Trump Admin Discovers ‘Staggering’ Billions Stolen in Suspected California Small Business Fraud
The article discusses allegations of substantial fraud in COVID-19 relief programs and the political fallout surrounding it. It claims that California could see a major crackdown, with about 110,000 borrowers suspended and up to around $9 billion in suspected fraud linked to the Paycheck Protection Program and Economic Injury Disaster Loans. A quote attributed to SBA Administrator Kelly Loeffler, cited via Fox News, frames the crackdown as the largest surge against pandemic-relief fraud and accuses the Biden administration of tolerating corruption for years. The piece explains the purposes of PPP and EIDL as relief for small businesses during the pandemic.
The narrative then shifts to Minnesota politics, recounting YouTuber Nick Shirley’s investigation into alleged daycare schemes that purportedly exploited pandemic funds, which led Gov. Tim Walz to announce he would not seek reelection and would step away from public service. It contrasts this with California Gov. Gavin Newsom, suggesting he has stronger potential for national office, with Polymarket placing him high among likely presidential contenders. The article mentions Shirley’s social-media activity and embeds a Twitter post, framing Newsom as facing scrutiny alongside Shirley and the SBA.
the piece blends reporting on alleged fraud in federal relief programs with speculative politics about California and Minnesota leadership and potential 2028 presidential prospects, wrapped in an online, ad-supported article format.
California seems poised to become the next Minnesota after the Trump administration suspects billions have been taken fraudulently there.
Over 110,000 borrowers in the state have had suspensions in federal funding after $8.6 billion is suspected to have been improperly received.
“We have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,” The federal Small Business Administration Administrator Kelly Loeffler said Friday, according to Fox News.
“This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years.”
The money received came through the Paycheck Protection Program and Economic Injury Disaster Loans.
PPP monies were a coronavirus relief effort for small business owners to keep employees on payroll.
EIDL serves a similar purpose through the SBA to help with troubles by loaning money during disasters which also relates back to the pandemic.
In other words, according to the SBA, over one hundred thousand people possibly received billions in money they did not need while millions of Americans saw their livelihoods destroyed by COVID-era restrictions including forced vaccinations and economic shutdowns.
California is not quite Minnesota, yet. Per Fox, that fraud could total around $9 billion.
Minnesota Democratic Gov. Tim Walz clearly felt the pressure mounting in his own fraud controversy.
After YouTuber Nick Shirley investigated alleged “daycare” schemes in his state that appears to involved daycares acting as fronts to steal money, Walz abruptly announced he would not seek reelection.
On Jan. 28, Walz went a step further. According to CBS News, he stated his intention to bow out of public service completely.
There’s a distinction in the leadership in Minnesota compared to California.
Walz would never come close to being a viable candidate on his own for the Democratic ticket, California Gov. Gavin Newsom is another story.
Polymarket is only one estimate of likely candidates, but the site puts Newsom in second for the presidency behind Vice President and likely Republican candidate, J.D. Vance.
Newsom has more to lose than Walz considering his aspirations.
As of last Friday, Nick Shirley is in California for his own investigation, announcing the news via social media platform X.
Hello California I’ve arrived pic.twitter.com/lqYxagMoDa
— Nick shirley (@nickshirleyy) January 31, 2026
Newsom has Shirley and the SBA at his doorstep.
In a matter of months, Walz political career came to an end after a few videos were posted online from Shirley. Are we going to see the same with Newsom, dashing his 2028 hopes?
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