The Small Business Administration announced the suspension of nearly 7,000 Minnesota borrowers after identifying hundreds of millions of dollars in suspected pandemic loan fraud. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
"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," she stated.
The suspected fraudulent activity included 7,900 PPP and EIDL loans approved during the COVID-19 pandemic, Loeffler said.
The announcement comes as Minnesota Gov. Tim Walz and his administration face scrutiny over billions of dollars in social services fraud.
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Loeffler sent a letter Tuesday to Walz on Dec. 23, telling him that her agency will "halt" more than $5.5 million in annual support to resource partners in the state "until further notice."
"I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support," Loeffler wrote.
The SBA said that at least $2.5 million in PPP and EIDL funds issued during the pandemic era were connected to a Somali fraud scheme based in Minneapolis.
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The SBA says it flagged nearly $400 million in potentially fraudulent PPP and EIDL loans tied to Minnesota borrowers. (AP Photo/Rod Lamkey, Jr.)
Fox News Digital has reached out to Walz’ office for comment.
Fox News Digital's Charles Creitz contributed to this report.
Michael Sinkewicz is a writer for Fox News Digital. Story tips can be sent to michael.sinkewicz@fox.com
https://www.foxnews.com/politics/sba-suspends-nearly-7000-minnesota-borrowers-over-suspected-400m-pandemic-loan-fraud