Small Business Administration Suspends Grants to Minnesota
The Small Business Administration (SBA) Secretary Kelly Loeffler announced the decision to halt grants to Minnesota due to ongoing allegations of scams tied to the Somali community in the state.
Conservative activist Benny Johnson shared that after YouTuber Nick Shirley and his team uncovered significant fraud in Minnesota, Loeffler indicated she would take “immediate action.” This followed revelations of more than $110 million in potentially fraudulent activity in just one day.
Johnson mentioned that Loeffler held Minnesota Gov. Tim Walz responsible for not enforcing business regulations, describing the governor’s approach as one that “tolerates and promotes fraudulent activity.”
According to Johnson, Loeffler expressed her dismay over the situation, stating she feels “disgusted and sickened” by the fraud exposure. He later wrote that the SBA is immediately terminating all grants to the state.
Johnson’s post also highlighted that Loeffler claimed the SBA had detected $500 million in fraud shortly after the investigation began in Minnesota. She emphasized that the focus would be on state officials who have allowed “industrial-scale criminal organizations” to exploit hardworking citizens.
“The full extent of this international fraud remains uncertain but could reach into the billions. As we investigate further, the SBA is freezing all state grants to prevent further misuse of taxpayer money,” Loeffler remarked.
Additionally, Rep. Tom Emmer (R-Minn.) has been pressing Gov. Walz for answers following Shirley’s video report from a Minnesota learning center, where he indicated that nearly 99 children received sizeable federal aid without any evident activity.
Shirley had visited various facilities, including the Quality Learning Center in South Minneapolis, where he noted that the center had even misspelled its own name. As he approached the center, a woman falsely accused him and another person of being immigration agents and shouted for them not to enter.
Shirley plans to release further details in an upcoming report. Previously, City Journal reported in November that millions in misappropriated taxpayer funds from the Somali community in Minnesota might be directed to Somalia, potentially benefiting the terrorist group Al Shabaab.
