Vice President (VP) JD Vance announced that the Trump administration will suspend 870,000 people suspected of defrauding the government from receiving federal government loans.
“If you screwed the American taxpayer, the federal government is now going to say you’re cut off, no more. You shouldn’t be applying anymore, and if you do apply, you’re no longer able to get those benefits,” VP Vance said during the White House Task Force to Eliminate Fraud press conference.
PPP Program Abused By 870,000 People
According to VP Vance, these individuals took advantage of the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by President Donald Trump during his first term.
This program sought to ensure American small businesses could operate amid the COVID-19 pandemic and that American workers were supported, VP Vance said.
“But as [it] happens with so many of the programs that are born out of the generosity of the taxpayer, we have many, many people who took advantage of those programs,” Vance added.
SBA Administrator Confirms $39 Billion Tied To The Fraudsters
During the conference, Small Business Administration (SBA) Administrator Kelly Loeffler confirmed that the announced suspensions are linked to an estimated $39 billion of taxpayer funds in suspected fraud from across 45 states and territories.
Loeffler affirmed that exposing the fraudsters and barring them from accessing federal funds is only the first step.
The administrator announced that the SBA is launching an effort to retrieve the stolen funds and prosecute these individuals.
"The message is simple. If you stole from the paycheck protection program, if you created fake companies, and lied about your employees. We know who you are, we will claw back the money, and where warranted, we will refer you to law enforcement. So that you can face the jail time that you deserve," Loeffler asserted.
Attorney General Todd Blanche and Federal Bureau of Investigation (FBI) Director Kash Patel also joined VP Vance and Loeffler to detail the effort.
