Vice President JD Vance said that nearly 870,000 individuals suspected of defrauding federal loan programs will be permanently barred from receiving small business loans. The fraud has potentially cost the Small Business Administration (SBA) as much as $39 billion through its COVID-19-era Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
On Monday, Vance stated that those who defraud the American taxpayer and take advantage of their 'generosity' will face stringent consequences.
"If you screw the American taxpayer, the Federal government is now gonna say you're cut off — no more," said Vance. "You shouldn't be applying anymore, and if you do apply, you're no longer able to get those benefits," he added.
The Vice President also said that anyone who believes they were wrongfully barred from applying for loans can undergo a review process, but he doesn't expect anyone to do so.
"Because every single person who has defrauded the government knows when they've done it," he said.
DOJ, SBA Step Up COVID Loan Fraud Fight
Vance's remarks came as the Justice Department launched a nationwide crackdown on alleged fraud tied to PPP loans.
The Department of Justice has charged over 160 defendants this summer alone, accusing them of defrauding taxpayer-funded programs of potentially $245 million. The press conference also included FBI Director Kash Patel, Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division, and Sen. Eric Schmitt (R-Mo.).
Meanwhile, SBA Administrator Kelly Loeffler stated that identifying these criminals is just the first step and that $22 billion has been referred to the United States Treasury for collection this summer. She said the latest suspensions are linked to an estimated $39 billion in suspected fraud across 45 states and territories, bringing the total to roughly $49 billion nationwide.
Vance Intensifies Anti-Fraud Campaign
This crackdown aligns with Vance's previous efforts to combat fraud. At the Republican midterm convention last week, Vance said his anti-fraud task force had found about $250 billion of fraud so far.
In May, he backed an aggressive anti-fraud campaign targeting billions in recovery benefits and healthcare programs. He emphasized that everyone should care about rooting out fraud and saving American taxpayers' money.
Earlier that same month, Vance announced a series of measures to combat fraud in federal health programs, including a significant deferral of $1.3 billion in Medicaid funding to California. He highlighted the state's perceived lax approach to fraud as the reason behind the move, alleging that fraudsters have pushed unnecessary prescriptions and medications onto people who did not need them.
