The U.S. Small Business Administration (SBA) has suspended about 6,900 Minnesota borrowers after identifying nearly $400 million in suspected fraudulent PPP and EIDL loans issued during the COVID-19 pandemic.
SBA Administrator Kelly Loeffler said those involved will be barred from future SBA programs, with cases referred for prosecution and repayment.
The SBA also halted over $5.5 million in annual federal support to Minnesota SBA resource partners and linked at least $2.5 million in loans to a Somali-based fraud scheme in Minneapolis.
Loeffler accused Minnesota officials of failing to act, noting that about $430 million tied to roughly 13,000 loans was flagged as potentially fraudulent but still funded, with some later forgiven
