The Small Business Administration (SBA) has reported ongoing fraud within the Somali community in Minnesota, specifically identifying around one million dollars in fraudulent Paycheck Protection Program (PPP) loans. This program was established to support businesses affected by the COVID-19 pandemic. Kelly Loeffler, the SBA Administrator appointed during the Trump administration, announced the findings on social media, indicating that numerous individuals and organizations, including Feeding Our Future, are implicated in a larger $1 billion COVID fraud scandal in Minnesota.

Loeffler stated that an investigation has been initiated to examine the network of Somali organizations and executives involved in these alleged fraudulent activities. She emphasized the SBA's commitment to uncovering the extent of the fraud and holding accountable those responsible, despite claims from Minnesota Governor Tim Walz that his administration is effectively addressing the issue.

A spokesperson for the SBA confirmed that the agency is investigating all individuals and organizations indicted in the fraud scheme to determine if they also fraudulently obtained PPP loans. This includes evaluating their citizenship status and the legitimacy of their nonprofit work. The spokesperson reiterated the agency's dedication to recovering funds that were improperly obtained.

Governor Walz has publicly stated his commitment to addressing fraud in the state, asserting that his administration is taking action against criminals, including those not limited to the Somali community. However, reports indicate that state authorities did not initiate investigations into these fraud cases, and whistleblowers within state agencies have alleged that they faced retaliation for reporting fraud.

The situation highlights ongoing concerns regarding the management of federal relief funds and the implications of fraud on community trust and resource allocation during a public health crisis.