More charges of deceitful exploitation of federal government programs continue to emerge in Minnesota with the Small Business Administration (SBA) announcing Thursday it has suspended 6,900 borrowers after finding widespread suspected fraud in pandemic-era loans.
SBA Administrator Kelly Loeffler said a review of thousands of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans approved in Minnesota revealed nearly $400 million in potential fraud.
“In total, these borrowers were approved for 7900 PPP and EIDL loans worth approximately $400M,” she wrote on X on Thursday.
“These individuals will be banned from all SBA loan programs, including disaster loans, going forward,” Loeffler continued. “We will also refer every case, where appropriate, to federal law enforcement for prosecution and repayment.”
The announcement comes as Minnesota Gov. Tim Walz (D) and his administration face revelations of billions of dollars in social services fraud, substantial amounts of it allegedly connected to the state’s large Somali community, and the reports coming almost daily.
The alleged fraud covers a range of human services programs, including most recently a report of federal funds tapped for childcare centers that allegedly care for no kids.
As Breitbart News reported, Attorney General Pam Bondi announced Monday that 85 Somalian nationals have been charged regarding ongoing fraud taking place in Minnesota, with “more prosecutions coming.”
On Wednesday, Governor Walz, also the Democrat candidate for vice president in 2024, accused President Donald Trump of using the issue of alleged Somali fraud as “an excuse to hurt working Minnesotans.”
WATCH — Mehek Cooke: Tim Walz Needs to Resign over Massive Minnesota Fraud:
On December 23, Loeffler sent a letter to Walz informing him that “effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support,” Fox News reported.
According to Fox, “Loeffler told Walz that $430 million in PPP funds tied to roughly 13,000 loans were flagged as potentially fraudulent but were still funded anyway, including some that were forgiven during the Biden administration.”
“The volume and concentration of potential fraud is staggering, matched in its egregiousness only by your response to those who attempted to stop it,” she wrote.
In her X post on New Year’s Day, Loeffler said the fraud was not limited to Minnesota.
“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 wrote.
Contributor Lowell Cauffiel is the author of the New York Times best seller House of Secrets and nine other crime novels and nonfiction titles. See lowellcauffiel.com for more.
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