SBA Sends 562,000 Suspected Fraudulent Loans to Treasury for Collections Totaling $22 Billion

White House Task Force to end Biden Administration amnesty for fraudulent pandemic-era loans, pursue historic collection

(DO THE MATH:  562K/338M US population = 1/600 fraudsters.  1.4M Hawaii population / 600 = 2,300 potential fraudulent loans in Hawaii.)

News Release from SBA, April 24, 2026

WASHINGTON — Today, in coordination with the White House Task Force to Eliminate Fraud, the U.S. Small Business Administration (SBA) announced that it has referred  562,000 suspected fraudulent loans to the U.S. Department of Treasury (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 (PPP) and COVID Economic Injury Disaster (EIDL) 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 (DOJ) 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 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. Thanks to the White House Task Force to Eliminate Fraud, the SBA and Treasury are now launching an aggressive effort to claw back the outstanding debt.

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.

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