[House Report 119-226]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-226
=======================================================================
SBA FRAUD ENFORCEMENT EXTENSION ACT
----------------
August 15, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
----------------
Mr. Williams of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4495]
The Committee on Small Business, to whom was referred the
bill (H.R. 4495) to extend the statute of limitations for fraud
under certain pandemic programs, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary........................................2
II. Need for Legislation............................................2
III. Hearings........................................................2
IV. Committee Consideration.........................................2
V. Committee Votes.................................................3
VI. Section-by-Section of H.R. 4495.................................5
VII. Congressional Budget Office Cost Estimate.......................5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure5
IX. Oversight Findings & Recommendations............................5
X. Performance Goals and Objectives................................5
XI. Statement of Duplication of Federal Programs....................5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................6
XIII. Federal Mandates Statement......................................6
XIV. Federal Advisory Committee Statement............................6
XV. Applicability to Legislative Branch.............................6
XVI. Statement of Constitutional Authority...........................6
XVII. Changes in Existing Law Made by the Bill, as Reported...........6
XVIII.Minority Views.................................................23
I. Purpose and Bill Summary
On July 17, 2025, Rep. Downing, along with Rep. Conaway,
introduced H.R. 4495, the SBA Fraud Enforcement Extension Act.
H.R. 4495 increases the statute of limitations for fraud
related to the SBA's Shuttered Venue Operators Grant (SVOG) and
Restaurant Revitalization Fund (RRF) programs.
II. Need for Legislation
H.R. 4495 is necessary to crack down on fraud and abuses
within the SBA's SVOG and RRF programs. In the 117th Congress,
the statute of limitations was extended for two other SBA
pandemic era relief programs, the Paycheck Protection Program
(PPP) and COVID-19 Economic Injury Disaster Loan (EIDL)
program. However, SVOG and RRF were not extended. This bill
extends the statute of limitations for SVOG and RRF programs
from 5 to 10 years to ensure those who defrauded the government
are held accountable.\1\
---------------------------------------------------------------------------
\1\U.S. Small Bus. Admin., Office of Inspector Gen., Rep. 23-09,
COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape, 8 (2023).
---------------------------------------------------------------------------
SVOG provided over $16 billion in grants to shuttered
venues such as live performance venues, museums, and motion
picture theaters.\2\ Eligible applicants could qualify for
grants equal to 45 percent of their gross earned revenue, up to
a single grant award of $10 million.\3\ The program stopped
accepting applications on August 20, 2021.\4\
---------------------------------------------------------------------------
\2\U.S. Small Bus. Admin. Shuttered Venue Operators Grant, https://
www.sba.gov/funding-
programs/loans/covid-19-relief-options/shuttered-venue-operators-grant
(last visited Jul. 18, 2025).
\3\Id.
\4\Id.
---------------------------------------------------------------------------
RRF provided $28.6 billion in funding to restaurants and
other similar businesses that experienced revenue loss as a
result of the pandemic.\5\ Eligible applicants could receive
funds for revenue loss up to $10 million per business.\6\
Recipients were not required to repay their funds so long as it
was used for eligible purposes by March 11, 2023.\7\
---------------------------------------------------------------------------
\5\U.S. Small Bus. Admin. Restaurant Revitalization Fund, https://
www.sba.gov/funding-
programs/loans/covid-19-relief-options/restaurant-revitalization-fund
(last visited Jul. 18, 2025).
\6\Id.
\7\Id.
---------------------------------------------------------------------------
III. Hearings
On February 5, 2025, the Committee on Small Business held a
hearing examining matters related to H.R. 4495 entitled ``Hope
on the Horizon: Prioritizing Small Business Growth in the 119th
Congress.''
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on July 22, 2025, and ordered H.R. 4495
to be reported favorably to the House of Representatives by a
roll call vote of 23 ayes and 0 nos. During the markup no
amendments were offered on this bill.
V. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The Committee voted to favorably report H.R. 4495 to
the House of Representatives at 11:06 AM.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. Section-by-Section of H.R. 4495
Section 1--Short title
This bill may be cited as the ``SBA Fraud Enforcement
Extension Act.''
Section 2--Statute of limitations for certain programs
This section extends the statute of limitations from five
to ten years for fraud within SBA's Shuttered Venue Operators
Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs.
This section also specifies statutes for criminal
prosecution or civil enforcement of fraudulent individuals who
received funds through the SVOG and RRF programs.
VII. Congressional Budget Office Cost Estimate
Pursuant to 3(c)(3) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the cost
estimate prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974. At the time this report was filed, 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)(I) 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 new or increased costs
attributable to this legislation.
IX. Oversight Findings & Recommendations
In accordance with clause 2(b)(1) of rule X and clause
3(c)(1) of rule XIII 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 H.R. 4495 are incorporated into the
descriptive portions of this report.
X. 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 goal of
H.R. 4495 is to extend the statute of limitations from five to
ten years for fraud with respect to the SBA's SVOG and RRF
programs.
XI. Statement of 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.R. 4495 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 the bill
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
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
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. Statement of Constitutional Authority
Pursuant to clause 7 of rule XII of the Rules of the House,
the Committee finds that the authority for this legislation in
Art. I, Sec. 8, cl.1 of the Constitution of the United States.
XVII. 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, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
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, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
SECTION 324 OF TITLE III OF DIVISION N OF THE
CONSOLIDATED APPROPRIATIONS ACT, 2021
SEC. 324. GRANTS FOR SHUTTERED VENUE OPERATORS.
