SBA Chief: Biden Admin Tried to ‘Hide,’ ‘Forgive’ $200 Billion in Fraudulent PPP Loans
“Think about it. At the SBA, we found $200 billion in fraudulent PPP loans that the Biden administration tried to hide and forgive and sweep under the rug.”
During a Wednesday cabinet meeting, Small Business Administration Chief Kelly Loeffler accused the Biden administration of concealing a staggering amount of fraud tied to the federal government’s pandemic-era Paycheck Protection Program. She claimed that rather than aggressively working to recover the funds, officials tried “to hide and forgive and sweep under the rug” roughly $200 billion in “fraudulent PPP loans.” The explosive allegation, if substantiated, would represent one of the largest fraud scandals in government history.
Loeffler told colleagues that small business owners are “hit particularly hard by fraud because they’re some of our biggest taxpayers in the country.” She continued:
Think about it. At the SBA, we found $200 billion in fraudulent PPP loans that the Biden administration tried to hide and forgive and sweep under the rug.
We’ve turned the first $22 billion of that over to Treasury for collection and to DOJ for prosecution. Our inspector general is already announcing that people are going to jail.
…
We’ve announced that 140,000 people have been barred from ever getting SBA loans again — defrauding the government of about $9 billion. So we are going to continue our work under the great leadership of Vice President Vance and appreciate the partnership because it’s really accelerated our ability to get the job done.
She later posted a video of her remarks on X along with the following statement: “During the Biden Admin, PPP and EIDL [the COVID-19 Economic Injury Disaster Loan program] became some of THE MOST defrauded federal programs in U.S. history – robbing honest small business owners and taxpayers of vital pandemic relief, to the tune of $200 billion. … Under the leadership of @POTUS, the SBA is delivering long-awaited accountability for every criminal fraudster that the last Administration tried to forgive or sweep under the rug.”
During the Biden Admin, PPP and EIDL became some of THE MOST defrauded federal programs in U.S. history – robbing honest small business owners and taxpayers of vital pandemic relief, to the tune of $200 billion.
Under the leadership of @POTUS, the SBA is delivering long-awaited… pic.twitter.com/UZQtb8LWqi
— Kelly Loeffler (@SBA_Kelly) May 27, 2026
Many X users, weary of watching fraudsters enrich themselves at taxpayers’ expense, reacted with outrage to Loeffler’s revelations. One woman wondered aloud how much of the nation’s ballooning debt can ultimately be traced to fraud. It’s a fair question.
$200 billion?! Why aren’t more American taxpayers upset about this? A large portion of the national debt and taxpayer burden is likely attributable to fraud. Eliminating fraud has everyday and generational benefits.
— Nikita (@KitaDaBelieva) May 27, 2026
But perhaps even more striking were the users who turned their anger toward Loeffler herself. Some questioned what a billionaire like her could possibly know about the struggles of running a small business. Others accused her of “bootlicking” President Donald Trump, calling her comments disgraceful rather than addressing the allegations she raised.
Lol!!! Did you watch yourself sucking up to Trump today??? It was laughable. Do you get bonuses for that or just a promise he won’t fire you?
— Remy (@Remy54391348095) May 27, 2026
Clearly, none of us can say with certainty whether Loeffler’s figures are entirely accurate. But few would deny that a staggering number of people — citizens and noncitizens alike — have exploited government programs for personal gain. For Americans who faithfully pay their taxes year after year, watching that abuse unfold is deeply demoralizing.
Allegations of large-scale fraud tied to public benefits have exploded in the past year. Minnesota, of course, is ground zero for fraud. The most notorious case involved the “Feeding Our Future” scandal, in which a network of individuals stole roughly $250 million from a federally funded child nutrition program during the COVID-19 pandemic. According to federal authorities, organizers submitted fake meal counts, fabricated attendance rosters, and fraudulent invoices for children who never existed or were never served. More than 70 people were charged in connection with the scheme, and the organization’s founder, Aimee Bock, was recently sentenced to more than 41 years in prison.
But that scandal is likely just the tip of the iceberg in Minnesota. As investigators dig deeper into the state’s public assistance programs, estimates of suspected fraud have climbed into the billions — with some putting the figure at $9 billion or more.
