Summary
Minnesota suspended thousands of borrowers due to suspected fraud involving loans from federal programs. The Small Business Administration (SBA) reviewed these loans and found potential fraud, leading to suspending 6,900 borrowers. Federal law enforcement continues to investigate, with some cases referred for legal action.
Key Facts
- The SBA reviewed loans in Minnesota, uncovering potential fraud in 6,900 borrowers.
- These loans included Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
- Nearly $400 million in loans were tied to these potentially fraudulent activities.
- The SBA will refer appropriate cases to federal law enforcement for legal action.
- Allegations of fraud add to existing issues in Minnesota, where previous fraud cases have already led to prosecutions.
- Federal investigations in Minnesota are expanding, with the FBI involved.
- The SBA paused $5.5 million in annual funding to Minnesota amid ongoing investigations.
- A video alleging misuse of taxpayer funds in Minnesota day care centers has garnered major public and political attention.