(a) Definitions.--In this section:
(1) Eligible person or entity.--
(A) In general.--The term ``eligible person
or entity'' means a live venue operator or
promoter, theatrical producer, or live
performing arts organization operator, a
relevant museum operator, a motion picture
theatre operator, or a talent representative
that meets the following requirements:
(i) The live venue operator or
promoter, theatrical producer, or live
performing arts organization operator,
the relevant museum operator, the
motion picture theatre operator, or the
talent representative--
(I) was fully operational as
a live venue operator or
promoter, theatrical producer,
or live performing arts
organization operator, a
relevant museum operator, a
motion picture theatre
operator, or a talent
representative on February 29,
2020; and
(II) has gross earned revenue
during the first, second,
third, or, only with respect to
an application submitted on or
after January 1, 2021, fourth
quarter in 2020 that
demonstrates not less than a 25
percent reduction from the
gross earned revenue of the
live venue operator or
promoter, theatrical producer,
or live performing arts
organization operator, the
relevant museum operator, the
motion picture theatre
operator, or the talent
representative during the same
quarter in 2019.
(ii) As of the date of the grant
under this section--
(I) the live venue operator
or promoter, theatrical
producer, or live performing
arts organization operator is
or intends to resume
organizing, promoting,
producing, managing, or hosting
future live events described in
paragraph (3)(A)(i);
(II) the motion picture
theatre operator is open or
intends to reopen for the
primary purpose of public
exhibition of motion pictures;
(III) the relevant museum
operator is open or intends to
reopen; or
(IV) the talent
representative is representing
or managing artists and
entertainers.
(iii) The venues at which the live
venue operator or promoter, theatrical
producer, or live performing arts
organization operator promotes,
produces, manages, or hosts events
described in paragraph (3)(A)(i) or the
artists and entertainers represented or
managed by the talent representative
perform have the following
characteristics:
(I) A defined performance and
audience space.
(II) Mixing equipment, a
public address system, and a
lighting rig.
(III) Engages 1 or more
individuals to carry out not
less than 2 of the following
roles:
(aa) A sound
engineer.
(bb) A booker.
(cc) A promoter.
(dd) A stage manager.
(ee) Security
personnel.
(ff) A box office
manager.
(IV) There is a paid ticket
or cover charge to attend most
performances and artists are
paid fairly and do not play for
free or solely for tips, except
for fundraisers or similar
charitable events.
(V) For a venue owned or
operated by a nonprofit entity
that produces free events, the
events are produced and managed
primarily by paid employees,
not by volunteers.
(VI) Performances are
marketed through listings in
printed or electronic
publications, on websites, by
mass email, or on social media.
(iv) A motion picture theatre or
motion picture theatres operated by the
motion picture theatre operator have
the following characteristics:
(I) At least 1 auditorium
that includes a motion picture
screen and fixed audience
seating.
(II) A projection booth or
space containing not less than
1 motion picture projector.
(III) A paid ticket charge to
attend exhibition of motion
pictures.
(IV) Motion picture
exhibitions are marketed
through showtime listings in
printed or electronic
publications, on websites, by
mass mail, or on social media.
(v) The relevant museum or relevant
museums for which the relevant museum
operator is seeking a grant under this
section have the following
characteristics:
(I) Serving as a relevant
museum as its principal
business activity.
(II) Indoor exhibition spaces
that are a component of the
principal business activity and
which have been subjected to
pandemic-related occupancy
restrictions.
(III) At least 1 auditorium,
theater, or performance or
lecture hall with fixed
audience seating and regular
programming.
(vi)(I) The live venue operator or
promoter, theatrical producer, or live
performing arts organization operator,
the relevant museum operator, the
motion picture theatre operator, or the
talent representative does not have, or
is not majority owned or controlled by
an entity with, any of the following
characteristics:
(aa) Being an issuer,
the securities of which
are listed on a
national securities
exchange.
(bb) Receiving more
than 10 percent of
gross revenue from
Federal funding during
2019, excluding amounts
received by the live
venue operator or
promoter, theatrical
producer, or live
performing arts
organization operator,
the relevant museum
operator, the motion
picture theatre
operator, or the talent
representative under
the Robert T. Stafford
Disaster Relief and
Emergency Assistance
Act (42 U.S.C. 5121 et
seq.).
(II) The live venue operator
or promoter, theatrical
producer, or live performing
arts organization operator, the
relevant museum operator, the
motion picture theatre
operator, or the talent
representative does not have,
or is not majority owned or
controlled by an entity with,
more than 2 of the following
characteristics:
(aa) Owning or
operating venues,
relevant museums,
motion picture
theatres, or talent
agencies or talent
management companies in
more than 1 country.
(bb) Owning or
operating venues,
relevant museums,
motion picture
theatres, or talent
agencies or talent
management companies in
more than 10 States.
(cc) Employing more
than 500 employees as
of February 29, 2020,
determined on a full-
time equivalent basis
in accordance with
subparagraph (C).
(III) For purposes of
applying the characteristics
described in subclauses (I) and
(II) to an entity owned by a
State or a political
subdivision of a State, the
relevant entity--
(aa) shall be the
live venue operator or
promoter, theatrical
producer, or live
performing arts
organization operator,
the relevant museum
operator, the motion
picture theatre
operator, or the talent
representative; and
(bb) shall not
include entities of the
State or political
subdivision other than
the live venue operator
or promoter, theatrical
producer, or live
performing arts
organization operator,
the relevant museum
operator, the motion
picture theatre
operator, or the talent
representative.
