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Small Business Administration Blocks All Grants to Minnesota Amid Shocking Fraud Investigation

small-business-administration-blocks-all-grants-to-minnesota-amid-shocking-fraud-investigation
Small Business Administration Blocks All Grants to Minnesota Amid Shocking Fraud Investigation

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Kelly Loeffler, head of the Small Business Administration, seen in a January photo, is reportedly

Kelly Loeffler, head of the Small Business Administration, seen in a January photo, is reportedly “cutting off and clawing back” SBA loans to Minnesota as the agency investigates allegations of fraud. (Kevin Dietsch / Getty Images)

 By Michael Schwarz  December 29, 2025 at 11:15am

Supporters of President Donald Trump’s Make America Great Again movement have shown patience, but the time for results has come.

In short, we must make 2026 the year of the arrests.

Sunday on the social media platform X, conservative podcaster Benny Johnson reported that Kelly Loeffler, Administrator of the Small Business Administration, has cut off all SBA grants to Minnesota amid that state’s outrageous fraud scandal, much of it involving the state’s Somali community, which investigative journalist Nick Shirley further exposed in a 42-minute video posted to X on Friday.

“SBA Administrator Kelly Loeffler tells me she is ‘disgusted and sickened’ by Nick Shirley’s expose of Somali small business fraud and is taking immediate action,” Johnson wrote. “SBA is cutting off and clawing back ALL SBA grants to Minnesota, effective immediately.”

According to Johnson, Loeffler blamed Democratic Gov. Tim Walz of Minnesota. She also indicated that “within days” SBA had found $500 million in fraud.

Best of all, Loeffler told Johnson that “state officials” who built an “industrial-scale crime ring” will not escape justice.

Of course, no one yet knows the precise scale of that “crime ring.” While the investigation continues, however, the SBA will protect American taxpayers.

“The scope of this international scam is still unknown, likely in the billions,” Loeffler told Johnson. “Pending further review, SBA is freezing all grant funding to the state in order to stop the rampant waste of taxpayer dollars and uncover the full depth of fraud.”

🚨BREAKING: The Small Business Administration Drops HAMMER on Somali Fraud, Cuts Off All Minnesota

SBA Administrator Kelly Loeffler tells me she is “disgusted and sickened” by Nick Shirley’s expose of Somali small business fraud and is taking immediate action. SBA is cutting off… pic.twitter.com/UO9QU2lk56

— Benny Johnson (@bennyjohnson) December 28, 2025

Shirley’s Friday video blew the lid off the fraud scandal.

“We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable,” the young journalist wrote.

To say that the video spread “like wildfire,” as Shirley hoped, would qualify as a massive understatement. In fact, as of Monday morning, that incredible piece of journalism had more than 114 million views on X.

🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable

We ALL… pic.twitter.com/E3Penx2o7a

— Nick shirley (@nickshirleyy) December 26, 2025

The more American taxpayers learn about the details, the hotter and faster their blood should boil.

Shirley, for instance, tried to visit several state-supported “day care” facilities in the Somali community. But he found no children present.

Meanwhile, Assistant United States Attorney Joe Thompson estimated that the fraud in Minnesota’s Medicaid system could reach as high as $9 billion, a figure that would represent roughly 75 percent of Somalia’s entire 2024 GDP.

“What we see in Minnesota is not a handful of bad actors committing crimes,” Thompson said. “It’s staggering, industrial-scale fraud.”

Loeffler, of course, used that same adjective: “industrial-scale.”

Let us hope that Trump administration officials will do more than coordinate their messaging.

Then, let us hope that Americans will have the stomach for the mass arrests, prosecutions, and deportations that must follow in the wake of Walz’s Minnesota fraud scandal.

Michael Schwarz holds a Ph.D. in History and has taught at multiple colleges and universities. He has published one book and numerous essays on Thomas Jefferson, James Madison, and the Early U.S. Republic. He loves dogs, baseball, and freedom. After meandering spiritually through most of early adulthood, he has rediscovered his faith in midlife and is eager to continue learning about it from the great Christian thinkers.

Michael Schwarz holds a Ph.D. in History and has taught at multiple colleges and universities. He has published one book and numerous essays on Thomas Jefferson, James Madison, and the Early U.S. Republic. He loves dogs, baseball, and freedom. After meandering spiritually through most of early adulthood, he has rediscovered his faith in midlife and is eager to continue learning about it from the great Christian thinkers.

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