Treasury Opens Fraud Probe on $9 Billion in Small Business Aid

Treasury Secretary Scott Bessent

Photographer: Eric Lee/Bloomberg

The US Treasury Department has opened an investigation into $9 billion in “preference-based contracting,” including the awarding of Small Business Administration funds.

Among the targets is a business development program designed to serve socially or economically disadvantaged individuals, which it said may have been abused by large companies using pass-through arrangements with smaller firms.