The Trump administration’s Small Business Administration announced Thursday that it has suspended 6,900 Minnesota borrowers after uncovering a widespread suspected fraud tied to COVID-19 relief programs.
According to the agency, an internal review of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals in Minnesota revealed nearly $400 million in potentially fraudulent loans—money that was supposed to keep small businesses afloat and American workers employed during the pandemic.
SBA Administrator Kelly Loeffler said the agency reviewed thousands of pandemic-era loans approved in Minnesota and identified 7,900 PPP and EIDL loans connected to the suspended borrowers.
In a blunt statement posted to X, Loeffler laid out the scope of the action:
“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 7,900 PPP and EIDL loans worth approximately $400M.
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.
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.”
Hellbound and Down 