SBA Suspends 7,000 Minnesota Borrowers Over “Suspected Fraudulent Activity”

Small Business Administration Administrator Kelly Loeffler announced late Thursday that nearly 7,000 Minnesota borrowers have been suspended over suspected fraud. The move follows a bombshell report last week by citizen journalist Nick Shirley, who detailed alleged large-scale fraud tied to daycare centers operated by Somali-linked networks. The revelations sparked national outrage, with many Americans angered that their taxes are funding what appears to be industrial-scale migrant welfare fraud.

“Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota,” Loeffler said Thursday on X.

She continued:

Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity. In total, these borrowers were approved for 7,900 PPP and EIDL loans worth approximately $400M. These individuals will be banned from all SBA loan programs, including disaster loans, going forward.

We will also refer every case, where appropriate, to federal law enforcement for prosecution and repayment.

After years, the American people will finally begin to see the criminals who stole from law-abiding taxpayers held accountable, and this is just the first state.

Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota.

Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity. In total, these borrowers were approved for…

— Kelly Loeffler (@SBA_Kelly) January 2, 2026

Early in December, Loeffler announced a full investigation into “the network of Somali organizations and executives” implicated in Covid-era fraud schemes in the corrupt Democratic-run state.

Tim Walz’s state has been in the spotlight over allegations of industrial-scale fraud, with US Attorney Joe Thompson recently warning that the total could top $9 billion across 14 Medicaid programs.

The scandal began at nonprofit Feeding Our Future, based in Minnesota, which was accused of stealing from the Federal Child Nutrition Program by falsely claiming to distribute meals during the Covid pandemic.

A Christopher F. Rufo report alleged that some of the welfare fraud was funneled into an overseas terrorist organization…

Shirley’s bombshell report of what appeared to be “empty” day care and autism centers run by Somali operators only suggests possible front companies to maximize extraction from taxpayer programs while minimizing detection.

In response, as we coined “The Shirley Effect,” citizen journalists have flooded Democratic-run states and cities to search for fraud, and what they have found in just one week is deeply alarming (read here).

The Somali “daycare manager” appears to be wearing $2,500 glasses. https://t.co/MeIx3wDQPu pic.twitter.com/1nFylQJNkL

— Nathan Hansen (@nathanmhansen) December 31, 2025

By late week, the Department of Health and Human Services announced that it had frozen federal child care payments nationwide, citing mounting reports of suspected fraud.

“MN mom” panics after seeing “fraud is bad” in her script pic.twitter.com/EaV2Ptjssh

— End Wokeness (@EndWokeness) December 31, 2025

The nation has been shocked this week, not just because corporate media tried to downplay and discredit Shirley’s report, which led to CBS panicking by late week, but also because average folks, swamped by taxes, overregulation, and elevated costs of living, all leftovers from disastrous “Bidenomics,” now see their tax dollars funding the lives of migrants milking the welfare system in what could be one of the largest welfare schemes in years.

Americans are reaching a breaking point.

Fraud fatigue is now a very real thing.

People are not only questioning the system, but are completely done with the system and considering not even paying taxes.

Why should we? It only gets sent to Somali Pirates, and fraudsters and… pic.twitter.com/9kAumrr7Cx

— AmericanPapaBear (@AmericaPapaBear) December 31, 2025

Americans are reaching a breaking point. Fraud fatigue is real.