News of the Day April 28, 2026
SBA Sends 562,000 Suspected Fraudulent Loans to Treasury for Collections Totaling $22 Billion

Last Thursday, in coordination with the White House Task Force to Eliminate Fraud, the United States Small Business Administration (SBA) announced that it has referred  562,000 suspected fraudulent loans to the United States 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.

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.

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.