California has come under intense scrutiny over alleged abuse within its sprawling Medicaid system, Medi-Cal. Investigators and watchdogs have raised alarms about fraudulent billing schemes, ineligible recipients, and organized exploitation of taxpayer-funded healthcare benefits, with critics warning that weak oversight and rapid program expansion created fertile ground for abuse. Some believe the scale of fraud in the Golden State will ultimately surpass even the staggering figures now being discussed in Minnesota.
State officials have also acknowledged that tens of billions of dollars may have been lost to fraudulent unemployment claims during the pandemic. State audits and investigations later concluded that weak identity verification systems and delayed fraud controls contributed to massive losses.
In Ohio, federal prosecutors have brought multiple cases involving fraudulent COVID relief applications, including PPP loans and unemployment claims. One notable case alleged that individuals fraudulently obtained millions of dollars in pandemic aid using fictitious businesses and false documentation. Authorities say some defendants created shell companies and opened bank accounts solely to receive relief funds intended for struggling businesses.
Concerns about fraud have also extended to the federal SNAP program, commonly known as food stamps. This program has been widely abused and investigations have already led to arrests.
The Biden administration appeared content to let the fleecing of government programs continue unchecked. In many cases, the beneficiaries of these ill-gotten gains later funneled money into the campaigns of Democratic candidates and progressive causes.
Whether Loeffler’s $200 billion figure ultimately proves accurate or not, one thing is becoming impossible to ignore: Americans are losing confidence in the government’s ability — or willingness — to safeguard taxpayer dollars.
The Trump administration is tackling the problem head-on, and its efforts are exposing glaring weaknesses in government oversight and accountability. For those of us who play by the rules, that is a very welcome development indeed.
Trump Administration’s Full-Scale War on Fraud https://t.co/wcACEJLrFn
— Rapid Response 47 (@RapidResponse47) May 26, 2026
Elizabeth writes commentary for Legal Insurrection and The Washington Examiner. She is an academy fellow at The Heritage Foundation. Please follow Elizabeth on LinkedIn.
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Hide aka steal.
Governmental accounting would be greatly simplified if it accounted only for money not wasted, stolen or misspent. It would fit on the back of a napkin.
The party of the mentally ill scams are trying to bankrupt the country. Trash to economy to weaken America towards communism. How can they look at themself in the mirror each day? The enemy within needs to be put in jail for life. If the demoncrats return to power it could be the end of our country. They are very open about their disdain for the constitution and American values. Their threats of reparations when they gain power again are mind boggling. This behavior needs to be crushed if we are to survive. Wake up America before it is to late.
How can they look at them self in the mirror each day? Communists don’t see anything looking back.
Barred from getting future SBA loans?
I’d prefer mass hangings, televised.
It certainly would send a message to refresh the Tree of Liberty and force every screen to broadcast it live.
You Say You Want A Revolution?
Vote for me, I’ll be better than the other guy.
We need people who will stay off the swamps payroll and prosecute the politicians who have done nothing to end this theft.
Because we have no government, armed with power, capable of contending with human passions, unbridled by morality and religion. Avarice, ambition, revenge and licentiousness would break the strongest cords of our Constitution, as a whale goes through a net. Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.
John Adams: Letter to Officers of the Mass. Militia, 1798
I think that every appropriation bill should have to cite where in the Constitution the government is authorized to spend that money. All of the fraud I am seeing arise from programs that the government has taken on that are way out of bounds of what they are entitled to do. It’s time to reexamine all programs and cut those off that are not constitutional.
I agree with this. It is time to end programs that are outside of the constitutional responsibility of government.
I would also note that the best way to eliminate fraud in programs is to entirely eliminate those programs, even if constitutional. A program allowed by the Constitution is not necessarily MANDATED by the Constitution.
Remy, Lol!!! Did you watch yourself sucking up the TDS today??? It was laughable. Do you get bonuses for that or just kudos from your equally deranged friends?
We need more money!
Medicare is bankrupt!
Raise the taxes!!!
Nah Medicare won’t expend its trust fund until 2032. Even then it really only impacts Part A benefits which will take a 10-12% haircut Social Security retirement benefits face roughly a 25% haircut the same year for the same reason; EVERY dime + interest borrowed by Treasury from the TF will have been repaid ….leaving current payroll taxes as the only funding mechanism…..unless of course we decide to borrow more $ on a buy now/pay later basis and further burden younger generations with even more debt OR we take your advice to raise taxes.
