[Congressional Record Volume 171, Number 200 (Monday, December 1, 2025)]
[House]
[Pages H4914-H4916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SBA FRAUD ENFORCEMENT EXTENSION ACT
Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and
[[Page H4915]]
pass the bill (H.R. 4495) to extend the statute of limitations for
fraud under certain pandemic programs, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4495
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 ``SBA Fraud Enforcement
Extension Act''.
SEC. 2. STATUTE OF LIMITATIONS FOR CERTAIN PROGRAMS.
(a) Shuttered Venue Operators.--Section 324 of division N
of the Consolidated Appropriations Act, 2021 (15 U.S.C.
9009a) is amended by adding at the end the following:
``(g) Statute of Limitations.--Notwithstanding any other
provision of law, any criminal prosecution or civil
enforcement action for a violation of, or conspiracy to
violate, section 371, 641, 1001, 1028A, 1029, 1341, 1343,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any grant for shuttered venue operators under this
section shall be filed not later than 10 years after the date
of the violation or conspiracy.''.
(b) Restaurant Revitalization.--Section 5003 of the
American Rescue Plan Act of 2021 (15 U.S.C. 9009c) is amended
by adding at the end the following:
``(d) Statute of Limitations.--Notwithstanding any other
provision of law, any criminal prosecution or civil
enforcement action for a violation of, or conspiracy to
violate, section 371, 641, 1001, 1028A, 1029, 1341, 1343,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any restaurant revitalization grant under this
section shall be filed not later than 10 years after the date
of the violation or conspiracy.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Williams) and the gentleman from California (Mr. Cisneros)
each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. WILLIAMS of Texas. 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 bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 4495, the SBA Fraud
Enforcement Extension Act, a companion piece of legislation to S. 1199,
introduced by Senator Ernst.
H.R. 4495 is bipartisan legislation introduced by the gentleman from
Montana (Mr. Downing) and the gentleman from New Jersey (Mr. Conaway).
For 4 years, the Biden administration's SBA failed to address over
$200 billion in COVID-19 era fraud. H.R. 4495 extends the soon-to-
expire statute of limitations for two pandemic-era relief programs: The
Shuttered Venue Operators Grant and the Restaurant Revitalization Fund.
The statute of limitations for these programs is set to expire this
December.
These two programs combined provided over $44 billion in grants and
funding for small businesses during the pandemic. Unfortunately,
fraudsters stole COVID relief funds from small businesses across the
country. These fraudsters hope that the statute of limitations for
their crimes will pass, allowing them to skirt justice.
As Congress, we cannot let this happen. American taxpayer dollars
should be protected at all costs.
In the 117th Congress, we took similar action to extend the statute
of limitations under the Paycheck Protection Program and the COVID EIDL
program. Today, we have the chance to close this final loophole so that
fraudsters do not get away with defrauding American taxpayers and
entrepreneurs.
This legislation sends a clear message that the era of taking
advantage of the American taxpayer is simply over.
Mr. Speaker, I urge my colleagues to support H.R. 4495, and I reserve
the balance of my time.
Mr. CISNEROS. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of H.R. 4495, the SBA Fraud Enforcement
Extension Act. This bill builds off the work done by Ranking Member
Velazquez in a previous Congress. That bill extended the statute of
limitations for investigating fraud in the PPP and EIDL programs.
All of the major pandemic relief programs, including the Shuttered
Venues Operators Grant Program and Restaurant Revitalization Fund, will
have extended statutes of limitations from 5 years to 10 years because
of this bill.
Passing this bill into law will send a strong message to fraudsters
that their behavior will not be tolerated, and those who committed
fraud will be held accountable in the years to come.
The pandemic upended regular SBA operations, and the agency executed
14 years of lending in 14 days to keep small businesses afloat. While
these programs helped millions of small businesses, the implementation
was not without its flaws.
As we now know, potential fraud could range from $36 billion up to
$200 billion. While the exact number will never be known, we do know
that the vast majority of that fraud came in the first 9 months under
the first Trump administration.
Recognizing the potential for fraud, the Biden administration
instituted strong upfront controls for RRF and SVOG. To date, the
Office of the Inspector General's work has resulted in charges against
25 individuals, 14 criminal convictions, and more than $61 million in
recoveries.
Now, the OIG has 31 open RRF cases and 6 open SVOG cases. While
modest in number, these cases are complex, involving layered
transactions, false documentation, and financial concealment. These
cases will take time to investigate and prosecute, and we owe it to the
experts doing the work to give them the tools they need.
Extending the statute of limitations is only part of the equation. We
must provide full funding to the Office of the Inspector General so
that they have the resources to root out the fraud. Moreover, we need
to ensure proper staffing at the SBA to review the 1,892 active SVOG
awards totaling over $3.2 billion.
Mr. Speaker, with that said, this legislation is a step in the right
direction. I commend Mr. Downing and Mr. Conaway for leading this
effort. We need to make sure that no one gets away with fraud simply
because the clock ran out.
Mr. Speaker, I reserve the balance of my time.
{time} 1430
Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as he may
consume to the gentleman from the great State of Montana (Mr. Downing).
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.
[[Page H4916]]
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.
Mr. CISNEROS. Mr. Speaker, I yield 2 minutes to the gentleman from
the great State of New Jersey (Mr. Conaway).
Mr. CONAWAY. Mr. Speaker, I rise today in support of H.R. 4495, the
SBA Fraud Enforcement Extension Act. I am the co-lead on this
legislation, along with my friend, colleague, and fellow Air Force
veteran, Representative Downing.
During the COVID-19 pandemic, more than 30 million small businesses
were negatively impacted. The Federal Government took action to ensure
that an unprecedented amount of money flowed into small businesses in
the form of grants and loans in order to help them stay afloat.
Over the course of 18 months, the SBA administered four major
programs, which delivered 22.1 million loans and $1.2 trillion in
grants. Although these loans did provide much-needed relief to numerous
small businesses throughout the United States, there were many who
illegally obtained these loans.
The SBA issued a report titled: ``Protecting the Integrity of the
Pandemic Relief Programs.'' It states that there are estimates that $36
billion of the $1.2 trillion in pandemic relief emergency funds were
obtained illegally.
H.R. 4495 would extend the civil and criminal statute of limitations
for violations of, or conspiracy to violate, fraud related to the
Shuttered Venue Operators Grant and the Restaurant Revitalization Fund.
To ensure small businesses can receive the benefits they deserve, it
is important that the SBA is properly funded and staffed. I am
concerned that the cut in the SBA's workforce by 43 percent will impede
the SBA's ability to recover the improper and illegally obtained
payments.
Mr. Speaker, having said that, I urge all of my colleagues to support
this very important legislation. I thank my colleague, Representative
Downing, for allowing me to lead this important piece of legislation
with him.
Mr. WILLIAMS of Texas. Mr. Speaker, I reserve the balance of my time.
Mr. CISNEROS. Mr. Speaker, I will close by thanking Mr. Conaway, Mr.
Downing, and Chairman Williams for their work on ensuring taxpayer
funds are protected from fraudsters. This is a commonsense measure to
rebuild public trust, and I encourage my colleagues to vote ``yes.''
Mr. Speaker, I yield back the balance of my time.
Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support
this commonsense legislation. We cannot let fraudsters get away with
American taxpayer dollars.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Williams) that the House suspend the rules
and pass the bill, H.R. 4495.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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