Small Business Administration Cuts Off All Minnesota Grants Over Somali Fraud

Authored by Catherine Salgado via PJ Media,

The Small Business Administration (SBA) is clawing back all grants to the state of Minnesota over its gargantuan fraud scandal.

SBA Administrator Kelly Loeffler confirmed the move on Dec. 28, saying she was “disgusted and sickened” by the Minnesota government covering up for out-of-control fraud. SBA was able to identify half a billion dollars’ worth of fraud just in the first few days of the federal entity investigating Minnesota.

Loeffler said in comments to Benny Johnson, which she reposted on X, “The scope of this international scam is still unknown, likely in the billions. Pending further review, SBA is freezing all grant funding to the state in order to stop the rampant waste of taxpayer dollars and uncover the full depth of fraud.” The fraud is particularly tied to Somali “migrants,” hence Democrats’ determination to ignore it. 

Loeffler had previously said she would be suspending $5.5 million in SBA funding for Minnesota, but her comments to Johnson confirmed that the suspension involves all SBA funds to the state. “Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review,” she posted on Dec. 23.

Loeffler added, “This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP loans, and SBA has since identified 13,600 additional PPP loans in Minnesota — totaling $430 million — suspected as fraudulent.”

Independent journalist Nick Shirley blew the lid off the Somali fraud apparatus in Minnesota, with an exposé that has gone viral on social media and even been picked up by Fox News.

Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable

We ALL… pic.twitter.com/E3Penx2o7a

— Nick shirley (@nickshirleyy) December 26, 2025

Because Gov. Tim Walz (D-Minn.) has facilitated fraud and refused to enforce small business laws, SBA under Loeffler made the decision to yank back funding. Why should American taxpayers reward illegal behavior in Minnesota?

SBA plans to investigate and hold to account “state officials” who built an “industrial-scale crime ring to rip off hardworking Americans,” Loeffler told Johnson.

This is certainly not the first time the Trump administration has taken action over the ever-deepening fraud scandal in Minnesota, which has been a topic of controversy and disgust for weeks. Last month, Donald Trump announced on Truth Social:

Minnesota, under Governor Waltz, [sic] is a hub of fraudulent money laundering activity. I am, as President of the United States, hereby terminating, effective immediately, the Temporary Protected Status (TPS Program) for Somalis in Minnesota. Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from. It’s OVER!

Democrats, in their usual fashion, have tried to make the victimizers the victims, moaning about racism, etc. But perhaps that is mainly because so many Democrat officials are complicit in the fraud.