HOLY SMOKES: SBA Administrator Kelly Loeffler Just Revealed She is Suspending ALL…

Earlier this month, Loeffler had notified Minnesota Gov. Tim Walz that the SBA would immediately halt more than $5.5 million in annual support to resource partners in the state until further notice.

The freeze targets Small Business Development Centers, women’s business centers, microloan programs, and other federal disbursements, effectively pausing the entire 2025 schedule of SBA support to Minnesota.

The move comes as investigations reveal that Minnesota became ground zero for pandemic-era fraud, with a Somali-centered criminal network reportedly siphoning at least $1 billion through welfare and Medicaid programs, contributing to a total estimated loss of $9 billion.

U.S. Attorney Joseph Thompson confirmed that billions in Medicaid funding were likely lost to fraud, calling it an unprecedented abuse of taxpayer dollars.

Loeffler said the Walz administration bears responsibility for allowing this system to metastasize, dismissing early warnings from legislators and whistleblowers and labeling oversight efforts as racially insensitive. She blamed the governor for making Minnesota the epicenter of one of the largest fraud scandals of the COVID-19 era, describing the state’s policies as deliberately designed to pump out welfare funding without oversight or accountability.

Federal scrutiny has expanded beyond the SBA. The USDA and Treasury Department are now investigating misuse of SNAP and other benefit programs, while the Department of Health and Human Services has frozen childcare payments to Minnesota amid reports that taxpayer dollars were funding daycares that appeared vacant, according to independent reporting.