Minnesota agency admits fraud attempts in $100 million small business grant program
By Ryan Raiche
Published on April 9, 2026.
The head of the Minnesota agency overseeing $100 million in small business grants, Matt Varilek, has admitted to fraud attempts in the Department of Employment and Economic Development (DEED) program. This comes amid concerns that some of the taxpayer dollars are not being used properly. An investigation by 5 INVESTIGATES identified multiple businesses receiving thousands of dollars in state grants despite operating miles away from qualifying neighborhoods or listing addresses that raised questions about eligibility. Varileek said that while safeguards are in place for the Minnesota Promise Act, they are not foolproof. He also revealed that the agency has already withdrawn some money in the neighborhood of $10,000.
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