Returning Erroneous Covid Loans Addressing Illegal and Misappropriated Taxpayer Funds Act

Floor Speech

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Mr. McGARVEY. Mr. Speaker, I rise today in support of H.R. 4667, the RECLAIM Taxpayer Funds Act, which I am proud to co-lead alongside Representative Salazar. I am grateful for her partnership on this bipartisan bill, and I am glad to see it come to the floor today.

Small businesses are the backbone of the American economy. That is definitely true in my hometown of Louisville, Kentucky, and was on full display this past weekend as Louisvillians were encouraged to shop local and go and see our wonderful small business community.

As I visited small businesses from Saint Matthews to NuLu to West Louisville, I reflected on where we were, where these small businesses were just a few short years ago. I was reminded of earlier this year when we had Small Business Administrator Guzman come to Louisville and meet with small business owners from across my district.

We had listening sessions, and we heard the same message over and over again. That is what these businessowners told us. They told us they wouldn't be here today because they wouldn't have survived the pandemic if it weren't for the Paycheck Protection Program and other COVID relief programs.

PPP worked. It worked. It was a success. It is the reason we still have towns across this country full of vibrant, independent, local business. Nevertheless, in order to get that money out the door as quickly as possible, the previous administration loosened the guardrails designed to prevent fraud. That opened the door for bad actors to take advantage of the program.

There were people who flatout lied to obtain PPP loans. There were others who received more than they deserved; some who received more even through good-faith errors.

Mr. Speaker, we need to get that money back. That is why the Department of Justice and the SBA are working to prosecute those who took advantage of the program and recover stolen funds.

To date, there have been hundreds of arrests and convictions related to COVID relief fraud, and they have recovered billions of dollars.

We must have clear processes in place as this money comes back to lenders and to the SBA. That is why this bill requires the SBA to issue guidance and rules for lenders, for borrowers, and for the SBA itself on handling PPP loans that are returned.

H.R. 4667 is a commonsense bill that will establish these clear rules for the road and ensure that taxpayer dollars do not go to waste. It is a necessary step in the right direction as we continue our recovery from the pandemic.

I thank Chairman Williams, Ranking Member Velazquez, and Congresswoman Salazar for their leadership and support of this bill, and I urge my colleagues to support H.R. 4667.

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