Small Business Administration

Lawrence Mayor Brian DePena was charged with wire fraud and money laundering for allegedly obtaining a $1.5 million COVID-19 small-business loan intended for his tire sales business. Prosecutors accuse DePena of using the funds instead to pay off high-interest mortgages, personal taxes, and to fund his mayoral campaign ahead of the 2021 election. The charges stem from accusations that he misappropriated government funds meant to support businesses during the pandemic.

A proposed USDA reorganization plan, the Agency Reduction in Force and Reorganization Plan (ARRP), could sharply reduce or eliminate numerous USDA rural housing programs. The planned changes would consolidate subagencies into one agency, eliminating State Offices, and transforming the Section 502 program from a direct origination loan to a guaranteed loan. These potential shifts also include exploring transferring Rural Development loan programs to the Small Business Administration or Department of Housing and Urban Development.

The federal government approved $3.4 billion in disaster loans for survivors of the January 2025 Eaton and Palisades wildfires, but only $1 billion has been disbursed. June 30, 2026, is the final deadline for survivors in Los Angeles County to accept funds through the SBA’s routine process, after which remaining assistance will require case-by-case approval.

Black-owned businesses in Ohio increased payroll by 82% between 2017 and 2023, employing over 64,000 workers. While Cincinnati and Toledo saw significant growth in Black-owned businesses, Dayton and Youngstown experienced declines. The Health Policy Institute of Ohio and Brookings Institution highlighted structural barriers and policy challenges affecting Black business growth.

Small-business loans for legal permanent residents in the U.S. through the Small Business Administration are no longer available, linked to Trump's immigration crackdown. The policy change disrupts a long-standing pillar of small-business lending for immigrants.

Senators James Lankford and Maggie Hassan propose the 'Prevent Government Shutdowns Act of 2026' to eliminate shutdowns by automatically enacting a Continuing Resolution if Congress fails to pass funding bills. The act would require Congress to remain in session until budget negotiations conclude, ensuring federal workers and programs remain funded.

A former NYPD detective from Valley Stream was sentenced to 48 months in federal prison for wire fraud conspiracy related to a Paycheck Protection Program fraud scheme. The individual, along with two co-defendants, submitted false loan applications to defraud the Small Business Administration, resulting in restitution and forfeiture orders.

Treasury Secretary Scott Bessent, Small Business Administration Administrator Kelly Loeffler, and White House Press Secretary Karoline Leavitt addressed reporters at a press briefing about inflation, Iran, and other issues. CBS News political reporter Zak Hudak provided analysis following the event.

JD Vance's anti-fraud task force identified nearly $6.3 billion in potential fraudulent government contracts, targeting 400 businesses with letters to verify legitimacy. This effort aligns with the Trump administration's focus on reducing wasteful spending and combating fraud.

Emanuel Tucker from California pleaded guilty to his involvement in a COVID-19 fraud scheme that defrauded the Small Business Administration of $15.9 million in loans. The case involves misuse of pandemic relief funds intended to support struggling businesses.