The Trump Small Business Administration has uncovered billions of dollars in alleged fraud tied to pandemic-era small business loan programs, prompting renewed scrutiny of how relief funds were distributed and monitored.

During an interview, Maria Bartiromo referenced the scale of the findings.

“Committing over eight and a half billion dollars in fraud. That's in addition to the agency's recent actions in Minnesota, you where you saw nearly 7000 borrowers worth roughly $440 million suspended,” Bartiromo said.

“Kelly, what's going on? Where specifically is the fraud?”

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Kelly Loeffler said the fraud stems from emergency loan programs created during the COVID-19 pandemic.

“Well, Maria, this fraud relates to pandemic era loan programs that were broadly defrauded,” Loeffler said.

“And it was widely reported that about 200 billion, as much as 200 billion, could have been fraudulently gained out of the 1.2 trillion that went out for small business lending.”

The federal government distributed approximately $1.2 trillion in relief aimed at helping small businesses remain operational during pandemic shutdowns.

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According to Loeffler, as much as $200 billion of that total may have been obtained fraudulently.

“So it's breathtaking,” Loeffler said, describing the potential scope of the losses.

She also criticized how the issue was addressed under the previous administration.

“What's even worse is the Biden administration swept it under the rug, started forgiving those fraudulent loans,” Loeffler said.

The Trump SBA, she said, is now reviewing those loans and pursuing enforcement action.

“We're going back and saying that will not stand,” Loeffler said.

“We're going to have accountability.”

Loeffler emphasized that individuals who fraudulently obtained relief funds would face consequences.

“There's going to be restitution and jail time for people who defraud hard, working taxpayers and honest, deserving small businesses,” she said.

The agency’s review identified at least $8.6 billion in suspected fraud in California.

In Minnesota, nearly 7,000 borrowers representing roughly $440 million in loans were suspended as part of enforcement actions.

“8.6 billion minimally in California,” Loeffler said, pointing to the concentration of questionable activity in one state.

She argued that the structure of the programs contributed to the fraud.

“That shows these socialist welfare state policies don't work,” Loeffler said.

“They attract criminals that want to defraud American citizens, and we're making sure that we draw the line on that.”

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The investigation is ongoing as the administration reviews pandemic-era lending programs and examines cases where loans may have been improperly granted or forgiven.

Loeffler indicated that the focus now is on recovering funds where possible and pursuing criminal penalties in cases of deliberate fraud.

The revelations come as lawmakers and federal agencies continue to assess the long-term impact of emergency relief programs enacted during the pandemic and the oversight mechanisms that were in place at the time.

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