JD Vance says nearly 870,000 suspected SBA fraudsters will be barred from loans

  • JD Vance said nearly 870,000 suspected pandemic-loan fraudsters will be permanently barred from SBA loans.
  • SBA officials linked suspected fraud to $39 billion across 45 states and territories, with $22 billion referred for collection.
  • Justice Department actions involved more than 160 defendants and approximately $245 million in intended losses.

Nearly 870,000 people suspected of defrauding federal pandemic-loan programs will be permanently barred from receiving small-business loans, Vice President JD Vance said as the Justice Department intensified its nationwide enforcement campaign. The suspected fraud may have cost the Small Business Administration as much as $39 billion through the Paycheck Protection Program and Economic Injury Disaster Loan program. SBA Administrator Kelly Loeffler said the latest suspensions were linked to suspected fraud across 45 states and territories, bringing the estimated nationwide total to roughly $49 billion, while $22 billion had been referred to the United States Treasury for collection this summer. The Justice Department said more than 160 defendants faced charges or other enforcement actions this summer involving approximately $245 million in intended losses. Its Operation No Doze campaign included felony charges against nearly 80 defendants, guilty pleas by about 43 defendants and sentences for roughly 40 others. The cases allege fabricated businesses, false payroll and revenue claims, identity theft and concealed foreign ties in PPP and EIDL applications. Vance said people who believe they were wrongfully barred can seek a review, although he said he did not expect many to do so. The broader campaign also includes federal-state partnerships, Treasury collection efforts and the Vice President’s wider anti-fraud initiatives involving federal benefits and healthcare programs.

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