Elon Musk has blown the whistle on a staggering level of corruption inside the Small Business Administration (SBA), revealing that the federal agency awarded hundreds of millions of dollars in fraudulent loans—including payouts to children as young as nine months old.
During a recent White House cabinet meeting, Musk, who heads the Department of Government Efficiency (DOGE), disclosed that the SBA had disbursed approximately $330 million in loans to individuals under the age of 11. One of the most egregious cases involved a $100,000 business loan granted to a 9-month-old infant.
“That’s a very precocious baby we’re talking about here,” Musk quipped, underscoring just how absurd and alarming the agency’s lack of oversight has become.
Loeffler Responds: “We’re Cleaning House”
SBA Administrator Kelly Loeffler responded by acknowledging the scale of the problem and vowing swift action.
“We’re tackling the fraud, waste, and abuse at the agency,” she said. “We are implementing a zero-tolerance policy going forward.”
Loeffler noted that the fraud uncovered spans hundreds of billions of dollars over the past several years, most of it unprosecuted under previous administrations. The agency, she said, is now working closely with DOGE to tighten eligibility requirements, overhaul verification systems, and hold bad actors accountable.
Trump: “This Is Pure Fraud, Not Just Waste”
President Donald Trump did not mince words about the scandal, making it clear that the administration intends to root out corruption wherever it exists—especially in bloated government agencies.
“It’s pure fraud,” Trump said. “We like to use the words ‘waste’ and ‘abuse’ because they sort of sound nicer, but what we’re seeing here isn’t just waste—it’s criminal.”
He praised Musk and the DOGE team for uncovering what he called “one of the most embarrassing failures of government oversight in American history.”
Next Steps: Prosecutions and Policy Reform
The revelations have triggered a series of internal audits and criminal investigations, and the White House is expected to unveil sweeping reforms to SBA loan programs in the coming weeks. Sources say the Department of Justice is also preparing charges in multiple fraud cases, with a priority on recouping taxpayer dollars and prosecuting those responsible.
Musk has made it clear that DOGE is just getting started.
“This is only one agency,” he said. “Imagine what we’ll find when we dig deeper.”
The Bottom Line
What began as an internal audit has turned into a full-blown scandal that’s shaking up Washington. With billions in taxpayer money squandered through incompetence and outright fraud, the Trump administration is now charging forward with a crackdown on bureaucratic corruption—and Elon Musk is leading the charge.
Elon Musk at The White House cabinet meeting: “A clear case of fraud was with the SBA, they were handing out $330 million worth of loans to people under the age of 11.. The youngest was a 9 month-old, who got a $100,000 loan… That’s a very precocious baby” pic.twitter.com/dAt4WWQ3iL
— America (@america) March 24, 2025