(B) Exclusion.--The term ``eligible person or
entity'' shall not include a live venue
operator or promoter, theatrical producer, or
live performing arts organization operator, a
relevant museum operator, a motion picture
theatre operator, or a talent representative
that--
(i) presents live performances of a
prurient sexual nature; or
(ii) derives, directly or indirectly,
more than de minimis gross revenue
through the sale of products or
services, or the presentation of any
depictions or displays, of a prurient
sexual nature.
(C) Calculation of full-time employees.--For
purposes of determining the number of full-time
equivalent employees under subparagraph
(A)(vi)(II)(cc) of this paragraph and under
paragraph (2)(E)--
(i) any employee working not fewer
than 30 hours per week shall be
considered a full-time employee; and
(ii) any employee working not fewer
than 10 hours and fewer than 30 hours
per week shall be counted as one-half
of a full-time employee.
(D) Multiple business entities.--Each
business entity of an eligible person or entity
that also meets the requirements under
subparagraph (A) and that is not described in
subparagraph (B) shall be treated by the
Administrator as an independent, non-affiliated
entity for the purposes of this section.
(2) Exchange; issuer; security.--The terms
``exchange'', ``issuer'', and ``security'' have the
meanings given those terms in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
(3) Live venue operator or promoter, theatrical
producer, or live performing arts organization
operator.--The term ``live venue operator or promoter,
theatrical producer, or live performing arts
organization operator''--
(A) means--
(i) an individual or entity--
(I) that, as a principal
business activity, organizes,
promotes, produces, manages, or
hosts live concerts, comedy
shows, theatrical productions,
or other events by performing
artists for which--
(aa) a cover charge
through ticketing or
front door entrance fee
is applied; and
(bb) performers are
paid in an amount that
is based on a
percentage of sales, a
guarantee (in writing
or standard contract),
or another mutually
beneficial formal
agreement; and
(II) for which not less than
70 percent of the earned
revenue of the individual or
entity is generated through, to
the extent related to a live
event described in subclause
(I), cover charges or ticket
sales, production fees or
production reimbursements,
nonprofit educational
initiatives, or the sale of
event beverages, food, or
merchandise; or
(ii) an individual or entity that, as
a principal business activity, makes
available for purchase by the public an
average of not less than 60 days before
the date of the event tickets to
events--
(I) described in clause
(i)(I); and
(II) for which performers are
paid in an amount that is based
on a percentage of sales, a
guarantee (in writing or
standard contract), or another
mutually beneficial formal
agreement; and
(B) includes an individual or entity
described in subparagraph (A) that--
(i) operates for profit;
(ii) is a nonprofit organization;
(iii) is government-owned; or
(iv) is a corporation, limited
liability company, or partnership or
operated as a sole proprietorship.
(4) Motion picture theatre operator.--The term
``motion picture theatre operator'' means an individual
or entity that--
(A) as the principal business activity of the
individual or entity, owns or operates at least
1 place of public accommodation for the purpose
of motion picture exhibition for a fee; and
(B) includes an individual or entity
described in subparagraph (A) that--
(i) operates for profit;
(ii) is a nonprofit organization;
(iii) is government-owned; or
(iv) is a corporation, limited
liability company, or partnership or
operated as a sole proprietorship.
(5) National securities exchange.--The term
``national securities exchange'' means an exchange
registered as a national securities exchange under
section 6 of the Securities Exchange Act of 1934 (15
U.S.C. 78f).
(6) Nonprofit.--The term ``nonprofit'', with respect
to an organization, means that the organization is
exempt from taxation under section 501(a) of the
Internal Revenue Code of 1986.
(7) Relevant museum.--The term ``relevant museum''--
(A) has the meaning given the term ``museum''
in section 273 of the Museum and Library
Services Act (20 U.S.C. 9172); and
(B) shall not include any entity that is
organized as a for-profit entity.
(8) Seasonal employer.--The term ``seasonal
employer'' has the meaning given that term in
subparagraph (A) of section 7(a)(36) of the Small
Business Act (15 U.S.C. 636(a)), as amended by this
Act.
(9) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the
United States.
(10) Talent representative.--The term ``talent
representative''--
(A) means an agent or manager that--
(i) as not less than 70 percent of
the operations of the agent or manager,
is engaged in representing or managing
artists and entertainers;
(ii) books or represents musicians,
comedians, actors, or similar
performing artists primarily at live
events in venues or at festivals; and
(iii) represents performers described
in clause (ii) that are paid in an
amount that is based on the number of
tickets sold, or a similar basis; and
(B) includes an agent or manager described in
subparagraph (A) that--
(i) operates for profit;
(ii) is a nonprofit organization;
(iii) is government-owned; or
(iv) is a corporation, limited
liability company, or partnership or
operated as a sole proprietorship.
(b) Authority.--
(1) In general.--
(A) Administration.--The Associate
Administrator for the Office of Disaster
Assistance of the Administration shall
coordinate and formulate policies relating to
the administration of grants made under this
section.
(B) Certification of need.--An eligible
person or entity applying for a grant under
this section shall submit a good faith
certification that the uncertainty of current
economic conditions makes necessary the grant
to support the ongoing operations of the
eligible person or entity.
(2) Initial grants.--
(A) In general.--The Administrator may make
initial grants to eligible persons or entities
in accordance with this section.
(B) Initial priorities for awarding grants.--
(i) First priority in awarding
grants.--During the initial 14-day
period during which the Administrator
awards grants under this paragraph, the
Administrator shall only award grants
to an eligible person or entity with
revenue, during the period beginning on
April 1, 2020 and ending on December
31, 2020, that is not more than 10
percent of the revenue of the eligible
person or entity during the period
beginning on April 1, 2019 and ending
on December 31, 2019, due to the COVID-
19 pandemic.
