Assisting Small Businesses Not Fraudsters Act

Floor Speech

Mr. Speaker, I am pleased to be here today as we debate the first set of Committee on Small Business bills. Our committee has a long tradition of putting politics aside to deliver for our Nation's small business employers.

Small businesses employ roughly half of the private workforce, create the majority of new jobs, drive innovation, and generate almost half of our Nation's economic activity. They are the heart and soul of our communities. Whether it is a neighborhood childcare center, or a bakery on Main Street, they are creating neighborhood jobs and reinvesting in the local economies.

More than 21 million small businesses were launched during the previous administration, with a vast majority of the applications being filed by women, including women of color. This is a clear indicator of positive growth and strong entrepreneurial activity, but more work needs to be done.

Today, we are considering seven bipartisan bills that will create additional opportunities for entrepreneurs.

Mr. Speaker, my hope is that we can work together to conduct oversight of the Trump administration's policies. I have been particularly troubled by the pauses in Federal funding to small businesses, inflationary tariffs, and Elon Musk's access to the SBA's HR, contract, and payment systems. I welcome the opportunity to look into these matters in a bipartisan way.

Mr. Speaker, turning to our first bill, H.R. 825 will prohibit anyone convicted of defrauding the government during the COVID-19 pandemic from receiving an SBA loan.

The Small Business Administration disbursed approximately $1.2 trillion in economic aid during the pandemic. The vast majority of this aid served as a lifeline, helping to keep small businesses afloat during troubling and uncertain economic times.

Unfortunately, bad actors took advantage of the program early in the pandemic when SBA removed or weakened internal controls. Upon taking office, the Biden administration reinstituted longstanding antifraud controls and put new safeguards into place to curb the flow of pandemic dollars to fraudsters.

Before issuing a loan, the SBA would screen applicants on the government's Do Not Pay list and then check its internal database for fraudulent flags or holds. Borrowers had an opportunity to clear their names, but the SBA did not move forward until the holds were cleared.

The bill we are considering today has the same effect as the actions taken by the Biden administration, and it sends a strong message that SBA will not do business with anyone who defrauded the government.

Mr. Speaker, the single most important action that Congress can take to recover fraudulent pandemic funds is to fully fund the inspector general and give the office the resources it needs to go after the bad actors.

Former Representative Luetkemeyer and I sponsored two bills, which became law, to extend the statute of limitations for fraud in the PPP and the EIDL program to 10 years. Without additional resources, the OIG will not be able to capitalize on these new laws, and American taxpayers will lose out.

In closing, I appreciate the bipartisan work of Chairman Williams, and Representatives Simon and Mfume.

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

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Ms. VELAZQUEZ. Simon).

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Ms. VELAZQUEZ. Mr. Speaker, I gladly rise in support of this legislation, and I yield back the balance of my time.

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