IMO passing on more debt to our children, grandchildren and great grandchildren while refusing to accept small reductions in benefits seems like a recipe for intergenerational strife. Especially since Gen X and younger will get less benefit at higher payroll tax burden and an increased full retirement age. Telling them to pony up more $ to support Silent Gen and Boomers while those same generations refuse to share in the sacrifice may not be successful as a political strategy.
Personally I’d say let it happen. The bulk of the benefits would remain available and folks can support their own Family members if it comes to it….assuming they haven’t alienated their Sons/Daughters and/or their Spouses to the point they are unwilling to take them into their homes. Humanity survived without social Security so we can certainly get by on 80%+ of the benefit.
“accept small reductions”??? what!!!!?
how about more enforcement against fraud!!
Sure by all means identify and prosecute fraudsters. The fiscal reality of SSA retirement is that the trust fund is exhausted in 2032. Same for Medicare. SSA retirement faces approx 25% haircut and Medicare Part A roughly 10-12% reduction in benefits.
That’s assuming we make no reforms…. which seems a safe bet given the lack of Congressional willingness to do it or Silent Gen/Boomers to accept shared sacrifice.
I’m willing to be convinced that Gen X and younger generations should get evn less, pay even more payroll tax and/or more income tax to support higher benefits for Silent Gen/Boomers but y’all ain’t making the case. The reality is Gen X and younger already pay more in lifetime payroll taxes, will receive comparatively less generous benefits and our full retirement age is two years later. Any proposal is gonna have to be a better deal than we’re getting now even with the looming benefit reduction in 2032 to create an incentive for us to accept it. That means shared sacrifice from current beneficiaries which doesn’t seem to be what you’re proposing.
Cutting fraud is important but that alone won’t close the fiscal gap anymore than cutting ‘foreign aid’ will close the budget deficit. Structural reform and shared sacrifice across generations to include Silent Gen and Boomers will be necessary.
we’ve already made “the sacrifice” by having the government take our money by force so that they may pass it around as they please
the fiscal gap is suppoe to be limited by the very fact that the governments only jobs are
military
courts
treasury
and only the military should have any tax benefits for the services demanded of the military
Bruh,
1. Those arguments apply to every generation.
2. Gen X and younger paid current higher payroll tax rates since their entire adult working lifetime. Silent/Boomers didn’t.
3. Silent Gen and Boomers joined with lefty groups like AARP to block reforms for decades.
Are you proposing that we undo the recent change to make SSA retirement non taxable for many beneficiaries?
SSA is suboptimal. We all know that. You ain’t making any convincing argument to Gen X and younger to keep benefits in place unchanged for Silent/Boomers.
Either we accept the looming haircut OR to keep benefit levels we gotta:
1. Raise Payroll taxes, won’t be just high earners either and we all know it.
2. Increase retirement age (again) Gen X full retirement age ie 67 not 65 as for Silent/Boomers.
3. Borrow more $ to finance the delta between SSA revenue and expenditure. In essence transferring funds from general Treasury to support SSA benefits putting an even higher debt burden on younger generations.
4. Tweak qualifications. Examples increase # of years worked to qualify from 10 to 25, increase working lifetime divisor from 35 years to 48 years for Silent/Boomers and to 50 for gen X.
5. End Spousal benefits. Folks can buy life IN and/or be thrifty v asking Uncle Sugar to pay for their lack of frugality…after all it is an individual program based on individual working lifetime.
6. Cut benefits across the board for EVERY generation by some %. Ten % seems ok.
7. End automatic COLA increases.
8. Combo of above.
What I keep seeing in response is ‘it’s mine, gimme’. AKA ‘give us the ring my precious’ I hate to tell you but acting like a toddler with a tantrum isn’t gonna endear y’all to younger generations nor convince them to make even larger sacrifices than they already are to support benefit levels for Silent/Boomer gen who often seem to downplay economic issues of younger generations. Those ‘bootstraps’ ‘nobody in those generations wants to work’ arguments are about to be uno reversed if y’all don’t offer up real solutions and shared sacrifice.
If you throw gold bars off the Titanic someone is going to catch them.
Speaking of which… the IC apparently had zero control measures in place to have handed over tens of millions in gold to some CIA goon without any oversight/audit.
fjb and wife colluded against the american people along with the msm and at some point someone is going to slip up and show how they cheated ( other than the things we have already seen for ourselves) trump out of the 2020 victory
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