In a scandal that’s rattled the federal loan system, the Department of Government Efficiency (DOGE) has uncovered over $330 million in fraudulent Small Business Administration (SBA) loans issued to minors, some under the age of 11.
Among the most jaw-dropping examples: a $100,000 loan reportedly granted to a 9-month-old infant.
Attorney General Pam Bondi didn’t mince words. In a press conference Tuesday morning, she announced the creation of a DOJ task force dedicated to prosecuting what she called “one of the most disturbing patterns of financial abuse in recent history.”
“This isn’t just fraud,” Bondi said. “It’s a systemic failure to verify even the most basic applicant information. We’re talking about babies receiving business loans. That’s not just outrageous, it’s criminal.”
The investigation was spearheaded by DOGE analysts, who began combing through SBA disbursement data after internal anomalies flagged a string of suspicious approvals. In many cases, Social Security Numbers and birthdates clearly indicated applicants were legally ineligible to apply, yet were still approved and funded.
According to internal reports, the loans were issued between 2020 and 2022, largely under COVID-era emergency lending programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). Lax verification protocols and massive application volumes created the perfect environment for fraudsters to exploit the system.
The DOJ has already subpoenaed multiple financial institutions and third-party processors that helped distribute SBA funds during the pandemic. Investigators are now tracing the flow of funds to determine how much was pocketed by adult criminals using minors’ identities, and how much may have been the result of automated system failures or insider manipulation.
As part of the government’s immediate response, DOGE is rolling out enhanced age verification systems for all federal loan applications. These new protocols will cross-reference submitted identities with SSA and DHS databases in real time to prevent future abuse.
Bondi’s task force, which includes officials from the FBI, Treasury, and SSA, is expected to begin issuing indictments within weeks. “Let this be a message,” she said. “If you stole from taxpayers under a child’s name, we’re coming for you.”
DOGE found $330 million in SBA loans to children under 11 years old with the youngest being a 9-month-old baby who received a $100,000 loan.
Who cashed these checks?? pic.twitter.com/5KbgaOjEYs
— Libs of TikTok (@libsoftiktok) March 24, 2025
This latest development adds fuel to ongoing scrutiny over how billions in pandemic-era relief funds were allocated, and how little oversight was in place at the time. Congressional hearings are expected in April, with watchdog groups calling for aggressive reforms to federal lending systems.
For now, the spotlight is on the SBA and its partners, as the government scrambles to explain how toddlers were accidentally greenlit for six-figure loans, and why it took years to find out.
