WASHINGTON, D.C. — The U.S. Small Business Administration (SBA) has introduced enhanced verification measures in its loan application process to strengthen protections against fraud. These changes aim to ensure its funding reaches only eligible small business owners and to curtail abuses of federal resources.
The reforms, developed with assistance from the Department of Government Efficiency (DOGE), were prompted by recent findings of significant misuse within SBA programs. DOGE’s investigations uncovered alarming cases, including over $630 million allocated to applicants under the age of 11 and over the age of 115, based on U.S. Social Security Administration data.
Key updates to the SBA loan application process include:
- Citizenship Verification: Loan applicants must now verify their citizenship, ensuring compliance with President Trump’s executive order prohibiting taxpayer-supported aid to illegal aliens.
- Date of Birth Verification: Applicants are required to confirm their age and date of birth, reducing the risk of fraud involving identities of deceased individuals or children.
- Automatic Fraud Alerts: Applications claiming an age under 18 or over 115 will trigger immediate alerts during processing.
“With the help of DOGE, the SBA has already made a number of common-sense reforms to prevent the rampant fraud we’ve seen over the last four years,” stated SBA Administrator Kelly Loeffler. “Unlike the previous Administration, we respect the American taxpayer and are dedicated to ensuring every dollar entrusted to this agency goes to support eligible, legitimate small businesses. With these simple fraud prevention measures, we will end the abuse of our loan programs – with stronger safeguards to hold bad actors accountable.”
Examples of past fraud reinforce the necessity of these changes. DOGE reports that between 2020 and 2021, more than 3,000 loans totaling $333 million were issued to borrowers listed as over 115 years old. Additionally, over 5,500 loans worth approximately $300 million were disbursed to children under the age of 11.
By tightening its oversight and verification systems, the SBA aims to restore trust in its programs and ensure that financial support reaches the American small businesses it was designed to serve.
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