WASHINGTON — Following President Donald J. Trump’s announcement establishing the Fraud Whistleblower Incentive Program (WHIP), the U.S. Small Business Administration (SBA) today called on members of the public, federal employees, lenders, and small business owners to report suspected SBA loan and grant fraud through the new centralized federal portal at america.gov/fraud.
“Since Day One, the Trump SBA has been laser-focused on addressing the $200 billion in potential Paycheck Protection Program and COVID-EIDL fraud that was identified – but went unaddressed – during the Biden Administration,” said SBA Administrator Kelly Loeffler. “With the support of the White House Fraud Task Force, we have exposed billions in suspected fraud, sent billions more to Treasury for collections, and delivered real accountability to criminal fraudsters. Now, through President Trump’s Fraud Whistleblower Incentive Program, we are offering Americans the platform and the financial incentives to help expose bad actors and deliver justice on behalf of honest business owners and taxpayers. The SBA encourages members of the public to report suspected fraud—including fraud tied to pandemic loan programs—at america.gov/fraud.”
The new program comes as the SBA continues its sweeping review of pandemic-era financial assistance, including the Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (COVID EIDL) Program. During the Biden Administration, the SBA Office of Inspector General estimated that more than $200 billion of the approximately $1.2 trillion disbursed through pandemic relief programs went to potentially fraudulent recipients. In close collaboration with the White House Task Force to Eliminate Fraud, the Trump SBA has aggressively scrutinized that legacy portfolio to uncover illicit activity and pursue enforcement action.
To date, the Trump SBA has helped expose approximately $122 billion in suspected pandemic-era fraud through coordinated referrals to federal partners. An SBA referral to the Internal Revenue Service led to the identification of discrepancies associated with approximately $100 billion in PPP and COVID EIDL loans, while the agency separately referred approximately $22 billion in suspected fraudulent PPP and COVID EIDL debt to the U.S. Department of the Treasury for collection. In addition to these referrals, the SBA has announced suspensions for approximately 1 million borrowers tied to about $50 billion in suspected pandemic-era fraud, barring them from future SBA lending and federal contracting programs.
The new Fraud Whistleblower Incentive Program, administered by the U.S. Department of Justice’s National Fraud Enforcement Division, incentivizes individuals with direct knowledge of federal program theft, fraud, or misuse to submit tips. Under the program, qualifying whistleblowers whose original information leads to successful federal enforcement actions or criminal charges can receive cash rewards.
The SBA is specifically urging the public, federal employees, industry insiders, and bank compliance officers to submit tips regarding potential fraud across pandemic relief programs, including PPP, COVID EIDL, the Shuttered Venue Operators Grant (SVOG) Program, and the Restaurant Revitalization Fund (RRF). Examples of potentially fraudulent or improper conduct may include:
- Submitting false, fabricated, or altered financial records, payroll reports, or tax documents to secure SBA-backed commercial financing.
- Misrepresenting business ownership, size, location, or veteran or disadvantaged status to secure federal contracting set-asides or grant awards.
- Using SBA loan proceeds, disaster loans, or grant funds for personal enrichment.
- Unlawful kickbacks, fee-splitting, or misrepresentations involving the identities of loan packagers, brokers, or borrowers.
- Continued possession or misuse of government assistance by phantom or shell entities.
