# DOJ Expands COVID Loan Fraud Enforcement

The Department of Justice's National Fraud Enforcement Division, in collaboration with the Small Business Administration and its Office of Inspector General, has intensified enforcement efforts against COVID-era SBA loan fraud through Operation No Doze. This initiative has resulted in charges against over 160 defendants and addresses approximately $245 million in intended losses. The operation also marks expanded federal-state partnerships, including new agreements with Missouri, Nebraska, and Kansas, to enhance fraud detection and enforcement capabilities. Procurement professionals and contractors should be aware of the heightened scrutiny on pandemic relief programs and the critical importance of implementing strong fraud prevention and compliance measures.

- **Why this matters:** Increased enforcement signals greater federal and state collaboration to detect and prosecute fraud related to SBA COVID loan programs, impacting contractors and businesses involved in pandemic relief funding.
- Agencies and contractors should prioritize robust internal controls and compliance frameworks to mitigate risks of fraud allegations.
- Organizations operating in Missouri, Nebraska, Kansas, and Iowa should note the regional expansion of enforcement partnerships and potential for increased investigative activity.
- Legal and compliance teams must stay informed on enforcement trends to advise on risk management and contract eligibility related to SBA loan programs.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 14, 2026

### Government Entities
- Department of Justice (DOJ)
- Small Business Administration (SBA)
- Small Business Administration Office of Inspector General (SBA OIG)
- Missouri State Government
- Nebraska State Government

### Key Quotes
> Pandemic loan relief was meant to keep American small businesses alive during government lockdownsnot line the pockets of fraudsters.
> — Todd Blanche, Attorney General

### Sources
- [ Office of Public Affairs |  DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue Expanding | United States Department of Justice](https://www.justice.gov/opa/pr/dojs-fraud-division-sba-and-sba-oig-target-245m-covid-loan-fraud-enforcement-activity-state) - DOJ