In yet another big move exposing the depth of fraud that has pilfered federal programs, at great expense to the American taxpayer, Trump Administration Small Business Administration (SBA) Administrator Kelly Loeffler announced that she had slashed about a quarter of the contractors involved with an infamous federal program and discovered about $5 billion in fraud.
For reference, the program involved is the SBA’s 8(a) program, which has long been despised by many conservatives because of how it is intended to be a DEI-type program providing special opportunities to minority contractors. It has also long been suspected of fraud.
That fraud appears to have not only been discovered, but discovered to have been rot within about a quarter of all the businesses involved in the program. Announcing as much on X, Administrator Loeffler said, “Today, SBA suspended 1,091 firms from the 8(a) Program – about a QUARTER of total program participants – after they refused to turn over basic financial documentation for our review.”
Adding to that, she noted that a whopping $5 billion appears to have been stolen from the program by that pool of over a thousand fraudulent contractors during the Biden Administration years alone. She said, “In total, the suspended firms received about $5 billion from the federal government from 2021-2024.”
Continuing, Loeffler noted how various shell companies were used by the fraudulent contractors to push DEI through federal contracting, saying, “We pledged last month that every contractor would be required to PROVE that they aren’t running one of the pass-through schemes or shell companies that gamed the system after the Biden Admin expanded the 8(a) Program to advance its DEI agenda.”
Concluding, she vowed that the corrupt and fraudulent activity is being rooted out entirely and those who have something to hide will be found and will be crushed. She said, “Now we’re taking immediate action with one simple principle: if you’ve got something to hide, you shouldn’t be doing business with the federal government.”
This comes after Loeffler, in late December of 2025, released a statement announcing the crackdown on fraudulent 8(a) contractors was beginning. She said, “Today, SBA has issued a letter to all 4,300 8(a) contractors across the federal government, ordering them to produce financial records as part of a comprehensive effort to root out fraud, waste, and abuse.”
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She then noted her suspicions at the time, saying, “All firms are required to provide documents from the last three fiscal years – including bank statements, employment records, contracting agreements, and subcontracting agreements. Evidence indicates that the 8(a) Program, initially designed for ‘socially and economically disadvantaged’ businesses, has become a pass-through vehicle for rampant abuse – especially during the Biden Administration, which aggressively prioritized DEI over merit in federal contracting.”
Concluding, she vowed the sort of sprawling crackdown that since appears to have actually come about, noting that her SBA would be thoroughly investigating all the contractors involved, and their contracts, saying, “The SBA is committed to reviewing every federal contract, contracting officer, and contractor – and working alongside law enforcement and other agencies to deliver accountability for taxpayers.”
Watch CNN’s token conservative, Scott Jennings, demand Bondi start arresting lawmakers and government officials in Minnesota over the fraud allowed in that state as well: