[House Report 117-515]
[From the U.S. Government Publishing Office]


117th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {     117-515

======================================================================

 
   RESOLUTION OF INQUIRY DIRECTING THE SECRETARY OF THE TREASURY TO 
TRANSMIT CERTAIN DOCUMENTS TO THE HOUSE OF REPRESENTATIVES RELATING TO 
 THE ROLE OF THE DEPARTMENT OF THE TREASURY IN THE PAYCHECK PROTECTION 
              PROGRAM OF THE SMALL BUSINESS ADMINISTRATION

                                _______
                                

 September 28, 2022.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                      [To accompany H. Res. 1298]

    The Committee on Small Business, to whom was referred the 
resolution (H. Res. 1298) of inquiry directing the Secretary of 
the Treasury to transmit certain documents to the House of 
Representatives relating to the role of the Department of the 
Treasury in the Paycheck Protection Program of the Small 
Business Administration, having considered the same, reports 
thereon with amendments and without recommendation.

                                CONTENTS

                                                                     Page
   I. Purpose and Summary.............................................  2
  II. Background and Need for Legislation.............................  3
 III. Hearings........................................................  6
  IV. Committee Consideration.........................................  6
   V. Committee Votes.................................................  6
  VI. Section-by-Section for H. Res. 1298.............................  9
 VII. Congressional Budget Cost Estimate..............................  9
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditur  10
  IX. Committee Oversight Findings and Recommendations...............  10
   X. Statement of General Performance Goals and Objectives..........  10
  XI. Duplication of Federal Programs................................  10
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff  
      Benefits.......................................................  10
XIII. Federal Mandates Statement.....................................  11
 XIV. Federal Advisory Committee Statement...........................  11
  XV. Applicability to Legislative Branch............................  11
 XVI. Changes in Existing Law Made by the Bill, as Reported..........  11
XVII. Supplemental, Additional, Dissenting, or Minority Views........  11

    The amendments are as follows:
  In the matter preceding paragraph (1), strike ``with respect 
to'' and all that follows through ``including''.

  In paragraph (1), insert ``with respect to the loan programs 
established under paragraphs (36) and (37) of section 7(a) of 
the Small Business Act (15 U.S.C. 636(a)(36)) (commonly known 
as the `Paycheck Protection Program'),'' before ``all such''.

  In paragraph (2)--
          (1) insert ``with respect to the loan programs 
        established under paragraphs (36) and (37) of section 
        7(a) of the Small Business Act (15 U.S.C. 636(a)(36)) 
        (commonly known as the `Paycheck Protection 
        Program'),'' before ``all such''; and
          (2) strike ``and'' at the end.

  In paragraph (3)--
          (1) insert ``with respect to the loan programs 
        established under paragraphs (36) and (37) of section 
        7(a) of the Small Business Act (15 U.S.C. 636(a)(36)) 
        (commonly known as the `Paycheck Protection 
        Program'),'' before ``all such''; and
          (2) strike the period at the end and inserting ``;''.

  Add at the end the following new paragraphs:

          (4) with respect to loans made under section 7(b) of 
        the Small Business Act (15 U.S.C. 636(b)) in response 
        to COVID-19, from grants under section 1110(e) of the 
        CARES Act (15 U.S.C. 9009(e)), from grants under 
        section 331 of the Economic Aid to Hard-Hit Small 
        Businesses, Nonprofits, and Venues Act (15 U.S.C. 
        9009b), and from grants under section 5003 of the 
        American Rescue Plan Act of 2021, all documents and 
        communications relating to the amount of funds from 
        such loans or grants that have been recovered from any 
        individual or entity that fraudulently obtained such a 
        loan or grant; and
          (5) with respect to actions taken by the Department 
        of the Treasury on and after January 21, 2021, to 
        assist small business concerns (as defined under 
        section 3 of the Small Business Act (15 U.S.C. 632)) 
        with addressing government regulations, and all such 
        communications between the Secretary of the Treasury 
        and the Administrator of the Small Business 
        Administration relating to any guidance the 
        Administration offered Treasury in targeting regulatory 
        assistance to small business concerns.
    Amend the title so as to read: Resolution of inquiry 
directing the Secretary of the Treasury to transmit certain 
documents to the House of Representatives relating to the role 
of the Department of the Treasury in the Paycheck Protection 
Program of the Small Business Administration and with respect 
to regulatory assistance for small business concerns.

                         I. PURPOSE AND SUMMARY

    House Resolution 1298, as amended, is a resolution of 
inquiry directing the Secretary of Treasury to transmit to the 
House of Representatives, not later than 14 legislative days 
after the date of the adoption of the resolution, records 
relating to the role of the Department of Treasury in the 
Paycheck Protection Program, other loan and grant programs of 
the Small Business Administration, and regulatory assistance 
for small business concerns.

                II. BACKGROUND AND NEED FOR LEGISLATION

    H. Res. 1298 was introduced by Ranking Member Blaine 
Luetkemeyer (R-MO) on July 28, 2022.

Resolution of inquiry

    A resolution of inquiry is a nonbinding resolution that 
either requests or directs the President or the head of an 
executive department\1\ to furnish the House with factual 
information in the Administration's possession.\2\ There are no 
House rules for enforcing resolutions of inquiry, and they have 
ordinarily been complied with pursuant to principles of comity 
between the Legislative and Executive branches.\3\
---------------------------------------------------------------------------
    \1\The House Parliamentarian does not consider the Small Business 
Administration to be an executive department within the meaning of 
clause 7 of rule XIII of the Rules of the House, however, the 
Department of Treasury is considered to be an executive department.
    \2\Christopher Davis, CRS Insight: Resolutions of Inquiry in the 
House, Cong. Research Serv., July 21, 2022, https://
crsreports.congress.gov/product/pdf/IN/IN10661. Due to the pandemic, 
the deadlines for Committee action on resolutions of inquiry were 
paused, but the pause was lifted after the adoption of H. Res. 1232 on 
July 19, 2022. Id.
    \3\Charles W. Johnson, John V. Sullivan, and Thomas J. Wicker, Jr., 
House Practice: A Guide to the Rules, Precedents, and Procedures of the 
House, Gov't. Printing Office (2017), available at https://
www.govinfo.gov/content/pkg/GPO-HPRACTICE-115/pdf/GPO-HPRACTICE-
115.pdf.
---------------------------------------------------------------------------
    If a resolution of inquiry qualifies as privileged under 
clause 7 of rule XIII of the Rules of the House, a Committee 
has 14 legislative days to markup and file a report on the 
privileged resolution. As to the reporting of the resolution, a 
Committee can make a favorable, adverse, or no recommendation 
determination in the report. To be considered privileged, a 
resolution of inquiry must not only be directed to the 
President or the head of an executive department, but it also 
must not have a preamble, must request only factual 
information, and may not require the official to express an 
opinion or undertake an investigation.\4\
---------------------------------------------------------------------------
    \4\Supra note 2.
---------------------------------------------------------------------------
    Once the resolution of inquiry has been reported, an 
authorized Member of the Committee may call up the resolution 
for consideration.\5\ A Member, not authorized by the 
Committee, may call up the resolution for consideration if the 
Committee fails to report the resolution within the 14-day 
timeframe.\6\ The last resolution of inquiry to reach the House 
floor was in 1995.\7\ Prior to this Congress, the last 
resolution of inquiry to be referred to this Committee was in 
the 103rd Congress in 1994.\8\
---------------------------------------------------------------------------
    \5\Supra note 3.
    \6\Id.
    \7\See H. Res. 80, 104th Cong. (1995).
    \8\See H. Res. 360, 103rd Cong. (1994).
---------------------------------------------------------------------------

Paycheck Protection Program

    The Small Business Administration's (SBA) Paycheck 
Protection Program (PPP) was established in the CARES Act\9\ as 
a subprogram of SBA's 7(a) loan guarantee program. Under PPP, 
banks and other private lenders made fully guaranteed SBA loans 
to small businesses negatively impacted by the COVID-19 
pandemic. The loans were intended to assist small businesses 
with meeting payroll costs and other expenses, and full loan 
forgiveness is offered if loan proceeds are spent on such 
purposes. In total, over $800 billion was appropriated for PPP 
in several pieces of legislation.
---------------------------------------------------------------------------
    \9\Pub. L. No. 116-136.
---------------------------------------------------------------------------
    However, the initial tranche of PPP funding favored larger, 
better-capitalized businesses, and left out microbusinesses and 
many firms owned by women and minorities. To address this 
disparity, the PPP and Health Care Enhancement Act\10\ included 
set-asides of newly appropriated PPP funds so that community 
lending institutions, including Community Development Financial 
Institutions (CDFIs), SBA Certified Development Companies 
(CDCs), and SBA Microloan Intermediaries could participate in 
the program alongside large banks. These set-asides, as well as 
other policy changes made by SBA and Treasury, were intended to 
maximize PPP lending in traditionally underserved business 
communities.\11\
---------------------------------------------------------------------------
    \10\Pub. L. No. 116-139.
    \11\See, e.g., U.S. Small Bus. Admin., CARES Act Section 1102 
Lender Agreement--Non-Bank and Non-Insured Depository Institution 
Lenders, SBA Form 3507 (04/21), https://home.treasury.gov/system/files/
136/SBA-Form-3507-PPP--Agreement-for-New-Lenders-Non-Bank-Non-Insured-
Depository-Institution-Lenders.pdf; see also, U.S. Small Bus. Admin., 
Interim Final Rule on Corporate Groups and Non-Bank and Non-Insured 
Depository Institution Lenders (originally posted 4/30/2020), (Apr. 30, 
2020), https://home.treasury.gov/system/files/136/IFR--Corporate-
Groups-and-Non-Bank-and-Non-Insured-Depository-Institution-Lenders.pdf.
---------------------------------------------------------------------------
    In the beginning of the program, fraud prevention 
safeguards were lowered in order to distribute loan funds more 
quickly. So far, SBA's Office of Inspector General (OIG) has 
identified 70,835 loans totaling over $4.6 billion in 
potentially fraudulent PPP loans.\12\ The Department of 
Treasury, under the leadership of former Secretary Steven 
Mnuchin, was instrumental in implementing PPP, which included 
ensuring small businesses were getting the assistance they 
needed while making sure that taxpayer dollars were protected. 
In particular, section 1109 of the CARES Act authorized the 
Department of Treasury to include additional lending 
institutions as part of PPP, and to issue regulations and 
guidance as necessary to implement PPP.\13\
---------------------------------------------------------------------------
    \12\U.S. Small Bus. Admin. Off. of Inspector Gen., Top Management 
and Performance Challenges Facing the Small Business Administration in 
Fiscal Year 2022, (Oct. 15, 2021), https://www.sba.gov/sites/default/
files/2021-10/SBA%20OIG%20Report%2022-02.pdf.
    \13\Supra note 9 at Sec. 1109.
---------------------------------------------------------------------------
    Moreover, PPP was designed not only to keep businesses from 
closing but also to keep workers employed. There are still 
outstanding academic debates as to the extent of PPP's positive 
impact on employment. According to the Brookings Institution, a 
considerable portion of PPP funding was used for businesses to 
pay down debt instead of sustain payroll.\14\ Also, the 
academic literature has shown no credible evidence that the 
largest PPP loans had a substantial positive employment effect 
in the short or medium run.\15\ Furthermore, researchers with 
the Federal Reserve Bank of Boston found that PPP would have 
been ``significantly more effective'' if the government 
allocated loans to the smallest firms earlier in the 
program.\16\
---------------------------------------------------------------------------
    \14\Wendy Edelberg Et al., Brookings Institution, Recession 
Remedies: Lessons Learned From the U.S. Economic Policy Response to 
COVID-19 140 (2022), https://www.brookings.edu/wp-content/uploads/2022/
04/RR-Chapter-4-Support-for-Business.pdf.
    \15\Id. at 124.
    \16\Gustavo Joaquim and Felipe Netto, Optimal Allocation of Relief 
Funds: The Case of the Paycheck Protection Program, Federal Reserve 
Bank of Boston (Oct. 2021), https://www.bostonfed.org/publications/
research-department-working-paper/2021/optimal-allocation-of-relief-
funds-the-case-of-the-paycheck-protection-program.aspx.
---------------------------------------------------------------------------
    Currently, PPP is in the forgiveness phase of the program. 
The Committee is actively monitoring the status of loan 
forgiveness. As of September 5, 2022, SBA made over 10.4 
million full or partial forgiveness payments, representing 91 
percent of all PPP loans.\17\ These payments total over $751 
billion in PPP lending, representing 95 percent of total PPP 
volume. However, PPP forgiveness data reveals a burgeoning 
small-dollar forgiveness gap. As of September 5, 2022, 892,463 
PPP borrowers have not submitted forgiveness applications.\18\ 
Of these non-submissions, 848,738 are loans $50,000 or less, 
representing over 95 percent of all non-submissions.
---------------------------------------------------------------------------
    \17\U.S. Small Bus. Admin., Forgiveness Platform Lender Submission 
Metrics--September 05, (Sep. 5, 2022), https://www.sba.gov/sites/
default/files/2022-09/2022.09.05_Weekly%20Forgiveness%20Report_Public-
508.pdf.
    \18\Id.
---------------------------------------------------------------------------

Secretary of Treasury

    To increase the Committee's oversight of PPP, section 
321(b) of the Economic Aid to Hard-Hit Small Business, 
Nonprofits, and Venues Act, 15 U.S.C. Sec. 639b(b),\19\ 
required the Secretary of the Treasury and the SBA 
Administrator to testify before the House Small Business 
Committee within 120 days of enactment of the Act, and not less 
than twice per year for the next two years. Since the enactment 
of the Act in December 2020, SBA Administrator Isabella Guzman 
has appeared before the House Small Business Committee three 
times,\20\ but attempts to have Treasury Secretary Janet Yellen 
testify before the Committee during the 117th Congress have 
been unsuccessful.
---------------------------------------------------------------------------
    \19\Pub. L. No. 116-260 [hereinafter, Economic Aid Act]. On July 
17, 2020, Treasury Secretary Steven Mnuchin and SBA Administrator 
Jovita Carranza testified before the House Small Business Committee. 
See the H. Comm. on Small Business, 116th Cong. (Jul. 17, 2020).
    \20\An Examination of the SBA's Covid-19 Programs: Hearing Before 
the H. Comm. on Small Business, 117th Cong. (May 26, 2021); A 
Discussion with SBA Administrator Isabella Casillas Guzman: Hearing 
Before the H. Comm. on Small Business, 117th Cong. (Nov. 16, 2021); 
Small Business Administration's FY 2023 Budget: Hearing Before the H. 
Comm. on Small Business, 117th Cong. (Apr. 27, 2022).
---------------------------------------------------------------------------
    It is necessary for the Committee's oversight of this 
multibillion-dollar program for the Secretary of Treasury to 
testify before the Committee on the merits and operation of the 
program, as required by law. The Committee is disappointed that 
the Secretary of Treasury failed to adhere to her obligations 
under the Economic Aid Act. The Committee continues to be in 
touch with the Department of Treasury regarding the Secretary's 
obligation to testify before the Committee.
    It is important to note that the SBA Administrator and her 
team have also made themselves available for personal calls 
with the Chair, the Ranking Member, and other Members on the 
Committee. Her Associate Administrator of Capital Access, 
Patrick Kelly has also testified before Congress on SBA's covid 
relief programs, including on the Restaurant Revitalization 
Fund, COVID EIDL, and the Shuttered Venue Operators Grant 
program, and provided answers in testimony and off the record 
meetings.

Amendments

    H. Res. 1298 was reported to the House with two amendments. 
The first adopted amendment was offered by Representative Van 
Duyne (R-TX). The amendment requests all documents and 
communications relating to the total amount of funding 
recovered from fraudulently obtained COVID-19 relief, 
specifically COVID EIDLs, EIDL Advances, Targeted Advances, and 
the Restaurant Revitalization Fund. The second adopted 
amendment was offered by Representative Meuser (R-PA). The 
amendment requests all documents and communications relating to 
Treasury's actions to assist small businesses with addressing 
the impact of federal regulations.

Without recommendation

    The Committee is generally not opposed to the H. Res. 1298, 
especially due to the failure of the Secretary to testify 
before the Committee, as required by law, and the opportunity 
to get a clearer picture of the policies Treasury, specifically 
under former Secretary Mnuchin, could have instituted to ensure 
that these PPP loans were distributed equitability in the 
beginning of the program. However, the Committee continues to 
conduct rigorous oversight of the program, which is why the 
Committee believes this resolution is not needed. In fact, this 
Committee came together to pass two commonsense bills to help 
investigators hold bad actors accountable by extending the 
statute of limitations related to the PPP and COVID EIDL 
programs at SBA to 10 years.\21\ Those bills were a direct 
result of the Committee's oversight work and dedication to 
evaluating the effectiveness of covid programs. Due to these 
facts, the Committee recommended that H. Res. 1298 be reported 
to the House without recommendation.
---------------------------------------------------------------------------
    \21\See PPP and Bank Fraud Enforcement Harmonization Act of 2022, 
Pub. L. No. 117-166, and COVID-19 EIDL Fraud Statute of Limitations Act 
of 2022, Pub. L. No. 117-165.
---------------------------------------------------------------------------

                             III. HEARINGS

    The Committee held no hearings on H. Res. 1298.

                      IV. COMMITTEE CONSIDERATION

    The Committee on Small Business met in open session, with a 
quorum being present, on September 21, 2022, and ordered H. 
Res. 1298, as amended, reported to the House of Representatives 
without recommendation by a record vote of 25 yeas and 0 nays.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives, the following are summaries of the recorded 
votes of the Committee on Small Business in its consideration 
of H. Res. 1298 on September 21, 2022.

                     MOTION TO REPORT H. RES. 1298

    H. Res. 1298, as amended, was ordered transmitted without 
recommendation to the House of Representatives by a roll call 
vote of 25 yeas to 0 nays (with a quorum being present). The 
vote was as follows:

------------------------------------------------------------------------
       Majority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Ms. Velazquez, Chairwoman.....            X   ............  ............
Mr. Jared Golden..............            X   ............  ............
Mr. Jason Crow................            X   ............  ............
Ms. Sharice Davids............            X   ............  ............
Mr. Kweisi Mfume..............            X   ............  ............
Mr. Dean Phillips.............            X   ............  ............
Ms. Marie Newman..............  ............  ............            X
Ms. Carolyn Bourdeaux.........            X   ............  ............
Mr. Troy Carter...............            X   ............  ............
Ms. Judy Chu..................            X   ............  ............
Mr. Dwight Evans..............            X   ............  ............
Ms. Chrissy Houlahan..........            X   ............  ............
Mr. Andy Kim..................            X   ............  ............
Ms. Angie Craig...............            X   ............  ............
Mr. Scott Peters..............            X   ............  ............
------------------------------------------------------------------------


------------------------------------------------------------------------
       Minority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Mr. Blaine Luetkemeyer,                   X   ............  ............
 Ranking Member...............
Mr. Roger Williams............            X   ............  ............
Mr. Pete Stauber..............            X   ............  ............
Mr. Dan Meuser................            X   ............  ............
Ms. Claudia Tenney............            X   ............  ............
Mr. Andrew Garbarino..........            X   ............  ............
Ms. Young Kim.................            X   ............  ............
Ms. Beth Van Duyne............            X   ............  ............
Mr. Byron Donalds.............            X   ............  ............
Ms. Maria Salazar.............  ............  ............            X
Mr. Scott Fitzgerald..........            X   ............  ............
Mr. Mike Flood................  ............  ............  ............
------------------------------------------------------------------------

                          VOTES ON AMENDMENTS

    Van Duyne 1v2 was agreed to by a roll call vote of 17 yeas 
to 4 nays.

------------------------------------------------------------------------
       Majority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Ms. Velazquez, Chairwoman.....  ............            X   ............
Mr. Jared Golden..............  ............            X   ............
Mr. Jason Crow................            X   ............  ............
Ms. Sharice Davids............            X   ............  ............
Mr. Kweisi Mfume..............  ............  ............            X
Mr. Dean Phillips.............            X   ............  ............
Ms. Marie Newman..............  ............  ............            X
Ms. Carolyn Bourdeaux.........            X   ............  ............
Mr. Troy Carter...............  ............  ............            X
Ms. Judy Chu..................  ............            X   ............
Mr. Dwight Evans..............  ............            X   ............
Ms. Chrissy Houlahan..........            X   ............  ............
Mr. Andy Kim..................            X   ............  ............
Ms. Angie Craig...............            X   ............  ............
Mr. Scott Peters..............            X   ............  ............
------------------------------------------------------------------------


------------------------------------------------------------------------
       Minority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Mr. Blaine Luetkemeyer,                   X   ............  ............
 Ranking Member...............
Mr. Roger Williams............            X   ............  ............
Mr. Pete Stauber..............            X   ............  ............
Mr. Dan Meuser................            X   ............  ............
Ms. Claudia Tenney............            X   ............  ............
Mr. Andrew Garbarino..........  ............  ............            X
Ms. Young Kim.................            X   ............  ............
Ms. Beth Van Duyne............            X   ............  ............
Mr. Byron Donalds.............  ............  ............            X
Ms. Maria Salazar.............  ............  ............            X
Mr. Scott Fitzgerald..........            X   ............  ............
Mr. Mike Flood................  ............  ............  ............
------------------------------------------------------------------------

    Meuser 1v2 was agreed to by a roll call vote of 12 yeas to 
8 nays.

------------------------------------------------------------------------
       Majority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Ms. Velazquez, Chairwoman.....  ............            X   ............
Mr. Jared Golden..............            X   ............  ............
Mr. Jason Crow................  ............            X   ............
Ms. Sharice Davids............  ............            X   ............
Mr. Kweisi Mfume..............  ............  ............            X
Mr. Dean Phillips.............            X   ............  ............
Ms. Marie Newman..............  ............  ............            X
Ms. Carolyn Bourdeaux.........  ............            X   ............
Mr. Troy Carter...............  ............  ............            X
Ms. Judy Chu..................  ............            X   ............
Mr. Dwight Evans..............  ............            X   ............
Ms. Chrissy Houlahan..........            X   ............  ............
Mr. Andy Kim..................  ............            X   ............
Ms. Angie Craig...............            X   ............  ............
Mr. Scott Peters..............  ............            X   ............
------------------------------------------------------------------------


------------------------------------------------------------------------
       Minority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Mr. Blaine Luetkemeyer,                   X   ............  ............
 Ranking Member...............
Mr. Roger Williams............            X   ............  ............
Mr. Pete Stauber..............            X   ............  ............
Mr. Dan Meuser................            X   ............  ............
Ms. Claudia Tenney............            X   ............  ............
Mr. Andrew Garbarino..........  ............  ............            X
Ms. Young Kim.................  ............  ............            X
Ms. Beth Van Duyne............            X   ............  ............
Mr. Byron Donalds.............  ............  ............            X
Ms. Maria Salazar.............  ............  ............            X
Mr. Scott Fitzgerald..........            X   ............  ............
Mr. Mike Flood................            X   ............  ............
------------------------------------------------------------------------

    Williams 1v2 was not agreed to by a roll call vote of 11 
yeas to 11 nays.

------------------------------------------------------------------------
       Majority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Ms. Velazquez, Chairwoman.....  ............            X   ............
Mr. Jared Golden..............  ............            X   ............
Mr. Jason Crow................  ............            X   ............
Ms. Sharice Davids............  ............            X   ............
Mr. Kweisi Mfume..............  ............  ............            X
Mr. Dean Phillips.............  ............            X   ............
Ms. Marie Newman..............  ............  ............            X
Ms. Carolyn Bourdeaux.........  ............            X   ............
Mr. Troy Carter...............  ............  ............            X
Ms. Judy Chu..................  ............            X   ............
Mr. Dwight Evans..............  ............            X   ............
Ms. Chrissy Houlahan..........  ............            X   ............
Mr. Andy Kim..................  ............            X   ............
Ms. Angie Craig...............            X   ............  ............
Mr. Scott Peters..............  ............            X   ............
------------------------------------------------------------------------


------------------------------------------------------------------------
       Minority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Mr. Blaine Luetkemeyer,                   X   ............  ............
 Ranking Member...............
Mr. Roger Williams............            X   ............  ............
Mr. Pete Stauber..............            X   ............  ............
Mr. Dan Meuser................            X   ............  ............
Ms. Claudia Tenney............            X   ............  ............
Mr. Andrew Garbarino..........            X   ............  ............
Ms. Young Kim.................            X   ............  ............
Ms. Beth Van Duyne............            X   ............  ............
Mr. Byron Donalds.............  ............  ............            X
Ms. Maria Salazar.............  ............  ............            X
Mr. Scott Fitzgerald..........            X   ............  ............
Mr. Mike Flood................            X   ............  ............
------------------------------------------------------------------------

    Luetkemeyer 1v1 was not agreed to by a roll call vote of 11 
yeas to 13 nays.

------------------------------------------------------------------------
       Majority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Ms. Velazquez, Chairwoman.....  ............            X   ............
Mr. Jared Golden..............  ............            X   ............
Mr. Jason Crow................  ............            X   ............
Ms. Sharice Davids............  ............            X   ............
Mr. Kweisi Mfume..............  ............            X   ............
Mr. Dean Phillips.............  ............            X   ............
Ms. Marie Newman..............  ............  ............            X
Ms. Carolyn Bourdeaux.........  ............            X   ............
Mr. Troy Carter...............  ............            X   ............
Ms. Judy Chu..................  ............            X   ............
Mr. Dwight Evans..............  ............            X   ............
Ms. Chrissy Houlahan..........            X   ............  ............
Mr. Andy Kim..................  ............            X   ............
Ms. Angie Craig...............  ............            X   ............
Mr. Scott Peters..............  ............            X   ............
------------------------------------------------------------------------


------------------------------------------------------------------------
       Minority Members              Aye           No        Not Voting
------------------------------------------------------------------------
Mr. Blaine Luetkemeyer,                   X   ............  ............
 Ranking Member...............
Mr. Roger Williams............            X   ............  ............
Mr. Pete Stauber..............            X   ............  ............
Mr. Dan Meuser................            X   ............  ............
Ms. Claudia Tenney............            X   ............  ............
Mr. Andrew Garbarino..........            X   ............  ............
Ms. Young Kim.................            X   ............  ............
Ms. Beth Van Duyne............            X   ............  ............
Mr. Byron Donalds.............  ............  ............            X
Ms. Maria Salazar.............  ............  ............            X
Mr. Scott Fitzgerald..........            X   ............  ............
Mr. Mike Flood................            X   ............  ............
------------------------------------------------------------------------

                VI. SECTION-BY-SECTION FOR H. RES. 1298

Section 1

    Directs the Secretary of Treasury, to transmit to the House 
of Representatives, not later than 14 days after the date of 
the adoption of the resolution, any such documents and other 
materials that refer or relate to:
          (1) Communications between the Department of Treasury 
        and the Small Business Administration relating to the 
        Paycheck Protection Program.
          (2) The obligation of the Secretary of the Treasury 
        to testify before the Committee.
          (3) The role of the Secretary of Treasury in 
        administering the Paycheck Protection Program.
          (4) Communications and documents relating to total 
        amount of funding recovered from fraudulently obtained 
        COVID-19 relief, specifically COVID EIDLs, EIDL 
        Advances, Targeted Advances, and the Restaurant 
        Revitalization Fund.
          (5) The actions of the Department of Treasury to 
        assist small business concerns with addressing 
        government regulations.

                VII. CONGRESSIONAL BUDGET COST ESTIMATE

    The Committee has requested but not received a cost 
estimate from the Director of the Congressional Budget Office.

VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
the Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974, the Committee does 
not believe that there will be any additional costs 
attributable to this legislation.
    The resolution does not provide new budget authority, new 
spending authority, new credit authority, or an increase or 
decrease in revenues or tax expenditures and a statement under 
clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a)(1) of the Congressional 
Budget Act of 1974 is not required.

          IX. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
the H. Res. 1298 are incorporated into the descriptive portions 
of this report.

        X. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirements of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H. Res. 1298 is to direct 
the Secretary of Treasury to submit records related to the 
Department of Treasury's role in the management and oversight 
of the Small Business Administration Paycheck Protection 
Program to the House of Representatives.

                  XI. DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H. Res. 1298 is known 
to be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that this measure 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. FEDERAL MANDATES STATEMENT

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairwoman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

               XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

       XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, this resolution makes no changes 
to existing law.

     XVII. SUPPLEMENTAL, ADDITIONAL, DISSENTING, OR MINORITY VIEWS

    Clause 2(c) of rule XIII of the Rules of the House of 
Representatives requires each report by a committee on a public 
matter to include any supplemental, additional, dissenting, or 
minority views submitted pursuant to clause 2(l) of rule XI of 
the Rules of the House of Representatives by one or more 
Members of the Committee. The minority views of members of the 
Committee are as follows:

                             MINORITY VIEWS

    Pursuant to clause 2(l) of rule XI of the Rules of the 
House of Representatives, I am writing to advise of the 
additional views of the Committee on Small Business on House 
Resolution 1298. These views are in addition to any views 
submitted by the Committee's majority members. Disappointingly, 
the Committee majority members opted to report this resolution 
to the House without recommendation. Consequently, the minority 
disagrees with the majority's neutral position on this 
resolution. This objection is discussed in greater detail 
below.
    Under clause 1(q) of rule 10 of the Rules of the United 
States House of Representatives, the Committee on Small 
Business has legislative jurisdiction over the United States 
Small Business Administration (SBA), including financial 
assistance, regulatory matters, paperwork reduction, and the 
participation of small businesses in federal government 
procurement contracts.\22\ Additionally, the Committee has 
continuing jurisdiction to examine any issues that impact 
America's small businesses. This document, accordingly, focuses 
on House Resolution 1298, a resolution of inquiry directing the 
Secretary of the Treasury to transmit certain documents to the 
House of Representatives relating to the role of the Department 
of Treasury in the Paycheck Protection Program of the Small 
Business Administration.
---------------------------------------------------------------------------
    \22\Cheryl L. Johnson, Rules of the House of Representatives, 117th 
Cong. at Rule 10 clause 1(q) (February 2, 2021).
---------------------------------------------------------------------------

                            I. INTRODUCTION

    Crafted by Congress, in consultation with the Department of 
the Treasury and the Small Business Administration (SBA), the 
Paycheck Protection Program (PPP) served as an immediate source 
of relief for small businesses in the early days of the 
pandemic.\23\ As outlined in the CARES Act, the PPP was 
administered and implemented by the SBA and through the 
critical assistance of the Department of the Treasury.\24\ 
Specifically, the Department of the Treasury, under Section 
1109 of the CARES Act, was required to onboard new private 
sector lenders to deliver PPP loans to small businesses and 
other eligible entities.\25\ The two agencies worked 
steadfastly together during the early days of the pandemic, and 
throughout 2020, to ensure dollars reached small businesses and 
their employees swiftly. Likewise, both agency heads testified 
before Congress in 2020 to provide important information on 
this program.\26\
---------------------------------------------------------------------------
    \23\Pub. L. No. 116-136 (2020).
    \24\Id.
    \25\Id at Sec. 1109.
    \26\Oversight of the Small Business Administration and Department 
of Treasury Pandemic Programs Before the House Committee on Small 
Business, 116th Cong. (2020).
---------------------------------------------------------------------------
    In December 2020, Congress passed the Consolidated 
Appropriations Act of 2021.\27\ The Act, which provided 
additional funding to the PPP program, included a testimony 
requirement for both the SBA Administrator and the Secretary of 
the Treasury.\28\ Recognizing the role both agencies would play 
in the implementation of PPP, the Act required each official to 
testify before the House Committee on Small Business not less 
than 120 days after enactment and not less than twice each year 
thereafter. As of September 23, 2022, 515 days since the first 
testimony deadline, Treasury Secretary Yellen has yet to 
testify before the Committee.
---------------------------------------------------------------------------
    \27\Pub. L. No. 116-260, 134 Stat. 1182 (2020).
    \28\Id.
---------------------------------------------------------------------------
    Committee minority members have requested Secretary 
Yellen's testimony on numerous occasions over the past 515 
days. These requests include a May 26, 2021 letter signed by 
all Committee minority members reminding the Secretary of her 
legal requirement to testify and requesting her availability. A 
July 6, 2021 letter signed by all Committee minority members at 
the conclusion of the PPP processing window reminding the 
Secretary of the Treasury's role in the program and once again 
requesting her testimony. A July 28, 2021 letter signed by the 
Ranking Members of multiple House Committees expressing concern 
at the Secretary's failure to appear before multiple committees 
and once again requesting her testimony. A March 1, 2022 letter 
signed by the Ranking Member of the House Committee on Small 
Business expressing concern as the one-year anniversary of the 
Secretary's failure to testify approached and once again 
requesting her testimony. Finally, a June 13, 2022 letter from 
the Ranking Member of the House Committee on Small Business 
noting the Secretary's ability to appear before multiple media 
outlets while continuing to avoid her legal requirement to 
testify before this Committee. Treasury Secretary Yellen never 
responded to Committee minority members on any of these 
occasions. To date, Treasury Secretary Yellen has never 
provided any type of written response to Committee minority 
members, except for directed responses from the Assistant 
Secretary for Legislative Affairs at the Treasury Department.
    Despite Treasury's role in PPP, this Committee has received 
almost no information from Treasury. With direct jurisdiction 
over such a critical pandemic relief program, Secretary 
Yellen's obstruction has placed this Committee at a legislative 
disadvantage and threatens Congress' legitimate oversight 
responsibilities. Ranking Member Luetkemeyer's Resolution of 
Inquiry, reported unanimously by Republicans and Democrats on 
the Committee on Small Business, intends to correct just that.

                     II. THE RESOLUTION OF INQUIRY

    The resolution directs Treasury Secretary Yellen to 
provide: (1) all communications between the Department of the 
Treasury and the SBA relating to the PPP; (2) all documents and 
communications relating to the obligation of the Treasury 
Secretary to testify before the Small Business Committee of the 
House of Representatives as required by section 321(b) of the 
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and 
Venues Act (15 U.S.C. 639b(b)); and (3) all documents and 
communications relating to the role of the Treasury Secretary 
on administering the PPP.
    The exchange of documents and communications between 
Treasury and the SBA is of critical value to this Committee. As 
the two agencies work in tandem through the loan forgiveness 
period of PPP, this Committee must understand the role each 
agency played, and continues to play, in the program. With 
rampant pandemic fraud seemingly around every corner, a 
legislative solution may be in order. Unfortunately, without 
Treasury's cooperation, the Committee stands at a legislative 
disadvantage.
    Furthermore, as the Secretary continues to thumb her nose 
at her legal requirement to testify before this Committee, we 
remain concerned about the precedent this sets regarding 
Congress' constitutional authority to conduct oversight over 
the executive. With the legality of the Secretary's actions in 
question, we believe the Secretary must have sought counsel or 
guidance from within the Department. As such, this Committee 
requires the documentation and rationale any and all government 
employees have provided Secretary Yellen that would justify her 
refusal to abide by her legal requirement to testify.
    House Resolution 1298, as amended, was reported to the 
House without recommendation with 25 votes in favor and 0 votes 
against. Ms. Salazar was not recorded. Had she been present, 
Ms. Salazar would have voted in favor of the resolution.

              III. AMENDMENTS TO THE RESOLUTION OF INQUIRY

    Van Duyne Amendment 1v2, offered by Representative Beth Van 
Duyne of Texas, adds additional language under the resolution 
of inquiry requesting the Treasury Secretary to provide all 
documents and communications relating to the total amount of 
funding recovered from fraudulently obtained COVID-19 relief. 
This amendment was agreed to with 17 ayes and 4 nos.
    On the Van Duyne Amendment 1v2 vote, Mr. Garbarino, Mr. 
Donalds, and Ms. Salazar were not recorded. Had these members 
been present, they would have voted aye.
    Meuser Amendment 1v2, offered by Representative Dan Meuser 
of Pennsylvania, adds additional language under the ROI 
requesting the Treasury Secretary to provide all documents and 
communications relating to any of Treasury's actions to assist 
small businesses with addressing the impact of federal 
regulations. Additionally, the amendment requests all 
information relating to any guidance the SBA offered to the 
Treasury Department in targeting regulatory assistance to small 
businesses. This amendment was agreed to with 12 ayes and 8 
nos.
    On the Meuser Amendment 1v2 vote, Ms. Kim, Mr. Garbarino, 
Mr. Donalds, and Ms. Salazar were not recorded. Had these 
members been present, they would have voted aye.
    Williams Amendment 1v2, offered by Representative Roger 
Williams of Texas, adds additional language under the ROI 
requesting the Treasury Secretary to provide all documents and 
communications relating to any of Treasury's actions to assist 
small businesses with rising inflation, ongoing labor 
shortages, and persistent supply chain issues. Additionally, 
the amendment requests all information relating to any guidance 
the SBA offered to the Treasury Department in targeting 
economic assistance to small businesses. This amendment was not 
agreed to with 11 ayes and 11 nos.
    On the Williams Amendment 1v2 vote, Mr. Donalds and Ms. 
Salazar were not recorded. Had these members been present, they 
would have voted aye.
    Luetkemeyer Amendment 1v1, offered by Ranking Member 
Luetkemeyer of Missouri, adds additional language under the ROI 
requesting the Treasury Secretary to provide all documents and 
communications relating to any of Treasury's actions to assist 
veteran owned small businesses. Additionally, the amendment 
requests all information relating to any guidance the SBA 
offered to the Treasury Department in targeting economic 
assistance to veteran owned small businesses. This amendment 
was not agreed to with 11 ayes and 13 nos.
    On the Luetkemeyer Amendment 1v1 vote, Mr. Donalds and Ms. 
Salazar were not recorded. Had these members been present, they 
would have voted aye.

                  IV. CONTINUING OVERSIGHT CHALLENGES

    Despite the Committee taking up, and reporting to the 
House, this critical resolution directed at Treasury Secretary 
Yellen, current House rules and precedent have hamstrung this 
Committee from exercising its oversight authority to the full 
extent of its jurisdiction. A Resolution of Inquiry is a method 
used by the House of Representatives to obtain information from 
the executive branch. If properly drafted, in accordance with 
House rules, such resolutions are given special parliamentary 
status. This status allows the introducing member the ability 
to require action on this oversight request. House rules 
describe a properly directed Resolution of Inquiry as one being 
directed to the President or cabinet level secretary. Clause 7 
of rule XIII refers to ``the head of an executive department.'' 
That term does not extend beyond Cabinet officers to 
subordinate officials. Thus, a Resolution of Inquiry directed 
to the Administrator of the SBA would not be privileged for 
consideration.
    The Committee on Small Business has direct legislative 
jurisdiction over the United States Small Business 
Administration. Legislative solutions can be, and often are, 
driven by oversight investigations. As the SBA has taken on 
such an outsized role in the nation's economic recovery, its 
critical this Committee examine the agency's ability to manage 
its growing workload. Unfortunately, current House rules 
prevent this Committee from exercising the same oversight tools 
afforded to other House committees tasked with direct oversight 
over an agency because the Administrator is not recognized as a 
cabinet level official. President Biden's current cabinet 
includes the SBA Administrator as a cabinet level official. 
Based on the role of the SBA in our nation's economic recovery, 
along with the cabinet level rank currently afforded to the 
Administrator, House rules should be amended to officially 
recognize the SBA Administrator as a cabinet level officer.

                                        Blaine Luetkemeyer,
                 Ranking Member, House Committee on Small Business.

                                  [all]