March 9, 2025 – Washington, D.C. - A stunning revelation has sent shockwaves through government oversight circles, the Department of Government Efficiency (DOGE), spearheaded by President Trump’s administration, has unearthed evidence of widespread fraud in the Small Business Administration’s (SBA) loan programs during the COVID-19 pandemic. According to a recent report, the SBA disbursed a staggering 5,593 loans totaling $312 million to borrowers whose sole listed owners were 11 years old or younger at the time of application in 2020 and 2021. Even more alarming, every one of these loans was tied to Social Security Numbers (SSNs) with mismatched or incorrect names, raising serious questions about the integrity of the lending process.
The findings, brought to light by DOGE’s rigorous audit of federal spending, point to what experts are calling a glaring red flag for identity theft and systemic abuse of emergency relief funds. While it’s technically possible for minors to own businesses under specific legal arrangements—such as trusts or parental oversight—the sheer volume of these cases defies belief. “We’re not talking about a handful of ambitious preteens launching startups,” said a DOGE spokesperson. “This is a pattern—5,593 instances, all with SSN discrepancies. It’s not plausible that these were legitimate businesses. This smells like fraud, plain and simple.”
The loans in question were primarily issued under the SBA’s Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP), both of which were expanded during the pandemic to provide rapid financial relief to struggling businesses. In 2020, the SBA relaxed documentation requirements to expedite aid, a move that critics now say opened the door to exploitation. Taxpayers are calling this “massive corruption” and a “serious flaw in the system.” One user speculated that the SSN mismatches likely stem from a long-standing mess in the Social Security database, which scammers may have exploited to siphon funds.
Financial analysts suggest the fraud could have been executed by identity thieves using stolen or fabricated SSNs of children, whose credit profiles are often clean and rarely monitored. The incorrect names attached to these numbers—possibly typos, aliases, or entirely fictitious identities—slipped through the SBA’s verification process, which was under immense pressure to distribute billions in aid quickly. “Kids don’t run companies,” one X user quipped, “but apparently they were cashing checks.”
The implications are staggering. The $312 million misallocated to these dubious borrowers represents a significant chunk of taxpayer money intended to support legitimate small businesses during an unprecedented crisis. DOGE’s investigation is part of a broader push to root out waste and abuse in federal programs, and this discovery has intensified calls for accountability. “We need a complete overhaul,” another X post demanded, reflecting public outrage over the findings.
SBA officials have yet to issue a detailed response, though past statements have emphasized their efforts to combat fraud since tightening requirements in 2021. The agency has previously acknowledged that over 1.1 million EIDL applications were flagged for identity theft concerns, but the DOGE report suggests the problem may run deeper than previously admitted. With interest accruing on these loans—many of which carry 30-year terms—the financial fallout could burden taxpayers for decades if the funds aren’t recovered.
As DOGE continues its probe, pressure is mounting for congressional hearings and criminal investigations into how such a massive oversight occurred. For now, the image of thousands of children unwittingly—or fraudulently—tied to multimillion-dollar loans stands as a stark symbol of a system in disarray. “This is just the tip of the iceberg,” the DOGE spokesperson warned. “We’re digging deeper, and we won’t stop until every dollar is accounted for.”