Overview
- Agency officials say the suspended borrowers were tied to about 7,900 PPP and EIDL loans totaling roughly $400 million.
- Those flagged are barred from future SBA programs, with case files to be sent to federal law enforcement for potential prosecution and repayment.
- Days earlier, the SBA paused more than $5.5 million in annual support to Minnesota resource partners, and the agency said at least $2.5 million in PPP/EIDL funds linked to a Minneapolis Somali fraud scheme.
- Federal actions extend beyond the SBA as HHS froze child-care payments to Minnesota and the FBI deployed personnel to pursue pandemic-era fraud investigations.
- SBA Administrator Kelly Loeffler said Minnesota is the starting point for a state-by-state review, while congressional oversight hearings and state audits continue.