(ii) Second priority in awarding
grants.--During the 14-day period
immediately following the 14-day period
described in clause (i), the
Administrator shall only award grants
to an eligible person or entity with
revenue, during the period beginning on
April 1, 2020 and ending on December
31, 2020, that is not more than 30
percent of the revenue of the eligible
person or entity during the period
beginning on April 1, 2019 and ending
on December 31, 2019, due to the COVID-
19 pandemic.
(iii) Determination of revenue.--For
purposes of clauses (i) and (ii)--
(I) any amounts received by
an eligible person or entity
under the CARES Act (Public Law
116-136; 134 Stat. 281) or an
amendment made by the CARES Act
shall not be counted as revenue
of an eligible person or
entity;
(II) the Administrator shall
use an accrual method of
accounting for determining
revenue; and
(III) the Administrator may
use alternative methods to
establish revenue losses for an
eligible person or entity that
is a seasonal employer and that
would be adversely impacted if
January, February, and March
are excluded from the
calculation of year-over-year
revenues.
(iv) Limit on use of amounts for
priority applicants.--The Administrator
may use not more than 80 percent of the
amounts appropriated under section
323(d)(1)(H) of this Act to carry out
this section to make initial grants
under this paragraph to eligible
persons or entities described in clause
(i) or (ii) of this subparagraph that
apply for a grant under this paragraph
during the initial 28-day period during
which the Administrator awards grants
under this paragraph.
(C) Grants after priority periods.--After the
end of the initial 28-day period during which
the Administrator awards grants under this
paragraph, the Administrator may award an
initial grant to any eligible person or entity.
(D) Limits on number of initial grants to
affiliates.--Not more than 5 business entities
of an eligible person or entity that would be
considered affiliates under the affiliation
rules of the Administration may receive a grant
under this paragraph.
(E) Set-aside for small employers.--
(i) In general.--Subject to clause
(ii), not less than $2,000,000,000 of
the total amount of grants made
available under this paragraph shall be
awarded to eligible persons or entities
which employ not more than 50 full-time
employees, determined in accordance
with subsection (a)(1)(C).
(ii) Time limit.--Clause (i) shall
not apply on and after the date that is
60 days after the Administrator begins
awarding grants under this section and,
on and after such date, amounts
available for grants under this section
may be used for grants under this
section to any eligible person or
entity.
(3) Supplemental grants.--
(A) In general.--Subject to subparagraph (B),
the Administrator may make a supplemental grant
in accordance with this section to an eligible
person or entity that receives a grant under
paragraph (2) if, as of April 1, 2021, the
revenues of the eligible person or entity for
the most recent calendar quarter are not more
than 30 percent of the revenues of the eligible
person or entity for the corresponding calendar
quarter during 2019 due to the COVID-19
pandemic.
(B) Processing timely initial grant
applications first.--The Administrator may not
award a supplemental grant under subparagraph
(A) until the Administrator has completed
processing (including determining whether to
award a grant) each application for an initial
grant under paragraph (2) that is submitted by
an eligible person or entity on or before the
date that is 60 days after the date on which
the Administrator begins accepting such
applications.
(4) Certification.--An eligible person or entity
applying for a grant under this section that is an
eligible business described in the matter preceding
subclause (I) of section 4003(c)(3)(D)(i) of the CARES
Act (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good-
faith certification described in subclauses (IX) and
(X) of such section.
(c) Amount.--
(1) Initial grants.--
(A) In general.--Subject to subparagraphs (B)
and (C), a grant under subsection (b)(2) shall
be in the amount equal to the lesser of--
(i)(I) for an eligible person or
entity that was in operation on January
1, 2019, the amount equal to 45 percent
of the gross earned revenue of the
eligible person or entity during 2019;
or
(II) for an eligible person
or entity that began operations
after January 1, 2019, the
amount equal to the product
obtained by multiplying--
(aa) the average
monthly gross earned
revenue for each full
month during which the
eligible person or
entity was in operation
during 2019; by
(bb) 6; or
(ii) $10,000,000.
(B) Application to relevant museum
operators.--A relevant museum operator may not
receive grants under subsection (b)(2) in a
total amount that is more than $10,000,000 with
respect to all relevant museums operated by the
relevant museum operator.
(C) Reduction for recipients of new PPP
loans.--
(i) In general.--The otherwise
applicable amount of a grant under
subsection (b)(2) to an eligible person
or entity shall be reduced by the total
amount of loans guaranteed under
paragraph (36) or (37) of section 7(a)
of the Small Business Act (15 U.S.C.
636(a)) that are received on or after
December 27, 2020 by the eligible
person or entity.
(ii) Application to governmental
entities.--For purposes of applying
clause (i) to an eligible person or
entity owned by a State or a political
subdivision of a State, the relevant
entity--
(I) shall be the eligible
person or entity; and
(II) shall not include
entities of the State or
political subdivision other
than the eligible person or
entity.
(2) Supplemental grants.--A grant under subsection
(b)(3) shall be in the amount equal to 50 percent of
the grant received by the eligible person or entity
under subsection (b)(2).
(3) Overall maximums.--The total amount of grants
received under paragraphs (2) and (3) of subsection (b)
by an eligible person or entity shall be not more than
$10,000,000.
(d) Use of Funds.--
(1) Timing.--
(A) Expenses incurred.--
(i) In general.--Except as provided
in clause (ii), amounts received under
a grant under this section may be used
for costs incurred during the period
beginning on March 1, 2020, and ending
on December 31, 2021.
(ii) Extension for supplemental
grants.--If an eligible person or
entity receives a grant under
subsection (b)(3), amounts received
under either grant under this section
may be used for costs incurred during
the period beginning on March 1, 2020,
and ending on June 30, 2022.
(B) Expenditure.--
(i) In general.--Except as provided
in clause (ii), an eligible person or
entity shall return to the
Administrator any amounts received
under a grant under this section that
are not expended on or before the date
that is 1 year after the date of
disbursement of the grant.
(ii) Extension for supplemental
grants.--If an eligible person or
entity receives a grant under
subsection (b)(3), the eligible person
or entity shall return to the
Administrator any amounts received
under either grant under this section
that are not expended on or before the
date that is 18 months after the date
of disbursement to the eligible person
or entity of the grant under subsection
(b)(2).
(2) Allowable expenses.--
(A) Definitions.--In this paragraph--
(i) the terms ``covered mortgage
obligation'', ``covered rent
obligation'', ``covered utility
payment'', and ``covered worker
protection expenditure'' have the
meanings given those terms in section
7A(a) of the Small Business Act, as
redesignated, transferred, and amended
by this Act; and
(ii) the term ``payroll costs'' has
the meaning given that term in section
7(a)(36)(A) of the Small Business Act
(15 U.S.C. 636(a)(36)(A).
(B) Expenses.--An eligible person or entity
may use amounts received under a grant under
this section for--
(i) payroll costs;
(ii) payments on any covered rent
obligation;
(iii) any covered utility payment;
(iv) scheduled payments of interest
or principal on any covered mortgage
obligation (which shall not include any
prepayment of principal on a covered
mortgage obligation);
(v) scheduled payments of interest or
principal on any indebtedness or debt
instrument (which shall not include any
prepayment of principal) incurred in
the ordinary course of business that is
a liability of the eligible person or
entity and was incurred prior to
February 15, 2020;
(vi) covered worker protection
expenditures;
(vii) payments made to independent
contractors, as reported on Form-1099
MISC, not to exceed a total of $100,000
in annual compensation for any
individual employee of an independent
contractor; and
(viii) other ordinary and necessary
business expenses, including--
(I) maintenance expenses;
(II) administrative costs,
including fees and licensing
costs;
(III) State and local taxes
and fees;
(IV) operating leases in
effect as of February 15, 2020;
(V) payments required for
insurance on any insurance
policy; and
(VI) advertising, production
transportation, and capital
expenditures related to
producing a theatrical or live
performing arts production,
concert, exhibition, or comedy
show, except that a grant under
this section may not be used
primarily for such
expenditures.
(3) Prohibited expenses.--An eligible person or
entity may not use amounts received under a grant under
this section--
(A) to purchase real estate;
(B) for payments of interest or principal on
loans originated after February 15, 2020;
(C) to invest or re-lend funds;
(D) for contributions or expenditures to, or
on behalf of, any political party, party
committee, or candidate for elective office; or
(E) for any other use as may be prohibited by
the Administrator.
(e) Increased Oversight of Shuttered Venue Operator Grants.--
The Administrator shall increase oversight of eligible persons
and entities receiving grants under this section, which may
include the following:
(1) Documentation.--Additional documentation
requirements that are consistent with the eligibility
and other requirements under this section, including
requiring an eligible person or entity that receives a
grant under this section to retain records that
document compliance with the requirements for grants
under this section--
(A) with respect to employment records, for
the 4-year period following receipt of the
grant; and
(B) with respect to other records, for the 3-
year period following receipt of the grant.
(2) Reviews of use.--Reviews of the use of the grant
proceeds by an eligible person or entity to ensure
compliance with requirements established under this
section and by the Administrator, including that the
Administrator may--
(A) review and audit grants under this
section; and
(B) in the case of fraud or other material
noncompliance with respect to a grant under
this section--
(i) require repayment of misspent
funds; or
(ii) pursue legal action to collect
funds.
(f) Shuttered Venue Oversight and Audit Plan.--
(1) In general.--Not later than 45 days after the
date of enactment of this Act, the Administrator shall
submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives an audit
plan that details--
(A) the policies and procedures of the
Administrator for conducting oversight and
audits of grants under this section; and
(B) the metrics that the Administrator shall
use to determine which grants under this
section will be audited pursuant to subsection
(e).
(2) Reports.--Not later than 60 days after the date
of enactment of this Act, and each month thereafter
until the date that is 1 year after the date on which
all amounts made available under section 323(d)(1)(H)
of this Act have been expended, the Administrator shall
submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
on the oversight and audit activities of the
Administrator under this subsection, which shall
include--
(A) the total number of initial grants
approved and disbursed;
(B) the total amount of grants received by
each eligible person or entity, including any
supplemental grants;
(C) the number of active investigations and
audits of grants under this section;
(D) the number of completed reviews and
audits of grants under this section, including
a description of any findings of fraud or other
material noncompliance.
(E) any substantial changes made to the
oversight and audit plan submitted under
paragraph (1).
(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.
----------
AMERICAN RESCUE PLAN ACT OF 2021
* * * * * * *
TITLE V--COMMITTEE ON SMALL
BUSINESS AND ENTREPRENEURSHIP
* * * * * * *
SEC. 5003. SUPPORT FOR RESTAURANTS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Small Business Administration.
(2) Affiliated business.--The term ``affiliated
business'' means a business in which an eligible entity
has an equity or right to profit distributions of not
less than 50 percent, or in which an eligible entity
has the contractual authority to control the direction
of the business, provided that such affiliation shall
be determined as of any arrangements or agreements in
existence as of March 13, 2020.
(3) Covered period.--The term ``covered period''
means the period--
(A) beginning on February 15, 2020; and
(B) ending on December 31, 2021, or a date to
be determined by the Administrator that is not
later than 2 years after the date of enactment
of this section.
(4) Eligible entity.--The term ``eligible entity''--
(A) means a restaurant, food stand, food
truck, food cart, caterer, saloon, inn, tavern,
bar, lounge, brewpub, tasting room, taproom,
licensed facility or premise of a beverage
alcohol producer where the public may taste,
sample, or purchase products, or other similar
place of business in which the public or
patrons assemble for the primary purpose of
being served food or drink;
(B) includes an entity described in
subparagraph (A) that is located in an airport
terminal or that is a Tribally-owned concern;
and
(C) does not include--
(i) an entity described in
subparagraph (A) that--
(I) is a State or local
government-operated business;
(II) as of March 13, 2020,
owns or operates (together with
any affiliated business) more
than 20 locations, regardless
of whether those locations do
business under the same or
multiple names; or
(III) has a pending
application for or has received
a grant under section 324 of
the Economic Aid to Hard-Hit
Small Businesses, Nonprofits,
and Venues Act (title III of
division N of Public Law 116-
260); or
(ii) a publicly-traded company.
(5) Exchange; issuer; security.--The terms
``exchange'', ``issuer'', and ``security'' have the
meanings given those terms in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
(6) Fund.--The term ``Fund'' means the Restaurant
Revitalization Fund established under subsection (b).
(7) Pandemic-related revenue loss.--The term
``pandemic-related revenue loss'' means, with respect
to an eligible entity--
(A) except as provided in subparagraphs (B),
(C), and (D), the gross receipts, as
established using such verification
documentation as the Administrator may require,
of the eligible entity during 2020 subtracted
from the gross receipts of the eligible entity
in 2019, if such sum is greater than zero;
(B) if the eligible entity was not in
operation for the entirety of 2019--
(i) the difference between--
(I) the product obtained by
multiplying the average monthly
gross receipts of the eligible
entity in 2019 by 12; and
(II) the product obtained by
multiplying the average monthly
gross receipts of the eligible
entity in 2020 by 12; or
(ii) an amount based on a formula
determined by the Administrator;
(C) if the eligible entity opened during the
period beginning on January 1, 2020, and ending
on the day before the date of enactment of this
section--
(i) the expenses described in
subsection (c)(5)(A) that were incurred
by the eligible entity minus any gross
receipts received; or
(ii) an amount based on a formula
determined by the Administrator; or
(D) if the eligible entity has not yet opened
as of the date of application for a grant under
subsection (c), but has incurred expenses
described in subsection (c)(5)(A) as of the
date of enactment of this section--
(i) the amount of those expenses; or
(ii) an amount based on a formula
determined by the Administrator.For
purposes of this paragraph, the
pandemic-related revenue losses for an
eligible entity shall be reduced by any
amounts received from a covered loan
made under paragraph (36) or (37) of
section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) in 2020 or 2021.
(8) Payroll costs.--The term ``payroll costs'' has
the meaning given the term in section 7(a)(36)(A) of
the Small Business Act (15 U.S.C. 636(a)(36)(A)),
except that such term shall not include--
(A) qualified wages (as defined in subsection
(c)(3) of section 2301 of the CARES Act) taken
into account in determining the credit allowed
under such section 2301; or
(B) premiums taken into account in
determining the credit allowed under section
6432 of the Internal Revenue Code of 1986.
(9) Publicly-traded company.--The term ``publicly-
traded company'' means an entity that is majority owned
or controlled by an entity that is an issuer, the
securities of which are listed on a national securities
exchange under section 6 of the Securities Exchange Act
of 1934 (15 U.S.C. 78f).
(10) Tribally-owned concern.--The term ``Tribally-
owned concern'' has the meaning given the term in
section 124.3 of title 13, Code of Federal Regulations,
or any successor regulation.
(b) Restaurant Revitalization Fund.--
(1) In general.--There is established in the Treasury
of the United States a fund to be known as the
Restaurant Revitalization Fund.
(2) Appropriations.--
(A) In general.--In addition to amounts
otherwise available, there is appropriated to
the Restaurant Revitalization Fund for fiscal
year 2021, out of any money in the Treasury not
otherwise appropriated, $28,600,000,000, to
remain available until expended.
(B) Distribution.--
(i) In general.--Of the amounts made
available under subparagraph (A)--
(I) $5,000,000,000 shall be
available to eligible entities
with gross receipts during 2019
of not more than $500,000; and
(II) $23,600,000,000 shall be
available to the Administrator
to award grants under
subsection (c) in an equitable
manner to eligible entities of
different sizes based on annual
gross receipts.
(ii) Adjustments.--The Administrator
may make adjustments as necessary to
the distribution of funds under clause
(i)(II) based on demand and the
relative local costs in the markets in
which eligible entities operate.
(C) Grants after initial period.--
Notwithstanding subparagraph (B), on and after
the date that is 60 days after the date of
enactment of this section, or another period of
time determined by the Administrator, the
Administrator may make grants using amounts
appropriated under subparagraph (A) to any
eligible entity regardless of the annual gross
receipts of the eligible entity.
(3) Use of funds.--The Administrator shall use
amounts in the Fund to make grants described in
subsection (c).
(c) Restaurant Revitalization Grants.--
(1) In general.--Except as provided in subsection (b)
and paragraph (3), the Administrator shall award grants
to eligible entities in the order in which applications
are received by the Administrator.
