The U.S. Small Business Administration (SBA) is suspending almost 7,000 Minnesota borrowers over “suspected fraudulent activity” and blocking them from all other loan programs.
The announcement was made in a Thursday night post on X by SBA Administrator Kelly Loeffler.
The agency identified the borrowers during a review of potentially fraudulent pandemic-era loans that took place over the last week, she said. The Trump administration has stepped up its focus on Minnesota over the past week following a viral video from a right-wing influencer posted Dec. 26.
No charges have been announced, and Loeffler said the SBA would refer cases to law enforcement “where appropriate.”
The review focused on two loan programs: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan. The SBA stopped accepting PPP loan applications in May 2021.
Loeffler said the 6,900 Minnesota borrowers suspected of fraudulent activity were approved for a total of 7,900 loans, worth $400 million, between the two programs.
“These individuals will be banned from all SBA loan programs, including disaster loans, going forward,” Loeffler said.
The SBA’s announcement comes as President Donald Trump has increasingly targeted Minnesota’s recent fraud scandals, its Somali residents and Gov. Tim Walz in recent months.
