WASHINGTON, DC (October 30, 2023) — The U.S. Small Business Administration (SBA), alongside the White House Task Force to Eliminate Fraud, has referred 562,000 suspected fraudulent loans to the U.S. Department of Treasury for collection. The loans, totaling $22.2 billion, comprise delinquent Paycheck Protection Program (PPP) and COVID Economic Injury Disaster (EIDL) loans previously flagged for fraud during the Biden Administration.
The referral marks the SBA’s largest package of suspected fraudulent loans sent to Treasury, aiming to recoup stolen pandemic-era funds. “From Day One, the Trump SBA has worked tirelessly to crack down on billions in pandemic-era fraud that the Biden Administration forgave or ignored,” said SBA Administrator Kelly Loeffler.
The loans were never sent to Treasury for collection nor referred to the U.S. Department of Justice (DOJ) for investigation during the previous administration. The SBA has now transmitted the borrowers to the DOJ, and Treasury will begin collecting the outstanding debt.
Task Force Efforts
Led by Vice President JD Vance and Federal Trade Commission Chairman Andrew Ferguson, the White House Task Force aims to combat fraud, waste, and abuse in federal benefits programs. “Every dollar in fraudulent loans was 100 fewer cents than an eligible business could have tapped into,” said SBA Regional Administrator Matt Coleman.
SBA Administrator Kelly Loeffler has been active in combating pandemic-era fraud. Earlier this year, the SBA suspended numerous borrowers in California and Minnesota tied to suspected fraudulent loans.
This article was prepared with the assistance of AI tools under the direction and editing of Robert Cox.
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