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Re: Trump Administration Launches $22 Billion Clawback of COVID-19 Loan Fraud for 562, 000 Loans

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The U.S. Small Business Administration has referred 562,000 suspected
fraudulent loans to the U.S. Department of the Treasury for collection,
marking the SBA’s largest referral package on record. 

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 during the Biden Administration
but never sent to Treasury for collection nor referred to the U.S.
Department of Justice for investigation. 

The SBA has transmitted the borrowers to the DOJ. And with today’s
referral, Treasury will begin collecting on the outstanding debt as part
of the Trump Administration’s commitment to recouping stolen
pandemic-era funds on behalf of American taxpayers and small business
owners. 

“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. 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,” said SBA Administrator Kelly Loeffler. “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.”  

By law, SBA must refer delinquent debts to the Treasury’s Bureau of the
Fiscal Service once they become sufficiently past due. Likewise, when
SBA’s internal fraud controls flag loans for potential fraud, the agency
is expected to refer those cases to the appropriate investigative and
law enforcement authorities. 

But the Biden Administration deliberately protected more than 560,000
borrowers tied to $22.2 billion in potential pandemic-era fraud. During
the last Administration, the SBA refused to send the loans to Treasury
for collection and failed to refer them to the DOJ. In doing so, the
Biden Administration deliberately shielded borrowers in an act of de
facto amnesty and loan forgiveness. 

Until today, none of the 560,000 borrowers had been compelled to repay
the $22.2 billion they owed American taxpayers. Fewer than 1,000 of
these borrowers had been subject to investigations by the SBA Office of
Inspector General. 

The debt referral is the latest victory for the White House Task Force
to Eliminate Fraud. Led by Vice President JD Vance and Federal Trade
Commission Chairman Andrew Ferguson, the Task Force seeks to “coordinate
and accelerate a comprehensive national strategy to stop fraud, waste,
and abuse within federal benefits programs,” especially through enhanced
collaboration across member agencies. 

As part of its work on the Task Force, the SBA is focused on addressing
and recouping pandemic-era fraud that the Biden Administration forgave,
ignored, or shielded from collections. As Vice President Vance outlined
in his Day One memo to the Task Force, “research findings show over
1,000,000 suspicious Paycheck Protection Program (PPP) loans.” Indeed,
the SBA approved approximately $1.2 trillion in PPP and COVID-EIDL loans
from 2020-2021, of which at least $200 billion is estimated to be
fraudulent, according to the SBA Office of the Inspector General. 

Since taking office last year, SBA Administrator Kelly Loeffler has
moved aggressively to crack down on pandemic-era fraud. In addition to
installing common-sense guardrails to keep fraudsters out of all SBA
loan programs, including new citizenship and birth date verification
checks, the agency has launched a state-by-state investigation to
identify fraudsters and recoup stolen tax dollars. Earlier this year,
SBA suspended 111,620 California borrowers tied to suspected PPP and
EIDL fraud totaling over $8.6 billion, as well as an additional 6,900
Minnesota borrowers associated with roughly $430 million in potentially
fraudulent loans. 

https://townhall.com/tipsheet/scott-mcclallen/2026/04/24/trump-administra
tion-launches-22-billion-clawback-of-covid-loan-fraud-for-562000-borrower
s-n2675044 

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Re: Trump Administration Launches $22 Billion Clawback of COVID-19 Loan Fraud for 562, 000 Loans Greg Rabanus <greg.rabanus@bsky.app> - 2026-04-25 08:42 +0200

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