Small Business Admin. suspends thousands of Minnesota borrowers due to alleged fraud

WASHINGTON (TNND) — Small Business Administration head Kelly Loeffler announced Thursday that the administration suspended thousands of borrowers from Minnesota due to alleged fraudulent activity.

“Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity,” she wrote on X. “In total, these borrowers were approved for 7,900 PPP and EIDL loans worth approximately $400M.”

She said that over the last week, the agency had been reviewing pandemic-era level PPP and EIDL loans that were approved in Minnesota for alleged fraud related to the COVID-19 pandemic.

“These individuals will be banned from all SBA loan programs, including disaster loans, going forward,” the post continued. “We will also refer every case, where appropriate, to federal law enforcement for prosecution and repayment.”

She said that Minnesota is just the first state that is being reviewed for fraud.

“After years, the American people will finally begin to see the criminals who stole from law-abiding taxpayers held accountable – and this is just the first state,” her post concluded.

Minnesota has been in the news for the past few weeks due to independent reporter Nick Shirley going to daycares in Minnesota on a weekday and noting that they appeared vacant.

He alleged that millions of taxpayer dollars were funding these daycare centers, resulting in the Trump administration taking action.

The U.S. Department of Health and Human Services announced Tuesday that it would be freezing childcare payments to Minnesota as a result of all the fraud.