SPRINGFIELD, IL — Yesterday, the House Committee on Small Business launched new oversight of COVID-era SBA lending programs, requesting information from the Small Business Administration following reports of historic fraud tied to nonprofit networks in Minnesota. The review, including a significant fraud probe in Minnesota over roughly $400 million in loans, underscores how deeply flawed some emergency funding programs have been.

“Pandemic-era relief programs, like the CARES Act and ARPA, were designed to keep small businesses afloat and help families through an unprecedented crisis,” said Tracy. “But instead of common-sense guardrails, Washington rushed trillions of dollars out the door with weak oversight and self-certification loopholes. The result was predictable: fraud on a massive scale, with taxpayer dollars diverted away from the people who truly needed help.”

Illinois has seen alarming pandemic relief fraud issues involving government employees of Governor Pritzker and other top Democrat government officials. Hundreds of such employees are under investigation for improperly obtaining Paycheck Protection Program (PPP) loans that were meant to support struggling small businesses.

Tracy continued: “Whether it’s Minneapolis or right here in Illinois, the lesson is clear: Fraud drains resources away from Americans in need, drives up costs for taxpayers, and undermines trust in programs that are supposed to help people survive tough times.

“Illinois’ working families need a strong, common-sense voice in Washington that will fight waste, lower the cost-of-living, and make sure federal programs work for everyday Illinoisans.”

Don Tracy is available for phone, video, and in-studio interviews on this topic.

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