Frontlines TPUSA White House Correspondent Monica Paige recently interviewed Kelly Loeffler, Administrator of the White House’s Small Business Administration (SBA).
According to Frontlines, “The Trump Administration suspended nearly 7,000 Minnesota borrowers amid approximately $400 million in suspected fraudulent activity in COVID-era PPP & EIDL loans.”
On the subject of loan fraud, Loeffler told Paige the SBA’s conduct toward the state of Minnesota amid the loan fraud discovered there.
“At the SBA, it is truly a new day in the Trump administration. So we came in and immediately got to work on busting up fraud. And we know that there was about potentially $200 billion worth of fraud in the former PPP, EIDL programs,” she said. “When the Minnesota fraud came to light we immediately got to work drilled down on Minnesota’s specifically found thousands and thousands of loans that were flagged as fraudulent. We went in and blocked seven thousands of people from ever doing business again with the SBA: those loans totaled $430 million. And now we’re sending those files over to federal law enforcement for prosecution.”
When asked of the “Somali daycare fraud,” Loeffler said “This is all part of a program to defraud the federal government and steal taxpayer dollars from hard-working Americans. We need to make sure that we’re looking at those programs closely.”
Prosecution of loan fraud violators will be left to federal law enforcement, Loeffler maintained. The SBA is defunding any further efforts in Minnesota, she said, which was communicated to Governor Tim Walz in late December.
“The American taxpayer deserves these answers quickly,” she stated.
The “strong framework” built in 2025 for the SBA is going to be developed more going into 2026, with the mission of empowering the private sector. The SBA looks to strike out “thousands of regulations.”
