SBA Fraud Enforcement Extension Act

Mr. President, COVID-19 fraudsters stole at least $200 billion, but time is now running out to hold every single one accountable. Starting this week, crooks who defrauded pandemic relief programs are getting away.

Both Republicans and Democrats should be working around the clock to send a clear message to fraudsters past, present, and future: There are real consequences to stealing from taxpayers.

But Democrats have wanted to press ``snooze'' on passing my SBA Fraud Enforcement Extension Act. This is the third day fraudsters who stole millions in COVID relief funds have been able to escape justice.

You heard me right, folks. Swindlers who took advantage of SBA COVID relief programs are already escaping justice. Every day that passes, another gets away. The clock is ticking, and the countdown is on.

My bill simply gives investigators and prosecutors flexibility to do their jobs by extending the statutes of limitation for defrauding the Shuttered Venue Operators Grant Program and the Restaurant Revitalization Fund by 5 years.

Congress has already passed an extension of the statutes of limitation for SBA's other COVID relief programs with bipartisan support. This body came together against fraud, and we need to again.

Pandemic program fraud investigations have already uncovered $57 billion in fraud and issued 1,200 indictments. The SBA is currently conducting a manual review of over $3 billion in Restaurant Revitalization Fund awards, but in this program alone, more than $9.5 billion of awards still require review.

We can't allow swindlers, scammers, and con artists to run out the clock, because for fraudsters, time flies when you are having fun.

Look no further than rapper Chris Brown, who exploited the SVOG Program to pay for his lavish $80,000 birthday party and paid himself $5.1 million in the process, and multilocation franchise CoreLife Eatery, which ignored location limits to feast on $7.8 million in taxpayer funds.

Make no mistake, when it comes to fraud and abuse, this is just the tip of the iceberg. Thorough investigations take time, and investigators must be able to continue conducting this vital work on behalf of the American taxpayers. That is why I am urging my colleagues to support the SBA Fraud Enforcement Extension Act so fraudsters know the days of getting away with their scams are numbered. But if Congress continues to press ``snooze,'' taxpayers are the ones who lose billions.

With that, I ask unanimous consent that the Senate proceed to the immediate consideration of the following bills en bloc: Calendar No. 134, S. 1199, and Calendar No. 135, S. 2232.

I ask that the committee-reported substitute amendment to S. 1199 be withdrawn; that the Ernst substitute amendment at the desk be considered; that the Markey amendment to the Ernst substitute be considered and agreed to; that the Ernst substitute, as amended, be agreed to; further, that the committee-reported substitute to S. 2232 be agreed to; finally, that the bills, as amended, be considered read a third time and passed en bloc and that the motions to reconsider be considered made and laid upon the table, all en bloc.

Mr. Speaker, I yield myself such time as I may consume.

I rise today in support of H.R. 4495, the SBA Fraud Enforcement Extension Act. This bill builds off the work done by Ranking Member Velazquez in a previous Congress. That bill extended the statute of limitations for investigating fraud in the PPP and EIDL programs.

All of the major pandemic relief programs, including the Shuttered Venues Operators Grant Program and Restaurant Revitalization Fund, will have extended statutes of limitations from 5 years to 10 years because of this bill.

Passing this bill into law will send a strong message to fraudsters that their behavior will not be tolerated, and those who committed fraud will be held accountable in the years to come.

The pandemic upended regular SBA operations, and the agency executed 14 years of lending in 14 days to keep small businesses afloat. While these programs helped millions of small businesses, the implementation was not without its flaws.

As we now know, potential fraud could range from $36 billion up to $200 billion. While the exact number will never be known, we do know that the vast majority of that fraud came in the first 9 months under the first Trump administration.

Recognizing the potential for fraud, the Biden administration instituted strong upfront controls for RRF and SVOG. To date, the Office of the Inspector General's work has resulted in charges against 25 individuals, 14 criminal convictions, and more than $61 million in recoveries.

Now, the OIG has 31 open RRF cases and 6 open SVOG cases. While modest in number, these cases are complex, involving layered transactions, false documentation, and financial concealment. These cases will take time to investigate and prosecute, and we owe it to the experts doing the work to give them the tools they need.

Extending the statute of limitations is only part of the equation. We must provide full funding to the Office of the Inspector General so that they have the resources to root out the fraud. Moreover, we need to ensure proper staffing at the SBA to review the 1,892 active SVOG awards totaling over $3.2 billion.

Mr. Speaker, with that said, this legislation is a step in the right direction. I commend Mr. Downing and Mr. Conaway for leading this effort. We need to make sure that no one gets away with fraud simply because the clock ran out.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 2 minutes to the gentleman from the great State of New Jersey (Mr. Conaway).

Mr. Speaker, I will close by thanking Mr. Conaway, Mr. Downing, and Chairman Williams for their work on ensuring taxpayer funds are protected from fraudsters. This is a commonsense measure to rebuild public trust, and I encourage my colleagues to vote ``yes.''

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, waste, fraud, and abuse fundamentally undermine the American people's trust in the government. When well- intentioned Federal programs are defrauded by criminal bad actors, taxpayer dollars are wasted, and funding for businesses and individuals in need of this vital support is squandered and stolen.

