The Small Business Administration is enlisting Palantir’s help in its nationwide probe of suspected loan fraud, as yearslong fraud allegations in Minnesota draw national attention.
According to federal spending records, the SBA signed a $300,000 contract with the data analytics and software giant Monday. The contract’s description read “SBA Fraud Prevention Pilot and Bootcamp,” and has a projected end date of April 4.
The contract, signed through the General Services Administration’s Multiple Award Schedule, was made public just days after SBA Secretary Kelly Loeffler announced that the agency had suspended 6,900 Minnesota borrowers for alleged fraud following its review of thousands of pandemic-era loans administered to the state. Loeffler said the borrowers were approved for 7,900 Paycheck Protection Program (PPP) and Economic Injury Disaster (EIDL) loans totaling about $400 million.
When asked about the Palantir contract, SBA spokesperson Maggie Clemmons pointed to the agency’s Minnesota probe, writing: “We’re now expanding our investigations nationwide as part of a broader zero-tolerance policy on fraud.”
“The agency has multiple audits underway, from pandemic-era programs to federal contracting, and will work with law enforcement to hold fraudsters accountable and put the criminals who have cheated American taxpayers behind bars,” Clemmons added.
SBA did not confirm whether other companies are involved in the audit. Palantir did not respond to a request for comment.
The technology company, which currently performs various data and software-based tasks for numerous federal agencies, offers fraud detection as part of its Foundry platform. According to its website, the platform consolidates “disparate information assets” to produce a “unified data landscape.” It includes a Foundry Case Manager that tracks investigation steps and automatically sorts alerts by risk level.
The fraud allegations in Minnesota resurfaced late last month after right-wing influencer Nick Shirley posted a video on YouTube about alleged fraud schemes at child care programs in Minnesota. The video quickly went viral, prompting the Trump administration to freeze child care funds to the state and call for an audit into some daycares.
The allegations follow years of investigations into fraud schemes in the North Star State, including an FBI probe during the Biden administration, as well as reporting on the incidents by local and national media dating back to the earlier parts of this decade.
Vice President JD Vance later announced Thursday that the Trump administration is creating a new attorney general position focused on fraud investigations. At the same time, President Donald Trump has pardoned numerous convicted fraudsters in his second term. Among those is Trevor Milton, the founder and former executive chairman of Nikola, who no longer has to pay investors hundreds of millions in financial penalties as a result.
The contract marks Palantir’s first public agreement with the SBA and underscores the technology company’s expansion beyond defense contracting for the federal government. FedScoop first reported last month that Palantir is also quietly working with the Education Department on its revamped foreign funding portal and is in consideration for the Centers for Medicare and Medicaid Services’ national provider directory project.
The company has faced increasing scrutiny for its work with the Trump administration on certain projects, notably including its contracts with Immigration and Customs Enforcement and the Department of Homeland Security.
