Minnesota fraud crackdown freezes about 6,900 pandemic loan borrowers

The Trump administration suspended about 6,900 Minnesota borrowers over suspected COVID-era loan fraud tied to the Feeding Our Future probe, and federal investigations are ongoing with House Oversight hearings set for January 7.

Federal officials announced the suspension of roughly 6,900 borrowers in Minnesota over suspected fraud involving pandemic-era loans. The Small Business Administration said those suspended will be barred from SBA loan programs going forward. The action follows an investigation tied to Feeding Our Future, a nonprofit alleged to have improperly billed for pandemic services. Federal and congressional inquiries related to pandemic relief and state programs are continuing. Key details: - The SBA announced suspensions covering about 7,900 Paycheck Protection Program and Economic Injury Disaster loans in Minnesota. - The agency said suspended borrowers will be banned from all SBA loan programs, including disaster loans. - The action is linked to the Feeding Our Future investigation and broader federal probes into pandemic relief and state programs. - The House Oversight Committee has scheduled hearings for January 7, and Gov. Tim Walz is set to testify on February 10. Summary: The suspensions are part of an expanding federal enforcement response tied to pandemic-era fraud investigations and the Feeding Our Future probe. Federal and congressional investigations are ongoing, and scheduled hearings in January and February are the next public procedural steps.