SBA Partners with Palantir Amid Nationwide Fraud Probe

• •SBA has contracted Palantir for fraud detection in pandemic loans.
• •Over 111,000 borrowers in California and nearly 7,000 in Minnesota have been suspended for fraud.
• •The SBA's AI fraud detection pilot lacks necessary federal risk management safeguards.

The Small Business Administration (SBA) has contracted Palantir for $300,000 to assist in a nationwide investigation into suspected loan fraud, particularly focusing on pandemic-era loans. This comes after the SBA suspended 6,900 borrowers in Minnesota and 111,620 in California for alleged fraudulent activities, totaling over $400 million in Minnesota and $8.6 billion in California. The SBA's Office of Inspector General criticized the agency for not classifying its AI fraud detection pilot as high-impact, which would require adherence to federal risk management standards. The SBA is expanding its investigations nationwide and working with law enforcement to hold accountable those who defrauded American taxpayers. The fraud allegations gained traction after a viral video surfaced, prompting federal scrutiny and action. The SBA's efforts are part of a broader initiative under the Trump administration to address an estimated $200 billion in pandemic-era fraud.