Downing Bill Gives Prosecutors More Time to Pursue $200 Billion in COVID Fraud
WASHINGTON, D.C. — A bill authored by Montana Congressman Troy Downing to crack down on COVID-era loan fraud cleared a key committee vote Tuesday, advancing legislation that would give prosecutors more time to pursue criminals who exploited pandemic relief programs.
The House Committee on Small Business voted favorably on H.R. 4495, the SBA Fraud Enforcement Extension Act, which Downing introduced with Congressman K. Michael Conaway (R-TX), with bipartisan support. The bill now moves to the full House of Representatives for consideration.
Downing’s legislation would extend the statute of limitations for prosecuting fraud related to two specific Small Business Administration programs from five years to 10 years. The targeted programs are the Restaurant Revitalization Fund and the Shuttered Venue Operators Grant, both designed to help businesses that were disproportionately affected by pandemic lockdowns.
“During the COVID-19 pandemic, bad actors defrauded the federal government out of billions in illegitimate loans and grants,” Downing said. “My bill empowers law enforcement to hold these fraudsters accountable, restores the integrity of the SBA, and ensures proper stewardship of taxpayer dollars.”
The SBA Office of the Inspector General estimates that approximately $200 billion in illegitimate funds were distributed through SBA COVID programs, according to Downing’s office. While many of the pandemic-era programs delivered needed aid to legitimate small businesses, they were also exploited by criminals seeking to secure fraudulent loans and grants.
The Restaurant Revitalization Fund and Shuttered Venue Operators Grant specifically targeted businesses that rely on confined gathering spaces, making them particularly vulnerable to lockdown policies during the pandemic.
By extending the statute of limitations, the legislation would provide prosecutors and law enforcement agencies additional time to investigate and prosecute these complex financial crimes. The current five-year limitation period has proven insufficient given the scope and complexity of the fraud investigations.
“I’m glad to see this legislation pass committee with bipartisan support and look forward to seeing the individuals who exploited these programs prosecuted to the fullest extent of the law,” Downing said.