Minnesota Daycare Received $231,472 in Federal Pandemic Loans
A Minnesota daycare facility that closed in January received federal pandemic assistance in 2020. Senator Joni Ernst has asked the Small Business Administration inspector general to review how the funds were used.
New York PostA Minnesota daycare facility received $231,472 in federal pandemic-era loans from the Small Business Administration in April and May 2020. The loans were later forgiven, according to records reviewed in a Senate investigation. The facility, listed as Quality Learning Center in SBA filings, operated under the name "Quality Learing Center" with a misspelled sign.
9 million from Minnesota’s Child Care Assistance Program in the prior year and approximately $10 million in state funding since 2019.
Senator Requests Review Sen.
Joni Ernst (R-Iowa) sent a letter to the SBA’s Office of the Inspector General asking for an examination of the federal assistance. Records show the loans were disbursed and forgiven, but no documentation details how the money was spent on salaries, rent, or other expenses.
"The crooks behind the ‘Learing Center’ didn’t stop there," Ernst wrote. S. " Ernst stated that Americans expect tax dollars to be spent responsibly and warned that those who misuse government funds face potential criminal investigation. The daycare case is one of 28 matters she has referred to the SBA inspector general.
5 million in annual federal funding to Minnesota while reviewing 13,600 COVID-era Paycheck Protection Program loans totaling $430 million that raised fraud concerns. The review included $3 million linked to the Feeding Our Future scandal. Federal charges filed before the daycare video went viral have resulted in 65 convictions, according to the Justice Department.
The Post contacted the SBA and its inspector general for comment but received no immediate response.
Key Facts
Story Timeline
4 events- April-May 2020
Quality Learning Center received $231,472 in SBA pandemic loans that were later forgiven.
1 sourceNew York Post - 2024
YouTuber Nick Shirley visited the facility, producing a video that drew public attention.
1 sourceNew York Post - January 2025
The daycare facility closed.
1 sourceNew York Post - 2025
Sen. Joni Ernst requested an SBA inspector general review of the federal loans.
1 sourceNew York Post
Potential Impact
- 01
The SBA inspector general may open a formal review of how the forgiven loans were spent.
- 02
If misuse is confirmed, federal authorities could pursue repayment or criminal charges.
Transparency Panel
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