Inspectors General from the Labor Department, Treasury Department, and Small Business Administration (SBA) testified on Covid-19 relief funding to the House Oversight Committee, stating that billions of dollars were lost through “fraud” and “waste” in what was “the biggest fraud in a generation.” $76 billion in “unemployment claims” were given out through fraudulent claims.
Sheldon Shoemaker, the SBA’s inspector general, estimated that $86 billion had been misappropriated via fraud and waste. He shared his expectation that his future revised estimate would grow, given that the $86 billion total did not yet include an analysis of the SBA’s Paycheck Protection Program (PPP) launched in 2020. He predicted a a future estimate of $100 billion or higher in losses via fraud and waste through the SBA’s “COVID-19 relief” measures, including the PPP and COVID-19 Economic Injury Disaster Loan (EIDL) program. “It will be more than $100 billion,” Shoemaker predicted of the SBA’s future and final estimate of money lost to fraud an waste via his agency’s “COVID-19 relief” spending.