[Congressional Record Volume 166, Number 100 (Thursday, May 28, 2020)]
[House]
[Pages H2330-H2332]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
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SMALL BUSINESS TRANSPARENCY AND REPORTING FOR THE UNDERBANKED AND
TAXPAYERS AT HOME ACT
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).
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(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.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
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, I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
I rise in reluctant opposition to H.R. 6782, the Small Business
Transparency and Reporting for the Underbanked and Taxpayers at Home
Act, or the TRUTH Act, as amended.
Mr. Speaker, I do want to express my appreciation to Chairwoman
Velazquez and her staff for working with me and with my staff on this
legislation, as well as many other pieces of legislation in the past.
On this specific bill, we were able to negotiate a couple of changes
that made the bill slightly more palatable for those of us on this side
of the aisle, and that would have not happened without the chairwoman's
leadership, so we do appreciate that.
That said, philosophically, it is exceptionally difficult for me and
others on this side of the aisle to accept the bill in its entirety.
For instance, I am a firm believer that small businesses are just that,
small businesses; and as long as they qualify under the Small Business
Act and the SBA size standards, no one small business ought to have to
do anything different under the law than any other small business.
In addition to all the burdensome reporting requirements this
legislation would impose on small businesses, there are two specific
provisions that are difficult for us to support.
First, the bill we have before us attempts to name--and some would
say, shame--businesses that are recent PPP loan recipients above $2
million. And I do appreciate Chairwoman Velazquez going from $250,000
to $2 million.
These businesses--at least the ones that acted in good faith--
followed the law and the guidelines and received their loans based on
the best information available at that time, and I do not believe that
those businesses should be put on public display for potential shaming.
If they didn't follow the rules, we have remedies for calling them
out, such as the SBA's Office of the Inspector General, even the
Department of Justice, to seek out waste, fraud, and abuse. Publicly
naming them will do little to increase transparency or anything else,
for that matter, we believe.
Second, the bill requires, albeit voluntarily, small businesses to
disclose whether they are economically disadvantaged, minority owned,
women owned, or veteran owned. As I mentioned previously, I believe we
ought to be making regulatory burdens fewer and farther between, not
imposing more paperwork that doesn't help any business fight this
pandemic.
Again, Mr. Speaker, I reluctantly oppose this legislation but again
thank the chairwoman for her leadership and willingness to work with us
on these bills and on many issues facing America's small businesses
moving forward.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield as much time as he may consume to
the gentleman from Minnesota (Mr. Phillips), the sponsor of the bill.
Mr. PHILLIPS. Mr. Speaker, I thank Chairwoman Velazquez for yielding.
Mr. Speaker, I rise today to talk about truth.
Now, you would think that truth would not be up for debate in this
Chamber, yet here we stand literally
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debating my bill, the TRUTH Act, which simply injects transparency and
accountability into the very largest expenditure of taxpayer money in
American history.
That is it. There is no hidden agenda, just a straightforward
requirement for the Small Business Administration to publish
information about how Federal relief dollars are flowing and where they
are going. And that truth should be important to every American:
business owners and patrons, bankers and borrowers, Republicans and
Democrats.
We cannot accept a situation in which bigger businesses with access
to other sources of liquidity are pushing to the front of the line at
the expense of those with the greatest need, particularly minority-,
women-, and veteran-owned businesses that are struggling the very most
during the pandemic.
I won't accept it.
I am on a mission to restore Americans' faith in their government.
But trust is earned by action, not by words. So I ask my colleagues to
join me in supporting the TRUTH Act, in allowing the American people to
see where their money is going and in ensuring that businesses that
need relief the most are getting it.
They say that sunlight is the best disinfectant, and we could surely
use more of it here.
Mr. CHABOT. Mr. Speaker, I yield myself the balance of my time. I
want to thank the gentlewoman from New York (Ms. Velazquez) on her
leadership, and I regret that we cannot support this particular piece
of legislation; however, I am certain that we will continue to work
together in a bipartisan manner to address the needs of America's small
businesses.
I would note, just in response, briefly, to the gentleman's mention
that this is called the TRUTH Act, just because something is called the
TRUTH Act doesn't necessarily mean that it is the truth, just like
something called the Affordable Care Act doesn't necessarily mean it is
going to make healthcare more affordable.
Mr. Speaker, I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
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.
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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.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 6782, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROY. Mr. Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3 of House Resolution
965, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this question
are postponed.
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