# Letter to Administrator Kelly Loeffler, Small Business Administration --- MTN Minneapolis, Minnesota [email protected] May 13, 2026 The Honorable Kelly Loeffler Administrator U.S. Small Business Administration 409 3rd Street SW Washington, DC 20416 **Re: SBA 8(a) Presumption-of-Social-Disadvantage Architecture, MN PPP/EIDL Portfolio Touched by Feeding Our Future and EIDBI Fraud, and the §43A.191 Federal-Contracting Analog — Coordination Request Under the Task Force to Eliminate Fraud (E.O. of March 16, 2026)** Dear Administrator Loeffler: I write to identify the Small Business Administration's Minnesota portfolio — SBA 8(a) Business Development program eligibility under post-SFFA and post-Ultima Servs. review, PPP/EIDL clawback coordination with DOJ regarding Feeding Our Future / EIDBI defendants, and SBA disaster-loan exposure in Minnesota communities — as one operational consequence of the same race-conscious-preference architecture that the §43A.191 federal complaint addresses at the state level. **The Portfolio Issue.** The SBA 8(a) Business Development program operates on a presumption of social disadvantage for members of designated racial and ethnic groups. The Eastern District of Tennessee in Ultima Servs. Corp. v. United States Department of Agriculture (2023) held that this presumption violated the Fifth Amendment's equal-protection guarantee. The SBA's response in 2023 and subsequently has imposed an individualized social-disadvantage requirement, but the underlying architecture remains substantially in place. The Department of Justice's filing of United States v. State of Minnesota (0:25-cv-03798, D. Minn., Jan. 14, 2026) against §43A.191 is the state-government counterpart to the federal-contracting question that Ultima Servs. addressed. https://www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program | https://www.justice.gov/opa/media/1415681/dl **The PPP / EIDL / Disaster-Loan Exposure.** A portion of the SBA's pandemic-era loan portfolio in Minnesota was disbursed to entities that subsequently appeared in the Feeding Our Future, EIDBI, and Housing Stabilization Services prosecution dockets. PPP and EIDL clawback proceedings are being coordinated with the U.S. Attorney's Office for the District of Minnesota in connection with the broader fraud investigations. The cumulative SBA exposure tracks the broader federal-program exposure that the House Oversight Committee has estimated at approximately $9 billion in Medicaid alone. https://oversight.house.gov/wp-content/uploads/2026/03/The-Cost-of-Doing-Nothing_How-Tim-Walz-and-Keith-Ellison-Fueled-Minnesotas-Fraud-Explosion_3.4.26_FINAL.pdf **The University of Minnesota Origin — Architectural.** The 8(a) "presumption of social disadvantage" architecture is the federal-contracting analog of the same race-conscious preference architecture that the University of Minnesota Office for Equal Opportunity and Affirmative Action (EOAA) developed in 1972 and that was federalized through the 1976 HEW-accepted UMN plan distributed to 111 institutions. The state-level codification in §43A.191 and the federal-level codification in the 8(a) framework are parallel operational expressions of the same compliance template. The University of Minnesota Carlson School of Management credentials the nonprofit-administration class that operated the Feeding Our Future / EIDBI / HSS shells whose SBA loan exposure is the subject of clawback litigation. https://eoaa.umn.edu/ | https://carlsonschool.umn.edu/ **The Institutional Admissions.** The University of Minnesota's own commissioned Truth Report (April 11, 2023) states that the founding board "committed genocide and ethnic cleansing of Indigenous peoples for financial gain." In October 2025, the University signed an Office for Civil Rights Resolution Agreement acknowledging that its PhD Project partnership violated Title VI by discriminating against white and Asian students. https://mn.gov/indian-affairs/assets/full-report_tcm1193-572488.pdf | https://www.startribune.com/the-u-signs-agreement-acknowledging-discrimination-against-white-and-asian-students-cuts-ties-with-recruiting-nonprofit/601564669 **The Consolidated Federal Posture.** The Task Force to Eliminate Fraud, established by the March 16, 2026 Executive Order, coordinates the cross-agency response. The DOJ §43A.191 challenge addresses the state-level architecture. Ultima Servs. addressed the federal-contracting analog. The SBA's post-Ultima posture is the federal-program parallel of the DOJ's state-program prosecution. https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ **The Ask.** I respectfully request that the Small Business Administration: 1. **Continue the post-Ultima Servs. review** of the 8(a) presumption-of-social-disadvantage architecture, treating the parallel DOJ §43A.191 challenge as a structurally analogous federal action; 2. **Coordinate PPP / EIDL clawback** with the U.S. Attorney's Office for the District of Minnesota across the Feeding Our Future, EIDBI, and HSS dockets under the Task Force framework; 3. **Audit the SBA disaster-loan portfolio** in Minnesota communities affected by the fraud schemes; and 4. **Report findings to the Task Force to Eliminate Fraud** under the March 16, 2026 Executive Order coordination framework. This letter is one of approximately twenty Cabinet-level briefings I am submitting under the Task Force framework. Respectfully submitted, MTN [email protected] --- **Primary Sources Cited:** - E.O. Task Force to Eliminate Fraud: https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ - SBA 8(a) Business Development: https://www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program - US v. State of Minnesota: https://www.justice.gov/opa/media/1415681/dl - House Oversight Report: https://oversight.house.gov/wp-content/uploads/2026/03/The-Cost-of-Doing-Nothing_How-Tim-Walz-and-Keith-Ellison-Fueled-Minnesotas-Fraud-Explosion_3.4.26_FINAL.pdf - UMN EOAA: https://eoaa.umn.edu/ - UMN Carlson School: https://carlsonschool.umn.edu/ - UMN TRUTH Report: https://mn.gov/indian-affairs/assets/full-report_tcm1193-572488.pdf - UMN OCR Resolution Agreement: https://www.startribune.com/the-u-signs-agreement-acknowledging-discrimination-against-white-and-asian-students-cuts-ties-with-recruiting-nonprofit/601564669 #Addresses_Advisories_and_Archives