{"id":2528510,"date":"2026-01-02T11:18:59","date_gmt":"2026-01-02T16:18:59","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/more-minnesota-madness-sba-now-stepping-in-to-block-borrowers-over-suspected-fraud\/"},"modified":"2026-01-02T11:23:09","modified_gmt":"2026-01-02T16:23:09","slug":"more-minnesota-madness-sba-now-stepping-in-to-block-borrowers-over-suspected-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/more-minnesota-madness-sba-now-stepping-in-to-block-borrowers-over-suspected-fraud\/","title":{"rendered":"More Minnesota Madness: SBA Now Stepping In to Block Borrowers Over Suspected Fraud"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmore-minnesota-madness-sba-now-stepping-in-to-block-borrowers-over-suspected-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2528510&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Overview &#8211; The Small Business Governance, led by Kelly Loeffler, has suspended 6,900 Minnesota borrowers amid an investigation into suspected pandemic-era PPP and EIDL loan fraud. Those borrowers were approved for about 7,900 loans worth roughly $400 million; they are now banned from SBA programs and will be referred to federal law enforcement where appropriate. The agency also froze more than $5.5 million in annual support to SBA resource partners in Minnesota while it reviews alleged widespread fraud &#8211; allegations that include sham day-care claims and other schemes. The move follows broader scrutiny of the state under gov. Tim Walz, <a href=\"https:\/\/amzn.to\/3YuVZYV\" >including previous fraud-related arrests<\/a> and political controversy, and signals a large-scale federal effort to recover funds and pursue prosecutions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>What in the world is going on in Minnesota?<\/p>\n<p>Whatever the truth of the matter is, it&rsquo;s got the full attention of President Donald Trump&rsquo;s administration.<\/p>\n<p>Late Thursday, the Small Business Administration announced a blistering response to &ldquo;thousands of potentially fraudulent pandemic-era PPP [Paycheck Protection Program] and EIDL [Economic Injury Disaster Loan] loans approved in Minnesota.&rdquo;<\/p>\n<p>SBA Administrator Kelly Loeffler took to X to announce the news:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota.<\/p>\n<p>Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity. In total, these borrowers were approved for&hellip;<\/p>\n<p>&mdash; Kelly Loeffler (@SBA_Kelly) <a href=\"https:\/\/twitter.com\/SBA_Kelly\/status\/2006893291241980325?\">January 2, 2026<\/a><\/p>\n<\/blockquote>\n<p> <script type=\"text\/javascript\"> \t\t\tif ( getCookie( \"ff_subbed\" ) ) { \t\t\t\tdocument.getElementById(\"stnvideo\").remove() \t\t\t} else { \t\t\t\tdocument.addEventListener(\"DOMContentLoaded\", function() { \t\t\t\t\tfunction loadScript(src) { \t\t\t\t\t\tconst script=document.createElement(\"script\"); \t\t\t\t\t\tscript.src=src; \t\t\t\t\t\tscript.async=true; \t\t\t\t\t\tdocument.body.appendChild(script); \t\t\t\t\t} \t\t\t\t\tfunction findPreviousParagraph(selector, x) { \t\t\t\t\t\tconst targetElement=document.querySelector(selector); \t\t\t\t\t\tif (!targetElement) { \t\t\t\t\t\t\tconsole.warn(\"Target element not found.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\t\/\/ Get all <\/p>\n<p> elements in order as they appear in the document \t\t\t\t\t\tlet paragraphs=Array.from(document.querySelectorAll(\"p\"));  \t\t\t\t\t\t\/\/ Find the index of the last <\/p>\n<p> before the target element \t\t\t\t\t\tlet targetIndex=paragraphs.findIndex(p=> p.compareDocumentPosition(targetElement) & Node.DOCUMENT_POSITION_PRECEDING);  \t\t\t\t\t\tif (targetIndex===-1 || targetIndex <x) { \t\t\t\t\t\t\tconsole.warn(\"Not enough paragraphs before the target element.