Tim Walz’ Oversight Failures Blamed By SBA Administrator Kelly Loeffler As Agency Halts Minnesota Funding Amid $430 Million PPP Fraud Probe

by | Dec 30, 2025 | General

The Small Business Administration announced a pause on all grant funding to Minnesota as it investigates what it calls one of the largest state-level Paycheck Protection Program fraud cases in U.S. history.

SBA Halts Minnesota Grants Amid Massive PPP Fraud Investigation

On Monday, SBA Administrator Kelly Loeffler said that the agency is halting annual funding to Minnesota while investigating $430 million in suspected Paycheck Protection Program fraud.

Loeffler shared the Breitbart report in her post on X and argued that oversight failures under Minnesota Gov. Tim Walz (D-Minn.) contributed to the scale of the fraud.

“This Admin will not continue to hand out blank checks to fraudsters,” Loeffler said on X.

She added, “We will not rest until we clean up the criminal networks that have been stealing from American taxpayers.”

YouTuber Nick Shirley Exposes Misused Federal Aid

The action follows reporting by YouTuber Nick Shirley, who documented widespread misuse of federal aid by small businesses, including centers that received millions in grants but showed little or no activity.

Shirley reportedly uncovered over $110 million in fraud in a single day.

According to conservative activist Benny Johnson, Loeffler said the investigation uncovered “SBA was able to uncover half a billion dollars of fraud within days“ and identified state officials allegedly facilitating the fraud.

 SBA and the Governor’s team did not immediately respond to Benzinga’s request for comments.

See Also: Trump’s AI Order Under Fire— Amy Klobuchar Says It’s ‘Likely Illegal’ While Bernie Sanders Calls It ‘Extremely Dangerous’

Leaders Praise Shirley, Demand Walz Accountability

Vice President JD Vance lauded YouTuber Shirley’s investigative reporting on X, saying he did more useful journalism than the 2024 Pulitzer winners.

Elon Musk added that Shirley’s work reached more people than the combined daily readership of all U.S. newspapers.

Education Secretary Linda McMahon criticized Walz, saying he allowed billions in taxpayer fraud, and highlighted that the President Donald Trump administration stopped $1 billion in student aid fraud this year while working to clean up Minnesota’s issues.

Rep. Tom Emmer (R-Minn.) praised Trump, his cabinet, and journalists for pressing Walz to answer long-ignored questions, declaring that accountability is coming and that Minnesotans deserve better.

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Photo: Shutterstock/lev radin

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.