Small Business Transparency and Reporting for the Underbanked and Taxpayers At Home Act

Floor Speech

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Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6782) to require the Administrator of the Small Business Administration to submit a report on recipients of assistance under the paycheck protection program and the economic injury disaster loan program, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 6782

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home Act'' or the ``TRUTH Act''. SEC. 2. REPORT.

Not later than 30 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall make publicly available, in an online format that is sortable and searchable for key words and downloadable (to the extent technically practicable), the following information with respect to the paycheck protection program and the economic injury disaster loan program:

(1) An identification of each recipient of assistance in an amount greater than $2,000,000 from funds appropriated under the CARES Act (Public Law 116-136) or the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139).

(2) An explanation of the decision-making processes under which such funds were disbursed.

(3) The number of employees of each entity that received such assistance.

(4) The date on which such assistance was disbursed.

(5) An identification of each lender or intermediary through which such assistance was disbursed.

(6) The amount of assistance provided to small business concerns owned and controlled by socially and economically disadvantaged individuals (as defined in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)), small business concern owned and controlled by women (as defined under section 3(n) of such Act (15 U.S.C. 632(n)), and small business concern owned and controlled by veterans (as defined in section 3(q) of such Act (15 U.S.C. 632(q)), from information voluntarily provided by such concerns. SEC. 3. COMMITMENTS FOR 7(A) LOANS.

Notwithstanding any other provision of law, the amounts authorized for commitments for general business loans authorized under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) under the heading ``business loans program account'' under the heading ``Small Business Administration'' under title V of the Consolidated Appropriations Act, 2020 (Public Law 116-93; 133 Stat. 2475) shall apply with respect to loans made under such section 7(a), other than loans made under paragraph (36) of such section 7(a), on and after the date of enactment of this Act.

Mr. Speaker, I rise in support of the bill before us today, H.R. 6782, the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home Act, or the TRUTH Act.

The CARES Act and the Paycheck Protection Program and Health Care Enhancement Act provided over $725 billion in relief to nonprofits, small businesses, and the independently employed who are struggling to cope with the economic downturn brought about by the spread of COVID- 19.

By utilizing the SBA's Economic Injury Disaster Loan Program and creating the Paycheck Protection Program, Congress took swift action to provide a necessary lifeline. And while both programs have saved countless livelihoods, jobs, and businesses, millions more remain left out.

Unfortunately, it won't matter how much money Congress spends to address these problems if Congress cannot track where the money is going to verify that it is reaching the families and businesses that need it most.

To that end, my colleagues and I have sent multiple oversight letters to SBA requesting detailed data and information on the implementation of the Paycheck Protection Program and Economic Injury Disaster Loans. To date, we have not received anything more than what SBA has published on their website. This is simply unacceptable.

It is vital that the administration be transparent and good stewards of taxpayers' dollars. I am proud to support the bipartisan effort before us today, led by my esteemed colleagues Mr. Phillips of Minnesota and Mr. Fitzpatrick of Pennsylvania.

The bill requires SBA to publish an online database of the recipients of PPP and EIDL loans over $2 million. It would also list the number of employees at each business benefiting from this assistance and the amount of funds provided to underserved businesses.

This is precisely the kind of data Congress needs to ensure that the programs are being administered as intended and, more importantly, to ensure the scarce funds are reaching those communities and businesses that need it most.

Furthermore, the bill includes language that will decouple the 7(a) loan program and Paycheck Protection Program accounts.

Currently, both programs share the same appropriations account, meaning that once the Paycheck Protection Program appropriation lapses, the 7(a) loan program will shut down along with it. It was never congressional intent to tie the future of both programs together, so in order to preserve the sustainability of the 7(a) loan program, it is necessary to decouple the two accounts.

At a time when the future of the small business economy is so uncertain, it is of top importance to ensure the long-term sustainability of the 7(a) loan program. This language achieves that goal.

