- The Small Business Administration (SBA) has suspended nearly 7,000 Minnesota borrowers after reviewing pandemic-era Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans for suspected fraud.
- The suspended borrowers received about 7,900 loans totaling roughly $400 million and are now barred from all future SBA loan programs.
- SBA Administrator Kelly Loeffler said cases will be referred to federal law enforcement for possible prosecution and recovery of funds.
- The SBA has also halted annual funding to Minnesota while investigating reports of more than $100 million and up to $430 million in suspected PPP fraud statewide.
- Federal authorities have additionally suspended certain child care funds to Minnesota, signaling an expanded crackdown on alleged misuse of pandemic relief money.
The U.S. Small Business Administration (SBA) has suspended thousands of Minnesota borrowers after reviewing pandemic-era loans for possible fraud.
According to BrightU.AI‘s Enoch, SBA offered pandemic-era loans through two primary programs: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These loans were designed to provide financial relief to small businesses affected by the COVID-19 pandemic. The PPP offered forgivable loans to maintain payroll and cover certain expenses, while EIDL provided low-interest loans to cover working capital and normal operating expenses.
However, they have faced widespread scrutiny nationwide over improper payments and fraud.
In a post on X, formerly known as Twitter, SBA Administrator Kelly Loeffler said the agency reviewed thousands of PPP and EIDL approvals tied to Minnesota and took action against nearly 7,000 borrowers.
“Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota,” Loeffler posted Thursday, Jan. 1. “Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity.”
Loeffler revealed that the suspended borrowers were approved for a combined 7,900 PPP and EIDL loans totaling approximately $400 million. She said those individuals will be banned from all SBA loan programs moving forward, including disaster assistance loans. Loeffler added that the agency plans to refer cases to federal law enforcement when appropriate for potential prosecution and recovery of funds.
“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,” she wrote.
SBA halts annual funding to Minnesota
The announcement follows the halting of the annual funding to the state of Minnesota amid reports alleging more than $100 million in fraud.
In a separate post on X, Loeffler said the agency is pausing funding while it investigates suspected fraud involving PPP loans statewide. The announcement was posted after independent journalist Nick Shirley claimed in a 42-minute YouTube video that he uncovered more than $110 million in alleged fraud in a single day after visiting multiple daycare facilities across Minnesota.
“SBA is pausing annual funding to Minnesota while we investigate $430 million in suspected PPP fraud across the state,” Loeffler posted Monday, Dec. 29. “This Admin will not continue to hand out blank checks to fraudsters – and we will not rest until we clean up the criminal networks that have been stealing from American taxpayers.”
Furthermore, the administration has announced it is suspending certain federal child care funds to Minnesota following the fraud accusations, further escalating the federal response.
Watch the Dec. 30 episode of “Brighteon Broadcast News” as Mike Adams, the Health Ranger, talks about the widespread government grant fraud.
This video is from the Health Ranger Report channel on Brighteon.com.
Sources include:
NewsNationNow.com 1
X.com 1
NewsNationNow.com 2
YouTube.com
X.com 2
BrightU.ai
Brighteon.com
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