Evidence from credible sources supports the statement as accurate. Learn more in Methodology.
SBA has halted annual grant payments to Minnesota and suspended 6,900 borrowers representing approximately $400 million, with those individuals barred from further loan programs.
Evidence from multiple independent news outlets confirms that the U.S. Small Business Administration (SBA) has paused or halted its regular/annual small-business funding programs to Minnesota and separately suspended thousands of Minnesota borrowers over suspected pandemic loan fraud. A KSTP report from Dec. 24, 2025 quotes SBA Administrator Kelly Loeffler stating she informed Gov. Tim Walz the SBA would halt roughly $5.5 million in annual funding tied to programs such as Small Business Development Centers, Women’s Business Centers, SCORE, the Microloan Program, and other recurring SBA grants. A subsequent KSTP report explains that nearly 7,000 Minnesota borrowers, approved for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) totaling about $400 million, have had their loans frozen and are barred from all future SBA loan programs, including disaster loans, amid a fraud probe. The borrower count is reported as “nearly 7,000” in one piece and “6,900” in several others, but they clearly refer to the same enforcement action and loan volume.
Verdict: True, because credible reporting shows the SBA both halted its annual grant-type funding streams to Minnesota and suspended roughly 6,900 Minnesota borrowers representing around $400 million in PPP/EIDL approvals, with those individuals barred from further SBA loan programs.