(NewsNation) — The Small Business Administration has reviewed thousands of possibly fraudulent loans approved in Minnesota.
According to Small Business Administrator Kelly Loeffler, almost 7,000 borrowers in Minnesota have been suspended for suspected fraudulent activities.
“Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota,” Loeffler said Thursday on X.
“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.”
On Monday, Loeffler announced halting annual funding to the state of Minnesota amid a report of over $100 million in fraud in the state.
The Trump administration has also announced it is suspending certain child care funds to the state after the accusations of fraud.
