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)
PPP loans were COVID-era federal relief program that gave small businesses money to keep workers on the payroll, while EIDL loans are part of an SBA program that provides low-interest disaster relief loans to help businesses survive during times of diaster, including the pandemic.
"Once again, the Trump SBA is taking decisive action to deliver accountability in a state whose unaccountable welfare policies have created a culture of fraud and abuse at the expense of law-abiding taxpayers and small business owners," Loffler continued.
The announcement follows California Attorney General Rob Bonta saying on Thursday that the Trump administration was promoting "baseless claims" of persistent fraud in the state.
Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)
Loeffler continued that the alleged California fraud comes after the SBA suspended 6,900 borrowers in Minnesota associated with 7,900 potentially fraudulent PPP and EIDL loans, which totaled roughly $400 million.
"As we did in Minnesota, we are actively working with federal law enforcement to identify the criminals who defrauded American taxpayers, hold them to account, and recoup the stolen funds. As we continue our state-by-state work, our message is clear: pandemic-era fraudsters will not get a pass under this Administration," Loeffler said, comparing California to its investigations in Minnesota.
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Minnesota became ground zero for welfare and social services fraud surrounding the pandemic late in 2025, when investigators uncovered sweeping fraud schemes that could top $9 billion.
https://www.foxnews.com/politics/trump-admin-uncovers-staggering-8-6-billion-suspected-california-small-business-fraud