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H.R. 3202, EIDL Oversight Act of 2021

Summary

House bill 3202, the EIDL Oversight Act of 2021, was introduced May 13, 2021 by Mr. LUETKEMEYER, with cosponsors named in the heading, and referred to the Committee on Small Business. It is a bill to amend the Small Business Act and the CARES Act to establish oversight requirements for economic injury disaster loans and advances. Section 2 adds a paragraph (16) to the Small Business Act directing the Administrator to establish or strengthen controls so that loan proceeds are deposited in a legitimate account of a borrower, to ensure that 2 employees of the Administration approve each application, and to establish a system to verify the identity of a borrower using photo identification.

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Issuer
Congressional materials
Document type
Bills Bills 117Hr3202Ih Bills 117Hr3202Ih
Case
Bills Bills 117Hr3202Ih Bills 117Hr3202Ih

Cite this document

“H.R. 3202, EIDL Oversight Act of 2021.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr3202ih-bills-117hr3202ih/, SHA-256 895981a60e24a7ab4bc5567757064f856ddd98da439495dfbe05d70edbb4691d.

Full text

                                                                                                                                                                          I




                                                                       117TH CONGRESS
                                                                          1ST SESSION
                                                                                                             H. R. 3202
                                                                       To amend the Small Business Act and the CARES Act to establish oversight
                                                                           requirements for economic injury disaster loans and advances, and for
                                                                           other purposes.




                                                                                     IN THE HOUSE OF REPRESENTATIVES
                                                                                                    MAY 13, 2021
                                                                       Mr. LUETKEMEYER (for himself, Mr. WILLIAMS of Texas, Mr. HAGEDORN,
                                                                           Mr. STAUBER, Mr. MEUSER, Ms. TENNEY, Mr. GARBARINO, Mrs. KIM
                                                                           of California, Ms. VAN DUYNE, Mr. DONALDS, Ms. SALAZAR, and Mr.
                                                                           FITZGERALD) introduced the following bill; which was referred to the
                                                                           Committee on Small Business




                                                                                                                 A BILL
                                                                       To amend the Small Business Act and the CARES Act
                                                                          to establish oversight requirements for economic injury
                                                                          disaster loans and advances, and for other purposes.

                                                                         1              Be it enacted by the Senate and House of Representa-
                                                                         2 tives of the United States of America in Congress assembled,
                                                                         3     SECTION 1. SHORT TITLE.

                                                                         4              This Act may be cited as the ‘‘EIDL Oversight Act
                                                                         5 of 2021’’.




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                                                                                                                                  2
                                                                         1     SEC. 2. OVERSIGHT REQUIREMENTS FOR ECONOMIC IN-

                                                                         2                             JURY DISASTER LOANS AND ADVANCES.

                                                                         3              (a) ECONOMIC INJURY DISASTER LOANS.—Section
                                                                         4 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
                                                                         5 amended by inserting after paragraph (15) the following
                                                                         6 new paragraph:
                                                                         7                        ‘‘(16) OVERSIGHT                     REQUIREMENTS FOR ECO-

                                                                         8              NOMIC INJURY DISASTER LOANS.—With respect to a

                                                                         9              loan made under paragraph (2), the Administrator
                                                                       10               shall take such action as necessary to—
                                                                       11                                  ‘‘(A) establish or strengthen controls to en-
                                                                       12                         sure that loan proceeds are deposited in a legiti-
                                                                       13                         mate account of a borrower;
                                                                       14                                  ‘‘(B) ensure that any modification of a
                                                                       15                         loan application after lender approval of such
                                                                       16                         loan is reviewed by an employee of the Adminis-
                                                                       17                         tration;
                                                                       18                                  ‘‘(C) establish or strengthen controls to—
                                                                       19                                          ‘‘(i) ensure that multiple loans are
                                                                       20                                  provided only to eligible borrowers; and
                                                                       21                                          ‘‘(ii) prevent the erroneous duplication
                                                                       22                                  of loans, including by establishing a system
                                                                       23                                  to verify the identity of a borrower using
                                                                       24                                  photo identification;




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                                                                       25                                  ‘‘(D) verify the applicant is a legitimate
                                                                       26                         borrower with the appropriate State or local
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                                                                         1                        agency through tax returns, documentation re-
                                                                         2                        lating to incorporation or status as a nonprofit
                                                                         3                        organization, or another method;
                                                                         4                                 ‘‘(E) ensure that 2 employees of the Ad-
                                                                         5                        ministration approve each application for a loan
                                                                         6                        under paragraph (2) and eliminate any proc-
                                                                         7                        esses of the Administration that allow for si-
                                                                         8                        multaneous approval of multiple loan applica-
                                                                         9                        tions;
                                                                       10                                  ‘‘(F) require an individual employee of the
                                                                       11                         Administration to contact applicants who sub-
                                                                       12                         mit multiple loan applications from the same
                                                                       13                         Internet Protocol addresses, email addresses, or
                                                                       14                         physical addresses, or with the same bank ac-
                                                                       15                         count number, to verify eligibility of such appli-
                                                                       16                         cants; and
                                                                       17                                  ‘‘(G) with respect to a borrower of a loan
                                                                       18                         made under paragraph (2) because of the
                                                                       19                         COVID–19 pandemic—
                                                                       20                                          ‘‘(i) ensure that such borrower is not
                                                                       21                                  included on the ‘Do Not Pay List’ of the
                                                                       22                                  Department of the Treasury (as described
                                                                       23                                  under section 3354 of title 31, United




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                                                                       24                                  States Code);




