On February 6, the Small Business Administration (SBA) announced the suspension of 111,620 California borrowers after identifying suspected fraudulent activity involving pandemic-era loan programs. The agency determined that these borrowers received 118,489 PPP Loans and Economic Injury Disaster Loans totaling more than $8.6 billion. The SBA prohibited suspended borrowers from accessing new small business and disaster loans or from participating in other programs, including federal contracting in the 8(a) Business Development Program. The agency stated that it is continuing its investigation nationwide, partnering with a software and data analytics company and coordinating with law enforcement to pursue civil penalties and criminal sentences where appropriate.