Home / Business and Economy / Minnesota Loan Fraud: $400M Suspected, 6,900 Borrowers Banned
Minnesota Loan Fraud: $400M Suspected, 6,900 Borrowers Banned
3 Jan
Summary
- Approximately $400 million in suspected fraud was found.
- 6,900 Minnesota borrowers have been suspended and banned.
- Over $5.5 million in federal funding to resource partners was halted.
The Small Business Administration has taken decisive action against suspected pandemic-era loan fraud in Minnesota. Approximately 6,900 borrowers have been suspended and banned from future SBA programs following the discovery of nearly $400 million in potentially fraudulent Paycheck Protection Program and Economic Injury Disaster Loan funds.
SBA Administrator Kelly Loeffler announced that over $5.5 million in federal funding allocated to Minnesota resource partners has also been halted as part of this extensive probe. Loeffler described the scale of the fraud as "staggering" and indicated that relevant cases will be referred to federal prosecutors for further action.
This significant crackdown occurs while federal and state authorities continue their scrutiny of pandemic relief efforts. Minnesota officials, including Governor Tim Walz, are reportedly facing mounting investigations into widespread fraud that has permeated various assistance programs across the state.