Over the course of the COVID pandemic, the Small Business Administration carried out an extensive effort, channeling funding to small businesses facing unprecedented economic challenges. In total, SBA provided over $1.2 trillion in emergency loans and grants during this period.

While COVID-era SBA programs in many cases delivered much-needed emergency aid to small businesses, these programs were sometimes exploited by criminals seeking to defraud American taxpayers and illegally secure illegitimate loans and grants. According to a 2023 report from the SBA's Office of Inspector General, SBA distributed over $200 billion in potentially fraudulent funds in its COVID-era programs.

This level of fraud undermines the integrity of the SBA. It is essential that we track these criminal fraudsters down and hold them accountable for their actions.

Two of these SBA COVID-era programs, the Restaurant Revitalization Fund and the Shuttered Venue Operators Grant, directed financial assistance toward small businesses that were disproportionately harmed by lockdown policies due to their reliance on confined gathering spaces.

The statute of limitations for prosecuting fraud within these programs is set to expire beginning early next year. If Congress does not act, law enforcement will not have the necessary time to investigate and prosecute these crimes.

Along with my colleague, Representative Conaway, I have introduced H.R. 4495, the SBA Fraud Enforcement Extension Act. This bill extends the statute of limitations from 5 years to 10 years for fraud with respect to SBA's Restaurant Revitalization Fund and the Shuttered Venue Operators Grant. This extension will provide critical time for law enforcement to track down criminals who have defrauded the U.S. Government and hold them accountable.

Small businesses across our country, including in my home district of central and eastern Montana, deserve an SBA that efficiently supports local job creators and isn't undercut by fraud.

Mr. Speaker, I thank my colleague, Representative Herb Conaway, for co-leading this legislation.

The fraudulent spending of Federal taxpayer dollars undermines our trust in the government. It is essential that law enforcement is given the proper tools, time, and authority to punish those who subvert the integrity of the SBA programs and ensure that fraudsters face consequences for their actions.

Mr. Speaker, I urge my colleagues to support this legislation.

Mr. Speaker, I move to suspend the rules and

pass the bill (H.R. 4495) to extend the statute of limitations for fraud under certain pandemic programs, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 4495, the SBA Fraud Enforcement Extension Act, a companion piece of legislation to S. 1199, introduced by Senator Ernst.

H.R. 4495 is bipartisan legislation introduced by the gentleman from Montana (Mr. Downing) and the gentleman from New Jersey (Mr. Conaway).

For 4 years, the Biden administration's SBA failed to address over $200 billion in COVID-19 era fraud. H.R. 4495 extends the soon-to- expire statute of limitations for two pandemic-era relief programs: The Shuttered Venue Operators Grant and the Restaurant Revitalization Fund. The statute of limitations for these programs is set to expire this December.

These two programs combined provided over $44 billion in grants and funding for small businesses during the pandemic. Unfortunately, fraudsters stole COVID relief funds from small businesses across the country. These fraudsters hope that the statute of limitations for their crimes will pass, allowing them to skirt justice.

As Congress, we cannot let this happen. American taxpayer dollars should be protected at all costs.

In the 117th Congress, we took similar action to extend the statute of limitations under the Paycheck Protection Program and the COVID EIDL program. Today, we have the chance to close this final loophole so that fraudsters do not get away with defrauding American taxpayers and entrepreneurs.

This legislation sends a clear message that the era of taking advantage of the American taxpayer is simply over.

Mr. Speaker, I urge my colleagues to support H.R. 4495, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from the great State of Montana (Mr. Downing).

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I urge my colleagues to support this commonsense legislation. We cannot let fraudsters get away with American taxpayer dollars.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I rise today in support of H.R. 4495, the SBA Fraud Enforcement Extension Act. I am the co-lead on this legislation, along with my friend, colleague, and fellow Air Force veteran, Representative Downing.

During the COVID-19 pandemic, more than 30 million small businesses were negatively impacted. The Federal Government took action to ensure that an unprecedented amount of money flowed into small businesses in the form of grants and loans in order to help them stay afloat.

Over the course of 18 months, the SBA administered four major programs, which delivered 22.1 million loans and $1.2 trillion in grants. Although these loans did provide much-needed relief to numerous small businesses throughout the United States, there were many who illegally obtained these loans.

The SBA issued a report titled: ``Protecting the Integrity of the Pandemic Relief Programs.'' It states that there are estimates that $36 billion of the $1.2 trillion in pandemic relief emergency funds were obtained illegally.

H.R. 4495 would extend the civil and criminal statute of limitations for violations of, or conspiracy to violate, fraud related to the Shuttered Venue Operators Grant and the Restaurant Revitalization Fund.

To ensure small businesses can receive the benefits they deserve, it is important that the SBA is properly funded and staffed. I am concerned that the cut in the SBA's workforce by 43 percent will impede the SBA's ability to recover the improper and illegally obtained payments.

Mr. Speaker, having said that, I urge all of my colleagues to support this very important legislation. I thank my colleague, Representative Downing, for allowing me to lead this important piece of legislation with him.