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\treturn paragraphs[targetIndex - x]; \t\t\t\t\t}  \t\t\t\t\t\/\/ Set up IntersectionObserver \t\t\t\t\tfunction observeElement(element) { \t\t\t\t\t\tif (!element) return;  \t\t\t\t\t\tconst observer=new IntersectionObserver( \t\t\t\t\t\t\t(entries)=> { \t\t\t\t\t\t\t\tentries.forEach(entry=> { \t\t\t\t\t\t\t\t\tif (entry.isIntersecting) { \t\t\t\t\t\t\t\t\t\tconsole.log(\"Paragraph is now visible:\", entry.target.textContent.trim()); \t\t\t\t\t\t\t\t\t\tloadScript(\"https:\/\/embed.sendtonews.com\/player3\/embedcode.js?fk=s28Az7AY\"); \t\t\t\t\t\t\t\t\t\tobserver.disconnect(); \t\t\t\t\t\t\t\t\t} \t\t\t\t\t\t\t\t}); \t\t\t\t\t\t\t}, \t\t\t\t\t\t\t{ threshold: 0.5 } \/\/ Adjust threshold as needed \t\t\t\t\t\t);  \t\t\t\t\t\tobserver.observe(element); \t\t\t\t\t}  \t\t\t\t\t\/\/ Find the 1st paragraph before #stnvideo and observe it \t\t\t\t\tlet paragraphToObserve=findPreviousParagraph(\"#stnvideo\", 2); \t\t\t\t\tobserveElement(paragraphToObserve); \t\t\t\t}); \t\t\t} \t\t<\/script> <\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&ldquo;Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity,&rdquo; Loeffler posted.<\/p>\n<p>&ldquo;In total, these borrowers were approved for 7,900 PPP and EIDL loans worth approximately $400M.<\/p>\n<p>&ldquo;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.<\/p>\n<p>&ldquo;After years, the American people will finally begin to see the criminals who stole from law-abiding taxpayers held accountable &ndash; and this is just the first state.&rdquo;<\/p>\n<p>This announcement comes amid larger scrutiny targeting the Gopher State, as Minnesota has been embroiled in <a href=\"https:\/\/www.westernjournal.com\/breaking-doj-announces-98-total-arrests-minnesota-fraud-case-85-somali-descent\/\" target=\"_blank\" rel=\"noopener\">fraud scandals<\/a>&nbsp;under the leadership of Democratic Gov. Tim Walz.<\/p>\n<p>Walz, who is facing a congressional hearing over his purported malfeasance, had <a href=\"https:\/\/www.westernjournal.com\/small-business-administration-blocks-grants-minnesota-amid-shocking-fraud-investigation\/\" target=\"_blank\" rel=\"noopener\">already drawn the ire<\/a> of Loeffler and the SBA earlier this week.<\/p>\n<p>&ldquo;The scope of this international scam is still unknown, likely in the billions,&rdquo; Loeffler told conservative influencer Benny Johnson over earlier various allegations of fraud, including day cares that were collecting funds despite an alleged lack of children and services provided.<\/p>\n<p>Loeffler continued, &ldquo;Pending further review, SBA is freezing all <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">grant funding<\/a> to the state in order to stop the rampant waste of taxpayer dollars and uncover the full depth of fraud.&rdquo;<\/p>\n<p>According to <a href=\"https:\/\/www.foxnews.com\/politics\/sba-suspends-nearly-7000-minnesota-borrowers-over-suspected-400m-pandemic-loan-fraud\" target=\"_blank\" rel=\"noopener\">Fox News<\/a>, Loeffler already sent a scathing letter to Walz.<\/p>\n<p>She wrote, &ldquo;I am notifying you 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.&rdquo;<\/p>\n<p>With hundreds of millions in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/electric-cars-are-an-expensive-scam\/\" title=\"Electric cars are costly frauds.\">taxpayer-backed loans<\/a> now under suspicion, thousands of borrowers suspended, and grant funding frozen statewide, the Trump administration is signaling that Minnesota&rsquo;s fraud problem is no longer being treated as an isolated lapse &mdash; but as a systemic failure demanding accountability.<\/p>\n<p>Whether this marks the beginning of a broader reckoning or a political and legal showdown with Walz, one thing is clear: Minnesota is no longer flying under Washington&rsquo;s radar.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> \t\t\t\t\t<input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\"> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> \t\t<script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! 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