Yesterday, Congressman Roger Williams, Chairman of the House Committee on Small Business, sent a letter to the Small Business Administration (SBA) as part of an ongoing investigation into fraud and concealment in the SBA’s COVID-era lending programs. The probe focuses on reports of misuse and significant fraud involving nonprofit networks in Minnesota.
The House Small Business Committee's letter requests information from the SBA regarding federal pandemic relief funds distributed to entities in Minnesota that may be linked to a large-scale fraud scandal. The committee is seeking detailed records related to the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) program, which were designed to help small businesses during the pandemic.
Public reporting and federal prosecutions have connected Minnesota-based nonprofits and individuals to schemes that allegedly took hundreds of millions of dollars from these federal programs while Tim Walz served as governor. One organization, Feeding Our Future, has been identified by the Justice Department as central to what it describes as the largest pandemic relief fraud case ever charged in U.S. history. As of late November, 78 people had been charged in connection with about $250 million in fraudulent claims; prosecutors estimate total losses could reach $9 billion or more.
Chairman Roger Williams stated: "The SBA’s COVID lending programs were created to keep small businesses afloat during an unprecedented crisis, not to subsidize fraud." He added: "Under the Biden-Harris administration, weak oversight and reckless decision-making allowed bad actors to exploit these programs and steal hundreds of millions in taxpayer dollars. The Feeding Our Future case highlights the severity of these failures, and the Committee on Small Business is determined to hold those responsible accountable."
The committee's request includes loan amounts, disbursement dates, forgiveness decisions, internal SBA communications regarding PPP and EIDL loans tied to Minnesota-based investigations, as well as all documents between the SBA and Governor Walz’s office or state agencies during the Biden-Harris administration.
SBA Administrator Kelly Loeffler responded: "Earlier this month, SBA determined that numerous Somali nonprofits indicted as part of the $1 billion pandemic fraud scandal in Minnesota received PPP and EIDL Loans totaling at least $2.5 million, including Feeding Our Future." She continued: "SBA has since broadened its investigation to uncover pandemic-era fraud across the entire state of Minnesota and looks forward to working in partnership with Congressional leaders to uncover the full depth of the abuse and deliver accountability on behalf of American taxpayers."
The committee has requested that relevant documents be provided by January 12, 2026.
Additionally, Fox News Digital reported that Loeffler informed Governor Walz her agency will halt more than $5.5 million in annual support for resource partners in Minnesota until further notice.
