SBA Suspends 6,900 Minnesota Borrowers Over Potential COVID-19 Loan Fraud

SBA Administrator Kelly Loeffler said the borrowers were approved for 7,900 pandemic relief loans worth about $400 million.

Small Business Administration chief Kelly Loeffler speaks during a press conference in Washington on Oct. 27, 2025. Madalina Kilroy/The Epoch Times

The Small Business Administration (SBA) has suspended 6,900 Minnesota borrowers amid suspected fraudulent activity in the state’s pandemic-era loan programs, SBA Administrator Kelly Loeffler said on Jan. 1.

In a post on X, Loeffler said the SBA took the action after reviewing thousands of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals in Minnesota during the COVID-19 pandemic.