SBA’s Loeffler Says Minnesota Fraud
Fraud Warning
A televised warning from SBA Administrator Kelly Loeffler described Minnesota’s pandemic-loan
scandal as “just the tip of the iceberg,” suggesting more revelations ahead.
Scope of the Case
Investigators identified thousands of potentially fraudulent SBA loans tied to COVID relief.
Nearly 7,900 loans and about 6,900 individuals are under review, pointing to serious oversight failures.
Enforcement Ahead
Loeffler said those responsible will be barred from future SBA programs and referred for federal prosecution,
signaling a coming wave of criminal cases that could further erode trust in relief efforts.
Political Fallout
The scandal has drawn in Rep. Ilhan Omar over her MEALS Act, passed to feed children during school closures.
Critics claim it enabled abuse linked to the Feeding Our Future case,
while supporters argue lawmakers’ intent must be separated from administrative failure and criminal misconduct.
