The Small Business Administration is coming down hard on Minnesota companies suspected of fraud in the Paycheck Protection Program and Economic Injury Disaster Loan program, according to SBA Administrator Kelly Loeffler.
“Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota,” she posted Thursday on social media platform X.
“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,” she wrote.
Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans 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…
— Kelly Loeffler (@SBA_Kelly) January 2, 2026
Minnesota has been a hotbed of fraud allegations that have led to the indictment of almost 100 people.
Loeffler said the SBA’s actions did not end there.
“These individuals will 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,” she said.
“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,” the post said.
Last week, Loeffler said the state was put in time-out over how public cash has been tossed about in Minnesota.
“Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review,” she posted on X.
“This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP loans, and SBA has since identified 13,600 additional PPP loans in Minnesota — totaling $430 million — suspected as fraudulent,” she wrote.
“With dozens of investigations underway, the conclusion is unavoidable: Minnesota cannot be trusted to administer federal tax dollars. Its socialist welfare system has enabled fraud at industrial scale, at the expense of honest Americans — and these are the consequences,” she posted.
Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review.
This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP loans, and SBA…
— Kelly Loeffler (@SBA_Kelly) December 23, 2025
A report from CBS News indicated that in 2023, the Small Business Administration’s own review of the two pandemic-era programs found that more than $200 billion in “potentially fraudulent” EIDL and PPP loans had been issued.
The total comes to about 17 percent of all the money that flowed to help businesses stay alive during the pandemic.
Both programs are the subject of an investigation by the House Committee on Small Business, according to The Hill.
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