U.S. Small Business Administrator Kelly Loeffler announced Thursday that her agency has suspended 6,900 Minnesota borrowers over suspected fraud.
“In total, these borrowers were approved for 7,900 [Paycheck Protection Program] and [Economic Injury Disaster] loans worth approximately $400M,” said Loeffler, whose agency has reviewed thousands of “potentially fraudulent” Minnesota loans over the past week.
“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,” wrote Loeffler.
“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 added.
In a follow-up post, Loeffler described the suspended Minnesota borrowers as suspected fraudsters.
“It’s why we’re investigating every socialist welfare state where criminal networks thrived at the expense of law-abiding job creators and taxpayers,” she wrote.
The suspected MN fraudsters that SBA suspended yesterday took out nearly 8,000 loans totaling $400 million during the pandemic.
It’s why we’re investigating every socialist welfare state where criminal networks thrived at the expense of law-abiding job creators and taxpayers. pic.twitter.com/bZgEEsp6WV
— Kelly Loeffler (@SBA_Kelly) January 2, 2026
Loeffler announced last week that the SBA halted $5.5 million in annual funding to Minnesota amid widespread national scrutiny of the state’s fraud crisis.
“Under your leadership, Minnesota failed to safeguard taxpayer dollars, and SBA will not continue to place federal resources at risk in a state where oversight measures are ignored and accountability is abandoned,” she wrote in a letter to Gov. Tim Walz.
The U.S. House Oversight Committee said this week that it has invited Gov. Walz and Attorney General Keith Ellison to testify before Congress Feb. 10 as the congressional panel investigates fraud in Minnesota.
State Reps. Kristin Robbins, Walter Hudson, and Marion Rarick will participate in a Jan. 7 Oversight Committee hearing on the topic.
Anthony Gockowski
Anthony Gockowski is Editor-in-Chief of Alpha News. He previously worked as an editor for The Minnesota Sun and Campus Reform, and wrote for the Daily Caller.