(2) Application.--
(A) Certification.--An eligible entity
applying for a grant under this subsection
shall make a good faith certification that--
(i) the uncertainty of current
economic conditions makes necessary the
grant request to support the ongoing
operations of the eligible entity; and
(ii) the eligible entity has not
applied for or received a grant under
section 324 of the Economic Aid to
Hard-Hit Small Businesses, Nonprofits,
and Venues Act (title III of division N
of Public Law 116-260).
(B) Business identifiers.--In accepting
applications for grants under this subsection,
the Administrator shall prioritize the ability
of each applicant to use their existing
business identifiers over requiring other forms
of registration or identification that may not
be common to their industry and imposing
additional burdens on applicants.
(3) Priority in awarding grants.--
(A) In general.--During the initial 21-day
period in which the Administrator awards grants
under this subsection, the Administrator shall
prioritize awarding grants to eligible entities
that are small business concerns owned and
controlled by women (as defined in section 3(n)
of the Small Business Act (15 U.S.C. 632(n))),
small business concerns owned and controlled by
veterans (as defined in section 3(q) of such
Act (15 U.S.C. 632(q))), or socially and
economically disadvantaged small business
concerns (as defined in section 8(a)(4)(A) of
the Small Business Act (15 U.S.C.
637(a)(4)(A))). The Administrator may take such
steps as necessary to ensure that eligible
entities described in this subparagraph have
access to grant funding under this section
after the end of such 21-day period.
(B) Certification.--For purposes of
establishing priority under subparagraph (A),
an applicant shall submit a self-certification
of eligibility for priority with the grant
application.
(4) Grant amount.--
(A) Aggregate maximum amount.--The aggregate
amount of grants made to an eligible entity and
any affiliated businesses of the eligible
entity under this subsection--
(i) shall not exceed $10,000,000; and
(ii) shall be limited to $5,000,000
per physical location of the eligible
entity.
(B) Determination of grant amount.--
(i) In general.--Except as provided
in this paragraph, the amount of a
grant made to an eligible entity under
this subsection shall be equal to the
pandemic-related revenue loss of the
eligible entity.
(ii) Return to treasury.--Any amount
of a grant made under this subsection
to an eligible entity based on
estimated receipts that is greater than
the actual gross receipts of the
eligible entity in 2020 shall be
returned to the Treasury.
(5) Use of funds.--During the covered period, an
eligible entity that receives a grant under this
subsection may use the grant funds for the following
expenses incurred as a direct result of, or during, the
COVID-19 pandemic:
(A) Payroll costs.
(B) Payments of principal or interest on any
mortgage obligation (which shall not include
any prepayment of principal on a mortgage
obligation).
(C) Rent payments, including rent under a
lease agreement (which shall not include any
prepayment of rent).
(D) Utilities.
(E) Maintenance expenses, including--
(i) construction to accommodate
outdoor seating; and
(ii) walls, floors, deck surfaces,
furniture, fixtures, and equipment.
(F) Supplies, including protective equipment
and cleaning materials.
(G) Food and beverage expenses that are
within the scope of the normal business
practice of the eligible entity before the
covered period.
(H) Covered supplier costs, as defined in
section 7A(a) of the Small Business Act (as
redesignated, transferred, and amended by
section 304(b) of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act
(Public Law 116-260)).
(I) Operational expenses.
(J) Paid sick leave.
(K) Any other expenses that the Administrator
determines to be essential to maintaining the
eligible entity.
(6) Returning funds.--If an eligible entity that
receives a grant under this subsection fails to use all
grant funds or permanently ceases operations on or
before the last day of the covered period, the eligible
entity shall return to the Treasury any funds that the
eligible entity did not use for the allowable expenses
under paragraph (5).
(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.
* * * * * * *
XVIII. MINORITY VIEWS
More than 30 million small businesses were adversely
impacted by the COVID-19 pandemic, and an unprecedented amount
of money flowed to small businesses in the form of grants and
loans to help them stay afloat. Over the course of 18 months,
the Small Business Administration (SBA) administered four major
programs and delivered 22.1 million loans and grants totaling
$1.2 trillion.\1\ The four main programs and their
disbursements are: Paycheck Protection Program, (PPP) ($792
billion), Economic Injury Disaster Loan (EIDL) Program ($405.2
billion), the Restaurant Revitalization Fund (RRF) ($28.6
billion), and the Shuttered Venue Operators Grant (SVOG) ($14.6
million).\2\ In an effort to deliver aid to small businesses
quickly, the Trump Administration reduced or eliminated many
existing internal controls.\3\
---------------------------------------------------------------------------
\1\Off. of Inspector Gen., U.S. Small Bus. Admin., Top Performance
and Management Challenges Facing the Small Business Administration in
Fiscal Year 2025, (Oct. 15, 2024).
\2\Id.
\3\Id.
---------------------------------------------------------------------------
The Office of the Inspector General (OIG) issued a number
of reports early on, warning of the importance of strong
internal controls to mitigate risk, and a total of 22 reports
to identify weaknesses in SBA's control environment throughout
the pandemic.\4\ Beginning in early 2021, long-standing anti-
fraud controls were reinstituted, and new safeguards were put
into place by the previous administration to reduce the
potential for fraud.\5\ On June 27, 2023, the OIG issued a
white paper to provide a comprehensive review reporting that
SBA disbursed more than $200 billion in potentially fraudulent
COVID-19 EIDLs, EIDL Targeted Advances, Supplemental Targeted
Advances, and PPP loans.\6\ Of this amount, OIG estimates SBA
disbursed $136 billion in potentially fraudulent COVID-19 EIDLs
and $64 billion in potentially fraudulent PPP funds.\7\
---------------------------------------------------------------------------
\4\Off. of Inspector Gen., U.S. Small Bus. Admin., COVID-19
Pandemic EIDL and PPP Loan Fraud Landscape (Jun. 27, 2023).
