$200 billion+: Pandemic small-business loans that went to likely fraud

At least 17% of all Paycheck Protection Program and Covid disaster-loan money went out on potentially fraudulent applications.

FraudBadPublic receipt
Small Business Administration

Potentially fraudulent PPP and EIDL moneyOver $200B¹
Share of all PPP and EIDL moneyAt least 17%¹
Total disbursedAbout $1.2 trillion¹
Seized or returned to SBANearly $30B¹
Who kept the rest████████████████

fraudbad.comNo taxation without receipts

What happened

The Paycheck Protection Program and Covid Economic Injury Disaster Loans moved about $1.2 trillion in a matter of months.

In June 2023 the Small Business Administration's inspector general estimated more than $200 billion of it went out on applications that showed signs of fraud.

Why nobody caught it

Applicants largely vouched for themselves, and money moved in days instead of weeks.
Nearly $30 billion has been seized or returned. That is less than a sixth of the estimate.

How sure are we?

Estimated

An auditor, inspector general or the agency itself estimated the fraud. It's a measured range, not a list of names.

"Potentially fraudulent" means the application tripped fraud warning signs. It is an inspector general's estimate, not a count of convictions.

Sources

Report 23-09: COVID-19 pandemic EIDL and PPP loan fraud landscapeSBA Office of Inspector General · Jun 27, 2023

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