The head of the US Small Business Administration (SBA), Kelly Loeffler, says the agency is preparing a national campaign to address fraud in federal programs, and has promised investigations in all 50 states.Speaking on the “Pod Force One” podcast, Loeffler said the effort will focus on identifying misuse of taxpayer funds and supporting a federal initiative led by US Vice President J.D. Vance.“We will deal with each state individually… We have other programs. This is not just one thing. We have other programs.” [the] The coronavirus era that we’re looking forward to, but we’re going to make sure that we contribute meaningfully to the vice presidency [JD] “Vance’s fraud task force, which he chairs, is very important to the American people,” she added.
The plan comes on the heels of US President Donald Trump’s announcement during his State of the Union address on February 24, in which he asked Vance to lead a “war on fraud” across federal programs.Vance had previously revealed that the administration was planning to appoint a new official to the Department of Justice. He was informally called the “Fraud Czar,” who would have national authority to investigate and prosecute misuse of federal funds.
Loeffler said the Small Business Administration has already begun screening several states for suspected misuse of funds. Her agency temporarily halted some SBA loan activities in Minnesota late last year and also investigated the misuse of taxpayer funds in California. She described the two countries as “two very large countries.”During the COVID-19 pandemic, the SBA has distributed approximately $1.2 trillion through various programs. Loeffler said nearly $200 billion of that money was used fraudulently.Since taking office in February 2025, Loeffler said the SBA has tried to tighten oversight and reduce internal shortcomings.“We started cracking down on all of that from the beginning,” she said. “I mean, let’s just talk about government waste, 90% of our employees have been working from home for four years,” she added.She said employees have been ordered back to offices and the agency’s workforce has been significantly reduced.“We reduced headcount by 54% in the first year, yet we continued to set a record size for the agency in its 72-year history,” she said.The SBA chief said the agency’s campaign aims to ensure taxpayer money is properly managed.