\5\U.S. Small Bus. Admin., Protecting the Integrity of the Pandemic
Relief Emergency Programs: SBA's Actions to Prevent, Detect, and
Address Fraud (Jun. 27, 2023).
\6\Off. of Inspector Gen., U.S. Small Bus. Admin., COVID-19
Pandemic EIDL and PPP Loan Fraud Landscape (Jun. 27, 2023).
\7\Supra note 5.
---------------------------------------------------------------------------
SBA also issued a report, entitled ``Protecting the
Integrity of the Pandemic Relief Programs,'' which estimates
that $36 billion of the $1.2 trillion in pandemic relief
emergency funds were obtained fraudulently.\8\ Moreover, the
SBA, under the previous administration, asserted that 86
percent of the likely fraud originated in the first nine months
of the pandemic,\9\ under the first Trump Administration. Under
the leadership of then Committee Chairwoman Velazquez, Congress
passed two bills to extend the statute of limitations for fraud
in the PPP\10\ and EIDL\11\ programs from 5 to 10 years.
Democrats on the Committee have supported full funding for the
OIG to ensure the Office has the resources it needs to fully
investigate the pandemic fraud.
---------------------------------------------------------------------------
\8\Id.
\9\Id.
\10\PPP and Bank Fraud Enforcement Harmonization Act of 2022, Pub.
L. No. 117-166, 136 Stat. 1365 (2022) (codified at 15 U.S.C.
Sec. 636(a) (2022)).
\11\COVID-19 EIDL Fraud Statute of Limitations Act of 2022, Pub. L.
No. 117-165, 136 Stat. 1363 (2022) (codified at 15 U.S.C.
Sec. Sec. 636(b), 9009 (2022)).
---------------------------------------------------------------------------
The legislation under consideration today would extend the
statute of limitations on the RRF and SVOG programs. The
American Rescue Plan established the RRF to provide grants up
to $10 million per business and no more than $5 million per
physical location to help restaurants and other eligible
businesses keep their doors open during the pandemic.\12\ The
Economic Aid Act created the SVOG to provide grants to eligible
performing arts businesses during the pandemic. As of June
2025, the OIG has 31 open investigations related to potential
fraud in these programs, with 25 open RRF cases and 6 open SVOG
cases. To date, the OIG's efforts have resulted in charges
against 25 individuals (21 RRF, 4 SVOG), 14 criminal
convictions, and more than $61 million in recoveries. The OIG
has received more than 1,000 complaints related to these
programs. According to the OIG, while the number of
investigations appears modest, each case is complex, involving
layered transactions, false documentation, and financial
concealment, and may involve multiple grants. Therefore, the
impact per case would remain high.\13\
---------------------------------------------------------------------------
\12\Restaurant Revitalization Fund, U.S. Small Bus. Admin. (Oct. 3,
2024), https://www.sba.gov/funding-programs/loans/covid-19-relief-
options/restaurant-revitalization-fund#program-details (last visited
Jul. 15, 2025).
\13\Email from the Off. of Inspector Gen., U.S. Small Bus. Admin.
to the H. Comm. on Small Bus. Democrats (Jul. 14, 2025) (on file with
the H. Comm. on Small Bus.).
---------------------------------------------------------------------------
It is important to note, that SBA requires proper funding
and staffing. Recent investigative news reports found that some
of the spending by celebrities who received SVOGs could be
questionable.\14\ As of December 19, 2024, there were 1,892
active SVOG awards, totaling approximately $3.2 billion.\15\
SBA had 109 employees reviewing these awards, however, the
number was expected to drop to 28 employees after January 31
due to lack of funding.\16\
---------------------------------------------------------------------------
\14\Jack Newsham & Katherine Long, How rich musicians billed
American taxpayers for luxury hotels, shopping sprees, and million-
dollar bonuses, Bus. Insider (Dec. 18, 2024), https://
www.businessinsider.com/lil-wayne-chris-brown-covid-relief-funds-svog-
grant-2024-12.
\15\Email from the Off. of Inspector Gen., U.S. Small Bus. Admin.
to the H. Comm. on Small Bus. Democrats (Dec. 19, 2024) (on file with
the H. Comm. on Small Bus.).
\16\Briefing with U.S. Small Bus. Admin. (Washington, DC).
---------------------------------------------------------------------------
The Independent Auditor's report made recommendations,
however, without sufficient funds specifically dedicated to the
oversight of the SVOG grants, as well as other pandemic
programs, SBA may not be able to fully recover monies related
to ineligible expenses.
On March 21, 2025, SBA Administrator Kelly Loeffler
announced an agency wide reorganization, which among other
things, includes a 43 percent workforce reduction to ``reverse
the broad and costly expansion of the SBA under the Biden
administration.''\17\ Significant reduction in staff will
impede SBA's ability to recover improper and fraudulent
payments.
\17\Press Release, U.S. Small Bus. Admin., Small Business
Administration Announces Agency-Wide Reorganization (Mar. 21, 2025),
https://www.sba.gov/article/2025/03/21/small-business-
administration-announces-agency-wide-reorganization.
Nydia M. Velazquez,
Ranking Member.
[all]