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‘LOOTING AMERICANS’: Kelly Loeffler Freezes $5.5 Mn SBA Aid To Minnesota Over ‘Somali Fraud’ Scandal

410 views | Dec 25, 2025, 09:57:05 PM | TOI.in
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The U.S. Small Business Administration has frozen $5.5 million in federal funding to Minnesota, citing serious concerns over pandemic-era fraud. SBA Administrator Kelly Loeffler says investigators uncovered millions in COVID relief loans tied to indicted fraud suspects and thousands more flagged as suspicious. Minnesota Governor Tim Walz disputes the claims, arguing the state has taken steps to fight fraud and protect taxpayer dollars. The funding pause affects six SBA-backed programs and remains in place pending further federal review. The dispute has now sparked national political and legal scrutiny.

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