I applaud the bipartisanship and, more importantly, the commitment to being good stewards of the taxpayers' dollars.

Mr. Speaker, I urge all my colleagues, Republican and Democrat, to join me in voting for stronger transparency and oversight of the CARES Act programs. Our hardworking small business owners and the American people deserve no less.

Mr. Speaker, when this body spent trillions of dollars to address the economic downturn brought about by COVID-19, we included a special inspector general to provide oversight over the expenditure of these dollars. Unfortunately, President Trump said the special IG could not issue reports to Congress without Presidential supervision and subsequently removed the acting IG at the Pentagon and chairman of the panel.

So with the erosion of accountability, transparency is needed more than ever. Congress needs to ensure that there is no waste, fraud, or abuse of taxpayers' dollars.

This data collection and transparency bill is a positive step in that direction, providing much-needed transparency and accountability. Knowledge is power and, with this bill, the public will finally have the knowledge on how these programs have been implemented, where the money has gone, who has gotten it and who hasn't.

Not only will this empower the people, it will empower Congress as we continue working to optimize the CARES Act programs.

The bill also clarifies the program accounts for the Paycheck Protection Program and the 7(a) Loan Program are wholly distinct, ensuring that the SBA's flagship lending program will not shut down when the Paycheck Protection Program appropriation lapses.

As the small business economy begins to recover in the coming weeks and months, small businesses need to be able to access affordable capital to rehire workers, restock their shelves, and resume operations. This language ensures the 7(a) program will be an option for them in the next phase of recovery.

I urge my colleagues to support this measure, and I yield back the balance of my time.

Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 6782, the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home Act or TRUTH Act, which directs the Small Business Administration (SBA) to explain and justify all disbursements of coronavirus relief funds, ensuring transparency and accountability from this critical agency.

Together, the CARES Act and the Payroll Protection Program and Health Care Enhancement Act together allocated more than $2 trillion to address the devastating coronavirus pandemic, the most expensive relief package ever authorized by Congress, and the largest outlay of taxpayer funds in all human history.

The stakes simply are too high to allow irresponsible stewardship, and those charged with disbursing coronavirus relief funds must be held to the highest standards and held to account for misfeasance or malfeasance.

Mr. Speaker, it is wholly unacceptable that the SBA has not to date provided full transparency over its administration of the Payroll Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL).

PPP and EIDL were created by Congress to provide relief for small businesses affected by the pandemic, and more than $700 billion has been allocated in service of those goals.

However, in too many cases the programs did not function as Congress intended, and large organizations such as the Los Angeles Lakers received funding while many of our smallest and most vulnerable businesses were unable to secure assistance.

In light of this mismanagement, it is imperative that SBA be subject to an exhaustive audit of its handling of PPP and EIDL funding.

The agency has refused to do so voluntarily, requiring Congress to mandate compliance from the agency that exists to serve small business, the backbone of the American economy.

The TRUTH Act would require the SBA to make the following information publicly available in an online, searchable, sortable, and downloadable format within 30 days of passage:

1. The identity of every recipient of a grant or loan that was funded by the CARES Act or the Payroll Protection Program and Health Care Enhancement Act;

2. An explanation of the SBA's decision-making process;

3. The number of employees at the entity in question;

4. The date when the grant or loan was disbursed;

5. The identification number of the bank or lender that administered the grant or loan; and

6. The amount of assistance provided to small businesses owned by socially and economically disadvantaged individuals, women, and veterans.

Mr. Speaker, the COVID-19 pandemic has challenged us in ways we could have scarcely imagined; it has claimed lives and destroyed livelihoods all across our nation.

We are in this together and we will come out stronger and better.

And we do that by caring for each other and rendering equal, justice and fairness, whether it is in the area of coronavirus testing, distribution of PPE, or economic assistance.

Our small businesses need help and they need the truth, which is why I urge my colleagues to join me in voting to pass H.R. 6782, the TRUTH Act.

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