Downing Bill to Crack Down on COVID Loan Fraud Clears Key Committee Vote
Today, Congressman Troy Downing’s (MT-02) H.R. 4495, the SBA Fraud Enforcement Extension Act, was reported favorably out of the House Committee on Small Business with bipartisan support, taking a critical step toward becoming law. The bill is now eligible for consideration before the full House of Representatives.
“During the COVID-19 pandemic, bad actors defrauded the federal government out of billions in illegitimate loans and grants,” said Congressman Downing. “My bill empowers law enforcement to hold these fraudsters accountable, restores the integrity of the SBA, and ensures proper stewardship of taxpayer dollars. 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.”
Click here or on the image above to watch Congressman Downing’s remarks in support of H.R. 4495.
Background:
The SBA Office of the Inspector General estimates that approximately $200 billion in illegitimate funds have been distributed by SBA COVID Programs.
Two of these SBA COVID-era programs, the Restaurant Revitalization Fund and the Shuttered Venue Operators Grant, targeted financial assistance toward businesses that rely on confined gathering places and were thus disproportionately harmed by lockdown policies.
While COVID-era SBA programs in many cases delivered much-needed aid to small businesses, they were also exploited to an unacceptable degree by criminals seeking to defraud American taxpayers and secure illegitimate loans and grants.
H.R. 4495 extends the statute of limitations for the enforcement of anti-fraud standards involving the Restaurant Revitalization Fund and the Shuttered Venue Program from 5 years to 10 years to allow prosecutors and law enforcement additional time to investigate and prosecute these crimes.
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