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Government Promises to Crack Down on EIDL Loan Fraud

The Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration directed federal agencies to step up their efforts to investigate and prosecute fraud.

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Government Promises to Crack Down on EIDL Loan Fraud

The Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration has directed federal agencies to step up their efforts to investigate and prosecute fraud related to pandemic relief programs.

The relief programs were established to provide financial support to individuals and businesses impacted by the COVID-19 pandemic. Unfortunately, scammers have taken advantage of these programs and have stolen billions of dollars.

The Biden administration has taken several steps to combat this fraud. It has created a COVID-19 Fraud Enforcement Task Force to coordinate investigations and prosecutions across multiple agencies. The task force is also working to increase public awareness of COVID-19 fraud and how to report it.

In addition, the administration has directed federal agencies to take a more proactive approach to preventing fraud. This includes improving fraud detection systems and sharing data across agencies to identify fraudulent activity.

The Biden administration has also made it clear that it will hold those who engage in COVID-19 fraud accountable. The Department of Justice has already brought several cases against individuals and companies that have defrauded the relief programs.

There have been various estimates of the amount of fraud that has occurred in COVID-19 relief programs. According to a report from the Government Accountability Office (GAO) released in November 2020, the federal government had distributed more than $2.6 trillion in pandemic relief funds as of September 2020, and the GAO estimated that improper payments, including fraud, could range from $2 billion to $4 billion.

However, more recent estimates suggest that the amount of fraud could be higher. According to a report from the Office of the Special Inspector General for Pandemic Recovery (SIGPR) released in January 2021, there were "significant levels of fraud" in the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, with estimated losses of $4.6 billion to $5.4 billion. More recent estimates put the number at $60 billion.

In February 2021, the Department of Justice announced that it had charged more than 150 individuals with COVID-19 related fraud, including schemes related to PPP and EIDL. The DOJ also announced that it had recovered more than $580 million in COVID-19 related fraud cases.

So while it's difficult to estimate the exact amount of fraud that has occurred in COVID-19 relief programs, it's clear that it has been a significant problem.

If you have a EIDL loan issue of more that $30,000, contact our law firm to reserve a consultation time.

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$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

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