A new report from the House of Representatives is accusing the Biden administration of failing to recover some $200 billion in fraudulent COVID-19 pandemic loans. The House Small Business Committee, led by Chairman Roger Williams, R-Texas, has been investigating how the Small Business Administration (SBA) handled emergency financial aid programs during the pandemic.
According to the report, in total, $200 billion from the COVID lending programs were disbursed to fraudulent recipients. Out of the $5.5 trillion approved for pandemic aid, $1.2 trillion went to the SBA through legislation like the CARES Act and the American Rescue Plan.
The report criticized the SBA for making decisions that decreased the likelihood of recouping money given under false pretenses. It also accused Democrats of focusing more on the Paycheck Protection Program (PPP) rather than the Economic Injury Disaster Loan (EIDL), which saw $136 billion in fraud compared to PPP’s $64 billion.
The report acknowledged the strain on the SBA’s infrastructure due to increased responsibility in 2020. SBA employees worked tirelessly to set up the lending programs, but lacked adequate support to make them fraud-resistant. The Biden administration was criticized for not implementing enough anti-fraud measures and failing to recover lost funds.
The report called for reforms in the COVID loan system and emphasized the need for oversight beneficial to the American people. It also highlighted the higher fraud rate in EIDL compared to PPP and the importance of making substantial changes to prevent fraud in the future.
Fox News Digital reached out to the SBA and the House Small Business Committee’s Democratic minority for comment on the report’s findings.
