LIB,MR BEARS said:
Check me if I am wrong here, but the vast majority of these loans were made when Trump was running the government.
Also, my educated guess is that by "fraudulent" the SBA means "uncollectable." which is far from the same thing. Lots of businesses went under in the pandemic despite government-backed loans. Usually a SBA referral to Treasury just means that the SBA has deemed the loan no longer suitabel for mdification or workout and gives it to Treasury for collection efforts. The SBA's press releases says this group of loans "was possibly fraudulent" without saying why.
If there was fraud the remedy is criminal referral which this was not. It is hilarious-sad watching all those who accuse centrists of being "sheep" fall hook, line, and sinker for every PR move the White House serves up.