SBA Chief Loeffler to Newsmax: WH to Tackle Biden-era Loan Fraud

Kelly Loeffler, who leads the Small Business Administration under President Donald Trump, vowed Tuesday on Newsmax to crack down on hundreds of millions in fraudulent loans overlooked by the Biden administration, spotlighting shocking cases like a 9-month-old infant awarded $100,000.

The SBA administrator appeared on "Rob Schmitt Tonight" to address staggering fraud uncovered in SBA loans by the Department of Government Efficiency, including the recently revealed $330 million in loans that went to people listed as 115 years old in Social Security databases.

"Well, unfortunately, we have to believe it," Loeffler said of the reports. She credited Elon Musk and DOGE, stating: "Thank God for Elon Musk and his DOGE effort. I mean, this is a patriot who is working hard for the American taxpayer."

Loeffler highlighted the scale of the issue, pointing to "3,500 loans made to people over 114 years old for another $300 million," bringing the total to "$650 million in fraudulent loans."

She accused the prior administration of negligence: "For the four years under the Biden administration, they wanted to forgive [the loans] or kick that can down the road."

In contrast, she asserted the Trump administration's resolve: "Well, we're going to deal with it. We're going to make sure that waste, fraud, and abuse [are] dealt with. And the criminals who perpetrated the fraud are held accountable."

Loeffler outlined new safeguards to prevent fraud.

"We've also changed processes going forward to make it harder for people who want to game the system," she said, citing measures like "a birth date, Social Security check, and also citizenship check" to ensure funds reach legitimate recipients.

She stressed ongoing efforts to pursue perpetrators, adding, "We're going to continue to go after those criminals who committed fraud, whether during the pandemic or after."

When host Schmitt raised concerns about funds flowing overseas, Loeffler responded, "Well, thanks to DOGE, we're going to find out, and we're going to hold them accountable."

She suggested a lack of transparency in Washington, saying, "It's curious that the Washington complex doesn't want people to know, but we're getting to the bottom of where that fraud and abuse happened."

The revelations have intensified scrutiny of SBA oversight, with Loeffler positioning the Trump administration as committed to rooting out corruption and protecting taxpayer dollars.

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