SBA says it has suspended ‘6,900 Minnesota borrowers’ over suspected fraud

The Hill ^ | 01/01/26 | Filip Timotija

[MinorityRepublican]

Small Business Administration (SBA) Administrator Kelly Loeffler said Thursday night that her agency has suspended “6,900 Minnesota borrowers” over suspected fraudulent activity regarding COVID-era lending programs.

Loeffler said the SBA over the last week reviewed “thousands” of potentially “fraudulent” Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) payouts that were approved in Minnesota.

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

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

The suspension comes as the House Committee on Small Business started an investigation into “fraud and concealment” within the PPP and EIDL, both programs that were established during the pandemic.

Loeffler said on Monday that SBA will pause annual grants to Minnesota amid the ongoing probe into the COVID-era programs.

“SBA is pausing annual funding to Minnesota while we investigate $430 million in suspected PPP fraud across the state,” she said on X.

Last week, Loeffler sent a letter to Minnesota Gov. Tim Walz (D) saying that SBA would pause $5.5 million in annual funding “pending further review.”

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TOPICS: Chit/Chat; Conspiracy; Government
KEYWORDS: barbie; covid; covidrelief; dollfacescam; eidl; facialrecognition; fraud; loans; minnesota; ppp; sbaloans

[piasa]

hearings).

The “Doll Face” Scam: In 2021, fintech companies like Womply (which processed ~$3.5 billion in PPP loans) used AI-based facial recognition to verify applicant identities against uploaded IDs. Scammers exploited this by:

Photographing Barbie dolls, Ken dolls, wax figures, or mannequins holding real or forged IDs.

Uploading these images to trick the AI into approving fake businesses and identities.

This allowed them to secure loans for nonexistent entities, often tied to stolen Social Security numbers.

(This is why the blue cities and states didn’t want to go back to work or let Covid isolation end- doing everything remotely gave them endless opportunities to get around automated verification and game the system without even getting off the couch.

[Magnum44]

Good, I voted for this.

Now, more ICE please

[vivenne]

The question i have is who is normally overseeing anything in the government to prevent this from happening. It sounds like no one. It sounds like it is very easy to commit fraud with zero repercussions. Since that is likely, it would seem that our govt can’t handle managing anything so the logical conclusion is that we need to scale back the government to near nothing.

[Enterprise]

"The question i have is who is normally overseeing anything in the government to prevent this from happening."

Government DEI employees assisting DEI scammers. I wonder how many qualified people got turned down during the hiring process in favor of DEI scum.

[Dan Zachary]

we need to scale back the government to near nothing.

Which is what was intended by the constitution.

[Captainpaintball]

You know the names of the people borrowing? You also have their address. GRAB THE SUBHUMANS UP AND REMOVE THEM FROM THE COUNTRY.

[Right_Wing_Madman]

It sounds like it is very easy to commit fraud with zero repercussions.

The Fraud Economy.

Daniel Greenfield wrote this a few days ago: "Here’s how our economy currently works. We raise taxes on working Americans to give the money to Somali non-profits who claim to help kids and who then give the money to a Somali political candidate who threatened to blow up a school bus full of America kids for Somalia."

[MayflowerMadam]

This fraud was so blatant, it’s ridiculous that Loeffler’s department didn’t pick up on it long ago. Just looking at the quantity is suspicious.

They had to wait for a kid to come among and do the hard work.

[Right_Wing_Madman]

Which is what was intended by the constitution.

The federal government used to be small, but the 16th Amendment changed everything.

[vivenne]

Our govt is nothing more than one big money laundering ponzi scheme.

[ProtectOurFreedom]

“suspended

Yawn. I want to read indicted, perp walked, tried, convicted, incarcerated or (preferably) stripped of citizenship and deported.

I read it is hard to strip somebody of their naturalization unless they lied on their application. Does the application require you to attest to good moral and ethical character?

[jeffersondem]

“The federal government used to be small, but the 16th Amendment changed everything.”

The disaster at Appomattox changed everything.

[dayglored]

> You know the names of the people borrowing? You also have their address. GRAB THE SUBHUMANS UP AND REMOVE THEM FROM THE COUNTRY.

I basically agree with your comment, modulo the "subhuman" -- I don't consider them subhuman, because "human" has a terribly wide range that includes those cretins as well. But anyway....

I have a question regarding your tagline:

"America needs a Conservative DICTATOR if it hopes to survive."

I'm pretty sure the Constitution doesn't specify a dictator, conservative or otherwise, as part of the government. If in fact the only way out of the current mess is to employ a dictator, then what "survives" will not be America, but something else.

But perhaps I just don't understand what you have in mind. Could you explain how you envision your tagline working for the survival of America? Thanks in advance.

[Liz]

SBA chief Loeffler on social platform X:
<><>“our agency suspended 6,900 Minnesota borrowers amid suspected fraudulent activity.”
<><>wrt “thousands” of potentially “fraudulent” Minn Paycheck Protection Program (PPP)
<><>and Economic Injury Disaster Loan (EIDL) payouts.
<><>”the borrowers were approved for 7,900 PPP and EIDL tax dollar loans worth millions”

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Scumalis .....again.

