SBA suspends nearly 7,000 Minnesota borrowers over suspected $400M pandemic loan fraud

Fox News ^ | 1/01/26 | Michael Sinkewicz

[Libloather]

The Small Business Administration (SBA) announced Thursday that it suspended 6,900 Minnesota borrowers after uncovering what it says is widespread suspected fraud.

SBA Administrator Kelly Loeffler said the agency reviewed thousands of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans approved in Minnesota, and identified nearly $400 million in potentially fraudulent loans tied to borrowers in Minnesota.

"These individuals will be banned from all SBA loan programs, including disaster loans, going forward," Loeffler wrote on X.

Loeffler said the agency will refer appropriate cases to federal law enforcement for prosecution and repayment.

"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," she stated.

The suspected fraudulent activity included 7,900 PPP and EIDL loans approved during the COVID-19 pandemic, Loeffler said.

The announcement comes as Minnesota Gov. Tim Walz and his administration face scrutiny over billions of dollars in social services fraud.

Loeffler sent a letter Tuesday to Walz on Dec. 23, telling him that her agency will "halt" more than $5.5 million in annual support to resource partners in the state "until further notice."

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TOPICS: Business/Economy; Conspiracy; Health/Medicine; History
KEYWORDS: fraud; loan; maine; minnesota; nowdobretfavre; ohio; oregon; pandemic

[Libloather]

Nasty place that Minnesota.

[The Free Engineer]

Banned? What about jailed?

[Vigilanteman]

Who would be left to govern Minnesota in that case?

[know.your.why]

Imagine the USA today under a Biden/Harris or Harris/Walz administration. Its becoming more and more interesting that the dems choice for VP is a corrupt lying crooked politician with everything to lose.

[Presbyterian Reporter]

“”””Since we have many FReepers that like to play around with AI, I would like to see if AI can find if any of the 539 Somali daycare centers in WA got a SBA loan from the Feds.”””

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I wrote the above on a WA Somali thread last night.

Good to see that the SBA is also looking into the Somalis who probably also took out a SBA loan to start-up their FAKE daycare centers.

[hal ogen]

What about “all assets seized” and “immediately deported”?

[bigdaddy45]

“Loeffler said the agency will refer appropriate cases to federal law enforcement for prosecution and repayment.”

Reading helps.

[bigdaddy45]

I guess the SBA has more authority than I thought.

[thinden]

“These individuals will be banned from all SBA loan programs, including disaster loans, going forward,” Loeffler wrote on X.

Loeffler said the agency will refer appropriate cases to federal law enforcement for prosecution and repayment.

“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,” she stated.

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so, where's the money the SBA loaned?
who's going to make the debt payments?
was this wide spread fraud, or isolated to specific lenders or borrower demographics

PS: SBA loans are backed by full faith & credit of US Gummit in the event of default

[HombreSecreto]

Deport Deport Deport

[Bernard]

The whole country has to jump through hoops to claim Child Tax Credits and Earned Income Credits, because of the high level of fraud going on with those things. Wait until the IRS starts really looking into the fraudulent claims there, and starts “suspending” those credits for an entire state of taxpayers. And don’t be near a fan, because it will really be hitting it then.

[blackberry1]

Let’s be clear. The PPP program was created and instituted under the first Trump administration. Hope he cleans things up!

[Señor Presidente]

My mother worked for a local tax filing company for 6 or 7 years in the early 2000s in NC. During that time she told me fraud was rampant with the child tax credits... multiple adults all claiming the same children, made-up children, etc.

Warms the heart when filing my taxes honestly. /s

[utax]

Social Security “trust fund reserves” run out in seven years but, rest easy, unlimited $$Billions available for grifters and fraudsters.

[Bernard]

Paid preparer compliance with those credits only got worse. When I stopped doing returns a few years ago, it took almost as long to fill out the checklists for EIC and CTC than it did to complete the rest of the return.

If it escalates anymore and people need to start providing copies of the evidence required for those credits, lots of people will complain even more. Some of them might even be willing to pay more tariffs if they don't have to file more paperwork!

[bobbo666]

“suspended , banned”

So, is this gonna be like every arsehole who publicly celebrated Kirk’s murder and was “suspended”? Then, quietly brought back in when everyone forgot about the murder.