The U.S. Small Business Administration (SBA), in coordination with the White House Task Force to Eliminate Fraud, recently referred 562,000 suspected fraudulent loans to the U.S. Department of Treasury for collection and to the U.S. Department of Justice (DOJ) for investigation
The borrowers are tied to $22.2 billion in delinquent Paycheck Protection Program and COVID Economic Injury Disaster loans that were previously flagged for suspected fraud but never sent to Treasury for collection or referred to the DOJ.
“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,” SBA Administrator Kelly Loeffler said.
“After extensive review, and with the strong support of the White House Task Force to Eliminate Fraud, we are taking our most decisive action yet to end a Biden-era scheme that protected over 560,000 borrowers tied to more than $22 billion in suspected pandemic-era fraud. For years, the Biden Administration shielded these borrowers from debt collectors as part of a de facto amnesty scheme – but today, they will finally face accountability. The SBA is deeply grateful to the U.S. Department of the Treasury for its partnership in this historic action, and we look forward to continued collaboration as we work to claw back stolen taxpayer dollars and hold fraudsters accountable.”