SBA halts grants to Minnesota in wake of fraud scandal [View all]
Source: The Hill
12/29/25 5:37 PM ET
Small Business Administration (SBA) head Kelly Loeffler said Monday that her department is halting annual grants to Minnesota, amid an investigation into alleged fraud in COVID-era lending programs.
Loeffler said on the social platform X that the SBA is pausing yearly funding to Minnesota “while we investigate $430 million in suspected [Paycheck Protection Program] fraud across the state.”
The Paycheck Protection Program (PPP) was established by the 2020 CARES Act, which passed Congress and was signed into law by President Trump during the COVID-19 pandemic.
The House Committee on Small Business has launched a probe into “fraud and concealment” within the PPP and the Economic Injury Disaster Loan (EIDL) program, also formed during the pandemic. Loeffler sent a letter last week to Minnesota Gov. Tim Walz (D) outlining at least $2.5 million in PPP and EIDL loans sent to individuals indicted as part of a wide-ranging investigation into fraud involving Minnesota’s social services programs.
Read more: https://thehill.com/homenews/state-watch/5665860-sba-halts-grants-minnesota-fraud/
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