repayment within that timeframe, according to the agency.
Earlier referrals to Treasury
Prior to the latest announcement, another 560,000 suspected pandemic-era fraudsters were referred to the Treasury for collection in relation to $22 billion in loans, per the source material.