[ProtectOurFreedom]

In my Post #12, I questioned if the application for citizenship requires that an applicant attest to good moral character and whether that could be a basis for denaturalization and deportation. Grok says:

The application for U.S. citizenship (naturalization) requires the applicant to demonstrate Good Moral Character (GMC). As of January 2026, recent USCIS policy updates (including a 2025 memorandum) have emphasized a more holistic evaluation, requiring affirmative evidence of positive attributes and rehabilitation where applicable, in addition to disclosing potentially adverse conduct

Key Aspects

• Legal Requirement: Under the Immigration and Nationality Act (INA) Section 316(a)(3), an applicant must show they "have been and still are a person of good moral character" during the statutory period (typically 5 years prior to filing Form N-400, or 3 years if married to a U.S. citizen), continuing up to the Oath of Allegiance.
• On Form N-400: The application includes extensive questions about criminal history, arrests, taxes, affiliations, false claims, and other behaviors that could impact GMC. By signing the form under penalty of perjury, the applicant certifies the truthfulness of their answers, which USCIS uses to evaluate GMC. Answers must be supported by documentation for any relevant incidents.
• Evaluation by USCIS: GMC is assessed holistically based on responses, background checks, interview, and evidence. Certain acts create permanent or conditional bars; others may require evidence of rehabilitation. Recent policies emphasize positive contributions (e.g., community involvement, tax compliance) alongside absence of disqualifying conduct.
• Oath of Allegiance: At the ceremony, the applicant pledges loyalty to the U.S. Constitution and laws, but it does not explicitly mention "good moral character" or "integrity."

While there is no single checkbox or phrase requiring the applicant to self-attest to GMC or integrity, the process effectively requires proving it through disclosures, evidence, and sworn statements. Failure to demonstrate GMC can lead to denial. For official details, refer to USCIS resources like the Policy Manual (Volume 12, Part F) and Form N-400 instructions.

Lying about facts relevant to good moral character (GMC) on a naturalization application or during the interview can be grounds for denaturalization, and successful denaturalization typically leads to deportation (removal proceedings).

Grounds for Denaturalization

U.S. law (8 U.S.C. § 1451) provides two primary bases for revoking naturalized citizenship in civil proceedings:

• Illegal procurement: The person was statutorily ineligible for naturalization at the time it was granted (e.g., lacked GMC due to undisclosed disqualifying conduct, such as certain crimes).
• Procurement by concealment of a material fact or willful misrepresentation: The person willfully hid or misrepresented a fact that was material (had a tendency to influence the naturalization decision), and this procured citizenship.

Lying about GMC-related matters (e.g., denying arrests, crimes, or other conduct that could bar or adversely affect a GMC finding) often falls under one or both:

• If the hidden fact disqualified the applicant from GMC (or would have led to denial), citizenship was illegally procured—even without intent to deceive.
• If the lie itself was willful and material, it qualifies as concealment/misrepresentation (per Kungys v. United States, 485 U.S. 759 (1988), and USCIS Policy Manual, Volume 12, Part L, Chapter 2).

The Supreme Court in Maslenjak v. United States (582 U.S. 335 (2017)) clarified that for fraud-based cases, the government must prove the misrepresentation was material and causally linked to obtaining citizenship (e.g., it would have prompted further investigation revealing disqualifying facts). Minor or immaterial lies do not suffice.

Denaturalization requires "clear, unequivocal, and convincing evidence" in civil proceedings (initiated by the Department of Justice) or a criminal conviction under 18 U.S.C. § 1425 (procuring naturalization contrary to law). There is no statute of limitations.

Consequences: Deportation

Upon denaturalization, the person reverts to their prior immigration status (usually lawful permanent resident, but often none if eligibility was fraudulent). They become subject to removal (deportation) proceedings, especially if the underlying conduct renders them deportable (e.g., fraud, certain crimes). Denaturalization is retroactive to the date of naturalization.

While not every misstatement leads to revocation (it must meet materiality and other thresholds), lying about GMC-disqualifying facts is a common basis for denaturalization actions, as seen in cases involving undisclosed crimes or misconduct. For current guidance, see USCIS Policy Manual (Volume 12, Part L) and DOJ practices.

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I'd wager you would not have to dig very deep to find many Scamalis lied about GMC in their application process.

[Governor Dinwiddie]

If a White person had tried the same thing, they would never have made it
past step one. Application straight to the round file cabinet. Bidenomics.

[dznutz]

Suspend? How about arrest?

[House Atreides]

“ You know the names of the people borrowing? You also have their address. GRAB THE SUBHUMANS UP AND REMOVE THEM FROM THE COUNTRY.”
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And do not forget to ALSO deport their immediate families PLUS ALL THE CHAIN MIGRATION SCUM THEY DRAGGED IN!

[Secret Agent Man]

Truly needs to happen in all 50 states and DC