Trump Admin Announces It Has Suspended Thousands Of ‘Minnesota Borrowers’ Over Suspected Fraud
Small Business Administration (SBA) Administrator Kelly Loeffler announced Thursday evening that her agency was suspending thousands of “Minnesota borrowers” due to “alleged fraudulent activity” involving COVID-era loan programs.
Loeffler wrote in an article She said state “borrowers” suspected of fraud obtained 7,900 PPP and EIDL loans totaling $400 million. (RELATED: Trey Gowdy Explains What Saved Tim Walz From ‘Running for His Life’ to Minnesota Taxpayers)
“In total, these borrowers obtained 7,900 PPP and EIDL loans worth approximately $400 million,” Loeffler wrote in the social media post. “These individuals will now be banned from all SBA loan programs, including disaster loans. We will also refer each case, if appropriate, to federal law enforcement for prosecution and reimbursement.
“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,” Loeffler continued.
Over the past week, the SBA has reviewed thousands of potentially fraudulent PPP and EIDL loans approved in Minnesota during the pandemic.
Today, our agency took action to suspend 6,900 Minnesota borrowers due to suspected fraudulent activity. In total, these borrowers were approved for…
-Kelly Loeffler (@SBA_Kelly) January 2, 2026
Minnesota Democratic Governor Tim Walz’s administration has recently been grappling with fraud allegations linked to Somali-led operations in the Minneapolis-St. Paul district. Loeffler sent a letter to Walz on December 23 saying his agency will “stop” more than $5.5 million in annual funding to Minnesota “until further notice,” Fox News first reported.
Today, I informed Governor Tim Walz that the SBA is suspending its $5.5 million in annual funding to Minnesota pending further review.
This action follows alarming findings: Those charged in the billion-dollar Somalia fraud scheme also received at least $3 million in PPP loans, and the SBA…
-Kelly Loeffler (@SBA_Kelly) December 23, 2025
A variety of pandemic era relief programs, including the PPP, have notably been the target of fraudulent activity, according to the Daily Caller reported in October 2024. Three Chinese companies have agreed to distribute $7.3 million to resolve allegations that they submitted false statements to secure PPP loans, the Department of Justice (DOJ) announced on December 16.
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