Trump admin BANS 6,900 Minnesota SBA borrowers over suspected PPP loan fraud—will now go 'state by state'

Small Business Administration Administrator Kelly Loeffler has said that the SBA has suspended 6,900 Minnesota borrowers after the agency said it has discovered widespread suspected fraud in Minnesota stemming from the Covid-era Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) amounting to at least $400 million.

"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," Loeffler said in a post on X.

"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," she added.

During an appearance on Fox News, Loeffler said that the SBA, after it has seen the method as well as the depth of the fraud in Minnesota, will hold other states accountable. "We're going to do that state by state. We're going to make sure now that we understand the breadth and the depth and the method of these crimes, that we hold more states accountable," she said.

In a letter on Tuesday, Loeffler also said that the agency would be stopping over $5.5 million from going to Minnesota for annual support "until further notice."

This all comes on the heels of a viral exposé from independent reporter Nick Shirley, who went around Minnesota with a local by the name of David, identifying alleged fraud taking place at Minnesota daycare centers, many of which were being run by Somalis. The Trump administration also stopped funding going to Minnesota, which has been linked to the child care centers.