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                                                                         1                                         ‘‘(ii) ensure that an employer identi-
                                                                         2                                 fication number on an application for such
                                                                         3                                 a loan was registered before February 15,
                                                                         4                                 2020;
                                                                         5                                         ‘‘(iii) prevent duplicate loan applica-
                                                                         6                                 tions with the same employer identification
                                                                         7                                 number or social security number; and
                                                                         8                                         ‘‘(iv) establish a system to prevent
                                                                         9                                 disbursement of such loans to applicants
                                                                       10                                  that submit more than 1 loan application
                                                                       11                                  with the same employer identification num-
                                                                       12                                  ber, social security number, email address-
                                                                       13                                  es, physical addresses, or bank account
                                                                       14                                  number, or from the same Internet Pro-
                                                                       15                                  tocol address.’’.
                                                                       16               (b) EIDL ADVANCES.—Section 1110(e) of the
                                                                       17 CARES Act (15 U.S.C. 9009(e)) is amended by adding
                                                                       18 at the end the following new paragraph:
                                                                       19                         ‘‘(9) OVERSIGHT                     REQUIREMENTS.—With                  re-
                                                                       20               spect to an advance made under this subsection, the
                                                                       21               Administrator shall take such action as necessary
                                                                       22               to—
                                                                       23                                  ‘‘(A) ensure that the advance was depos-




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                                                                       24                         ited in a legitimate account of an individual;




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                                                                         1                                 ‘‘(B) ensure that any modification of a re-
                                                                         2                        quest for an advance is reviewed by an em-
                                                                         3                        ployee of the Administration;
                                                                         4                                 ‘‘(C) prevent the erroneous duplication of
                                                                         5                        advances;
                                                                         6                                 ‘‘(D) ensure that an employer identifica-
                                                                         7                        tion number included in a request for an ad-
                                                                         8                        vance—
                                                                         9                                         ‘‘(i) was registered before February
                                                                       10                                  15, 2020; and
                                                                       11                                          ‘‘(ii) is not registered to a person in-
                                                                       12                                  cluded on the ‘Do Not Pay List’ of the De-
                                                                       13                                  partment of the Treasury (as described
                                                                       14                                  under section 3354 of title 31, United
                                                                       15                                  States Code);
                                                                       16                                  ‘‘(E) prevent duplicate requests for an ad-
                                                                       17                         vance with the same employer identification
                                                                       18                         number or social security number; and
                                                                       19                                  ‘‘(F) prevent disbursement of advances to
                                                                       20                         applicants that submit more than 1 request
                                                                       21                         with the same employer identification number,
                                                                       22                         social security number, email addresses, phys-
                                                                       23                         ical addresses, or bank account number, or




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                                                                       24                         from the same Internet Protocol address.’’.




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                                                                         1              (c) TARGETED EIDL ADVANCES.—Section 331 of
                                                                         2 the Economic Aid to Hard-Hit Small Businesses, Non-
                                                                         3 profits, and Venues Act (Public Law 116–260) is amended
                                                                         4 by adding at the end the following new subsection:
                                                                         5              ‘‘(i) OVERSIGHT REQUIREMENTS.—With respect to a
                                                                         6 payment made under this section, the Administrator shall
                                                                         7 take such action as necessary to—
                                                                         8                        ‘‘(1) establish or strengthen controls to ensure
                                                                         9              that the payment is deposited in a legitimate ac-
                                                                       10               count of a recipient of a payment;
                                                                       11                         ‘‘(2) ensure that any modification of a request
                                                                       12               for a payment is reviewed by an employee of the Ad-
                                                                       13               ministration;
                                                                       14                         ‘‘(3) establish or strengthen controls to prevent
                                                                       15               the erroneous duplication of payments under this
                                                                       16               section, including by establishing a system to verify
                                                                       17               the identity of an applicant using photo identifica-
                                                                       18               tion;
                                                                       19                         ‘‘(4) verify the applicant is a legitimate appli-
                                                                       20               cant for a payment with the appropriate State or
                                                                       21               local agency through tax returns, documentation re-
                                                                       22               lating to incorporation or status as a nonprofit orga-
                                                                       23               nization, or another method;




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                                                                       24                         ‘‘(5) ensure that 2 employees of the Adminis-
                                                                       25               tration approve each request for a payment and


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                                                                         1              eliminate any processes of the Administration that
                                                                         2              allow for simultaneous approval of multiple ad-
                                                                         3              vances;
                                                                         4                        ‘‘(6) require an individual employee of the Ad-
                                                                         5              ministration to contact applicants who submit mul-
                                                                         6              tiple requests for a payment from the same Internet
                                                                         7              Protocol addresses, email addresses, or physical ad-
                                                                         8              dresses, or with the same bank account number, to
                                                                         9              verify eligibility of such applicants;
                                                                       10                         ‘‘(7) ensure that an employer identification
                                                                       11               number included in a request for a payment—
                                                                       12                                  ‘‘(A) was registered before February 15,
                                                                       13                         2020; and
                                                                       14                                  ‘‘(B) is not registered to a person included
                                                                       15                         on the ‘Do Not Pay List’ of the Department of
                                                                       16                         the Treasury (as described under section 3354
                                                                       17                         of title 31, United States Code);
                                                                       18                         ‘‘(8) prevent duplicate requests for a payment
                                                                       19               with the same employer identification number or so-
                                                                       20               cial security number; and
                                                                       21                         ‘‘(9) establish a system to prevent disbursement
                                                                       22               of payments to applicants that submit more than 1
                                                                       23               request with the same employer identification num-




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                                                                       24               ber, social security number, email addresses, phys-




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                                                                         1              ical addresses, or bank account number, or from the
                                                                         2              same Internet Protocol address.’’.
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