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 conducting a years-long investigation into how the Small Business Administration (SBA) has handled the emergency financial aid programs that sprung up when state governments shut down businesses across the country during the pandemic.
“In creating the COVID Lending Programs, Congress understood that the relief funds needed to be issued quickly to help businesses cope with the economic strain of the pandemic,” a new report released by the committee said.
“The rush to get pandemic relief funding out quickly resulted in shortcuts being taken to deliver aid quickly to small businesses in hopes of recouping improper disbursements on the back end.”
The report also accused the SBA of making “numerous decisions that decreased the likelihood” the government would be able to recoup any money given under false pretenses.
“In total, it is likely that $200 billion from the COVID Lending Programs were disbursed to fraudulent recipients,” the report said.