Elon Musk’s DOGE is backing the Small Business Administration (SBA) as it cracks down on fraudulent loans, which is a long-overdue move. The SBA’s new focus on preventing loans from going to ineligible recipients—like babies and the deceased—addresses a serious issue plaguing government relief programs. Musk’s support signals a shift toward accountability and efficiency, a much different reality than the previous administration's. His involvement in the Trump administration appears to bring much-needed attention to rooting out fraud in government-backed financial assistance.
On Monday, Musk, wearing a “Trump was right about everything” hat, exposed the abuse of loans. He revealed that DOGE found that children under 11 were taking out SBA loans totaling $330 million. The most alarming finding was that a nine-month-old was able to take out a $100,000 loan.
“No more loans to babies or people too old to be alive (i.e., stolen Social Security numbers),” Musk said in response.
JUST IN: Elon Musk says children under 11 years old were taking out SBA loans totaling $330 million.
— Collin Rugg (@CollinRugg) March 24, 2025
"I think the youngest was a nine-month-year-old who got a $100,000 loan."
"That's a very precocious baby we're talking about here." pic.twitter.com/aeAhnhRA5y
Musk’s comments respond to a new SBA rule that requires applicants to provide their date of birth in order to be considered for a loan. It also bans individuals under 18 or over 120 years old from receiving direct loans. The Tesla CEO previously called the federal loan program the “biggest fraud in history.”
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