[hypothesis]

Not OP, but here is some data:

“We estimate that SBA disbursed over $200 billion in potentially fraudulent COVID-19 EIDLs, EIDL Targeted Advances, Supplemental Targeted Advances, and PPP loans. This means at least 17 percent of all COVID-19 EIDL and PPP funds were disbursed to potentially fraudulent actors.”

https://www.sba.gov/document/report-23-09-covid-19-pandemic-...

IRS also covered some:

https://www.irs.gov/newsroom/irs-criminal-investigation-rele...

[chii]

a program administered with poor oversight (may be due to time constraints or whatever reason) doesn't make that program a poor policy decision.

I think means tested welfare can backfire a lot in ways that locks people into dependency on the welfare and not look for a higher paying job.