Musk Reveals Shocking Cases Of Fraud Found At Small Business Administration

Elon Musk, the world’s most successful businessman and President Donald Trump’s top White House adviser, said this week that the Department of Government Efficiency (DOGE) has uncovered shocking cases of fraud within the federal government.

Musk made the remarks during a Monday meeting with the president and his cabinet secretaries.

“One case of fraud was with the Small Business Administration, where they were handing out loans—$330 million worth of loans—to people under the age of 11,” Musk said. “I think the youngest, Kelly, was a 9-month-old who got a $100,000 loan.”

“That’s a very precocious baby we’re talking about here,” Musk quipped.

SBA Administrator Kelly Loeffler followed up Musk’s remarks by saying, “We’re tackling the fraud, waste, and abuse at the agency.”

“We’ve seen, you know, hundreds of billions of dollars of fraud go unprosecuted, so we’re taking that on,” she said. “We have a zero-tolerance policy for fraud, and we continue to crack down on it and make sure people are held accountable.”

Trump said that they have found “far too much” fraud, waste, and abuse in the government over the last couple of months.

“It’s pure fraud,” he said. “We like to use the words ‘waste’ and ‘abuse’ because they sort of sound good, but many of these things are pure fraud.”

WATCH:

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