A federal investigation has revealed that thousands of COVID relief loans were granted to applicants too young to legally own businesses, exposing yet another failure in government oversight. The Department of Government Efficiency (DOGE), working alongside the Small Business Administration (SBA), uncovered that 5,593 loans worth a total of $312 million were issued to borrowers under the age of 12.
Records show that every one of these loans used Social Security numbers that did not match the listed names, raising questions about the level of fraud that took place during the COVID-19 relief efforts in 2020 and 2021. While it is possible for minors to be part of legitimate business arrangements, the agency stated that such a large number of cases with incorrect SSNs is highly suspicious.
This revelation comes just days after DOGE also identified another $333 million in loans granted to individuals listed as being over 115 years old. In one instance, a 157-year-old recipient was approved for a $36,000 loan. These cases have drawn further scrutiny as many of these individuals were still marked as living in government databases, despite the obvious impossibility of their ages.
President Donald Trump addressed the issue in a speech before Congress, highlighting major flaws in federal records and pointing out that millions of people listed as 120 years or older were still receiving financial benefits. He vowed to put an end to the waste, fraud, and abuse that flourished under the previous administration.
Meanwhile, Elon Musk, leading the efforts at DOGE, met with House Republicans to discuss uncovering up to $1 trillion in wasted government spending. Lawmakers familiar with the meeting said Musk acknowledged mistakes would be made but assured them that the agency was committed to correcting issues quickly.
In addition to the fraudulent loans, DOGE also announced the cancellation of a $10.3 million Department of Agriculture contract that had been awarded to identify unnecessary government contracts — ironically proving its own inefficiency.
