Congressman Troy Downing’s bill, H.R. 4495, known as the SBA Fraud Enforcement Extension Act, has passed the House of Representatives by voice vote. This marks the third time a bill sponsored by Downing has advanced from the House.
“Throughout the COVID-19 pandemic, billions of taxpayer dollars were siphoned off through fraudulent loans and grants,” said Congressman Downing. “This legislation gives law enforcement the tools they need to pursue those who exploited emergency relief programs, strengthens the integrity of the SBA, and protects hardworking Americans’ tax dollars. I’m proud to see this bill pass the House with bipartisan support, and I remain committed to ensuring that those who abused these funds are brought to justice.”
The Small Business Administration (SBA) Office of Inspector General estimates that about $200 billion in illegitimate funds were distributed through SBA COVID Programs. Two programs in particular—the Restaurant Revitalization Fund and Shuttered Venue Operators Grant—were created to help businesses affected by lockdowns but became targets for fraud.
While many small businesses received necessary aid from these programs during the pandemic, authorities have noted significant exploitation by individuals seeking improper loans and grants. The new legislation extends the statute of limitations for prosecuting fraud related to these two programs from five years to ten years. This extension is intended to give prosecutors more time to investigate and take legal action against those who defrauded taxpayers.
