Sba Fraud Enforcement Extension Act

Floor Speech

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Mr. DOWNING. 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.

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