Kansas City, Missouri — Vice President JD Vance said Monday that roughly 870,000 people linked to suspected fraud in pandemic-era small-business programs will be permanently barred from receiving future federal loans.
Speaking at an FBI field office in Kansas City, Vance said the Small Business Administration is expanding its crackdown on borrowers flagged for suspected fraud involving the Paycheck Protection Program and Economic Injury Disaster Loan program.
“If you screwed the American taxpayer, the federal government is now going to say, ‘You’re cut off. No more,’” Vance said.
The administration has been conducting a state-by-state review of pandemic loans. Earlier this year, the SBA said it had suspended more than 111,000 California borrowers tied to $8.6 billion in suspected fraud, 27,486 Ohio borrowers associated with $1.1 billion and 7,800 Wisconsin borrowers linked to $375 million.
The SBA has also sent 562,000 suspected fraudulent loans totaling about $22 billion to the Treasury Department for collection. The SBA inspector general has previously estimated that at least $200 billion in PPP and COVID-EIDL funds may have been fraudulently obtained.
Vance also said the Justice Department and SBA are pursuing criminal cases, with 90 prosecutorial decisions already made. DOJ has created a National Fraud Enforcement Division that is handling pandemic-relief cases as part of the broader White House Task Force to Eliminate Fraud.
The administration has not yet released a detailed breakdown showing how many of the 870,000 borrowers have been convicted, charged or merely flagged as suspected fraud cases.
Sources
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