Story perspectives

SBA Suspends 6,900 Minnesota Borrowers Over PPP Fraud

1/2/2026

41 5

Summary

Story summary

On January 2, 2026, U.S. Small Business Administrator Kelly Loeffler announced the suspension of 6,900 Minnesota borrowers due to suspected fraud involving Paycheck Protection Program loans totaling approximately $400 million.
Loeffler criticized Minnesota's oversight of taxpayer funds and suspended $5.5 million in annual funding to the state.
The SBA will refer cases for prosecution and repayment.
The U.S. House Oversight Committee invited Minnesota Governor Tim Walz and Attorney General Keith Ellison to testify on February 10, with a related hearing scheduled for January 7.

1 of 1

Story summary

On January 2, 2026, U.S. Small Business Administrator Kelly Loeffler announced the suspension of 6,900 Minnesota borrowers due to suspected fraud involving Paycheck Protection Program loans totaling approximately $400 million.
Loeffler criticized Minnesota's oversight of taxpayer funds and suspended $5.5 million in annual funding to the state.
The SBA will refer cases for prosecution and repayment.
The U.S. House Oversight Committee invited Minnesota Governor Tim Walz and Attorney General Keith Ellison to testify on February 10, with a related hearing scheduled for January 7.