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Home»Politics»Small Business Administration Uncovers $1M Somali Community Fraud in Minnesota
Politics

Small Business Administration Uncovers $1M Somali Community Fraud in Minnesota

Press RoomBy Press RoomDecember 6, 2025No Comments3 Mins Read
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The Small Business Administration has discovered that the fraud among the Somali community in Gov. Tim Walz’s Minnesota is still growing with its finding of one million dollars in PPP loan fraud.

Trump-appointed Small Business Administrator Kelly Loeffler took to her X account to report finding the massive fraud of the Paycheck Protection Program (PPP) that was launched to save businesses struggling to survive the oppressive government policies meant to address the COVID crisis in 2020.

“Numerous individuals and nonprofits indicted in the $1 billion Minnesota COVID fraud scandal, including Feeding Our Future, received SBA PPP loans in addition to other state and federal funding,” Loeffler wrote. “I have ordered an investigation into the network of Somali organizations and executives implicated in these schemes.”

“Despite Governor Walz’s best efforts to obstruct, SBA continues to work to expose abuse and hold perpetrators accountable, full stop,” she said.

In a follow up post, Loeffler added, “The fraud in this state runs deeper than was ever previously reported. SBA is working around the clock to get answers and make taxpayers whole.”

An SBA spokesperson told Fox News that the agency is:

…investigating all individuals and organizations indicted as part of the $1 billion Minnesota COVID fraud scheme to identify any that may have also fraudulently obtained PPP loans – evaluating their citizenship status, the legitimacy of their nonprofit work, and other requirements for eligibility.

The spokesperson added, “The agency will provide additional details as the scope of fraud across these Somali networks are uncovered – and remains committed to clawing back all funding that was illegally obtained on behalf of American taxpayers.”

For his part, Democrat Gov. Walz tried to spin the mounting number of federal investigations and prosecutions as evidence that he and Minnesota Democrats are putting scammers in jail.

“I take responsibility for putting people in jail. Governors don’t get to just talk theoretically. We have to solve problems. And I will note, it’s not just Somalis. Minnesota is a generous state. Minnesota is a prosperous state, a well-run state. We’re AAA-bond rated. But that attracts criminals. Those people are going to jail. We’re doing everything we can,” Walz told Meet The Press o November 30.

The governor’s claim is hard to support with the facts, since none of these scams were prosecuted, uncovered, or investigated by any Minnesota state authority or department even as the feds have moved in to convict a growing number of Somali scammers and put them in jail.

Indeed, hundreds of state employees in several of the agencies that should have been the first to put an end to the fraud have alleged that Walz and his regime not only ignored reports of massive fraud, the gov and his allies actively punished whistleblowers for raising the alarm.

Follow Warner Todd Huston on Facebook at: Facebook.com/Warner.Todd.Huston, Truth Social @WarnerToddHuston, or at X/Twitter @WTHuston



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