PPP and Bank Fraud Enforcement Harmonization Act of 2022, H.R. 7352 — Congressional Record, House, June 7, 2022
Summary
This is H5249 of the Congressional Record, House, June 7, 2022, under the heading PPP and Bank Fraud Enforcement Harmonization Act of 2022, with interleaved columns. Ms. Velazquez moves to suspend the rules and pass H.R. 7352, to amend the Small Business Act to extend the statute of limitation for fraud by borrowers under the Paycheck Protection Program, and the bill text sets a limit of not later than 10 years after the offense was committed. Ms. Velazquez states that, under current law, nonbank PPP loans are often prosecuted as wire fraud with a 5-year statute of limitations, while bank-originated loans are prosecuted as bank fraud with a 10-year statute. Mr. Luetkemeyer speaks in support of the bill, and the speakers state that the SBA Office of Inspector General identified over 70,000 potentially fraudulent PPP loans totaling over $4.6 billion.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“PPP and Bank Fraud Enforcement Harmonization Act of 2022, H.R. 7352 — Congressional Record, House, June 7, 2022.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2022-06-07-crec-2022-06-07-pt1-pgh5249-9d4fe20528/
, SHA-256 08d61ad1ecabe46c13a19a4b465444557d182ffdcc75958a3220f35e47a14447.Full text
June 7, 2022 CONGRESSIONAL RECORD — HOUSE H5249
COURTNEY) that the House suspend the There was no objection. we must ensure prosecutors have
rules and pass the bill, H.R. 6087, as Ms. VELÁZQUEZ. Madam Speaker, I enough time to fully investigate and
amended. yield myself such time as I may con- bring fraud charges.
The question was taken. sume. As of now, the statute of limitations
The SPEAKER pro tempore. In the Madam Speaker, I thank all the for nonbank PPP loans secured in April
opinion of the Chair, two-thirds being members on the Small Business Com- 2020 will expire in 2025 in most cases,
in the affirmative, the ayes have it. mittee for their work and support of less than 3 years away. That is not
Mrs. GREENE of Georgia. Madam the bills before us. enough time given the complexity of
Speaker, on that I demand the yeas The legislation we are considering is, these fraud schemes.
and nays. once again, a product of our commit- As the chair of the Small Business
The SPEAKER pro tempore. Pursu- tee’s bipartisanship and shows that we Committee, I take my role over the
ant to section 3(s) of House Resolution are committed to our Nation’s entre- SBA and its program very seriously.
8, the yeas and nays are ordered. preneurs. That is why I sponsored this bill to
Pursuant to clause 8 of rule XX, fur- The seven bipartisan bills we are con- give the DOJ, FBI, and State and local
ther proceedings on this motion are sidering will promote economic growth law enforcement the resources and
postponed. on our Main Streets in numerous ways. time they need to bring these bad ac-
f The first two reaffirm our commit- tors to justice.
ment to being good stewards of tax- Madam Speaker, I thank Ranking
PPP AND BANK FRAUD ENFORCE-
payer dollars, and the importance of Member LUETKEMEYER for joining me
MENT HARMONIZATION ACT OF
holding pandemic fraudsters account- in leading this effort, and to the mem-
2022
able for their crimes. bers of the Small Business Committee
Ms. VELÁZQUEZ. Madam Speaker, I The second pair of bills under consid- for their support.
move to suspend the rules and pass the eration will help small firms attract Madam Speaker, I urge my col-
bill (H.R. 7352) to amend the Small and retain qualified employees by leagues to support this bill, and I re-
Business Act to extend the statute of boosting apprenticeships and career serve the balance of my time.
limitation for fraud by borrowers under and technical education programs.
the Paycheck Protection Program, and b 1545
Finally, we will consider three bills
for other purposes. to improve the Federal procurement Mr. LUETKEMEYER. Madam Speak-
The Clerk read the title of the bill. process and promote opportunities for er, I yield myself such time as I may
The text of the bill is as follows: small businesses to secure contracts consume.
H.R. 7352 from the Federal Government. Madam Speaker, I rise in support of
Be it enacted by the Senate and House of Rep- The first bill under consideration H.R. 7352, the PPP and Bank Fraud En-
resentatives of the United States of America in today is H.R. 7352, the PPP and Bank forcement Harmonization Act of 2022.
Congress assembled, Fraud Enforcement Harmonization Act Inflation and price increases con-
SECTION 1. SHORT TITLE. tinue to hinder all Americans and espe-
of 2022, introduced by myself and our
This Act may be cited as the ‘‘PPP and cially small businesses and their work-
ranking member from Missouri (Mr.
Bank Fraud Enforcement Harmonization Act ers. Prices at the pump and prices on
of 2022’’. LUETKEMEYER).
H.R. 7352 sets the statute of limita- the shelves rattle the mettle of the Na-
SEC. 2. FRAUD ENFORCEMENT HARMONIZATION.
(a) PAYCHECK PROTECTION PROGRAM.—Sec- tions for all cases of PPP fraud at 10 tion’s job creators. Month after month,
tion 7(a)(36) of the Small Business Act (15 years, consistent with the statute of small businesses face price increases
U.S.C. 636(a)(36)) is amended by adding at the limitations for bank fraud. that not only prevent expansion and
end the following new subparagraph: Under current law, bank-originated growth but also hamper recovery.
‘‘(W) FRAUD ENFORCEMENT HARMONI- PPP fraud is being prosecuted as bank These economic conditions must im-
ZATION.—Notwithstanding any other provi- fraud, which has a 10-year statute of prove, and we must get a firm grip on
sion of law, any criminal charge or civil en- limitations. reckless spending coming out of Wash-
forcement action alleging that a borrower ington. Similarly, we must take on a
At the same time, PPP loans origi-
engaged in fraud with respect to a covered
loan guaranteed under this paragraph shall nated by nonbank lenders, including stronger oversight role when it comes
be filed not later than 10 years after the of- fintech companies, are often pros- to investigating fraudulent COVID–19
fense was committed.’’. ecuted as wire fraud, which carries a 5- behavior.
(b) PAYCHECK PROTECTION PROGRAM SECOND year statute of limitations. When America’s small businesses
DRAW LOANS.—Section 7(a)(37) of the Small To address this difference, the bill faced State and local COVID shutdown
Business Act (15 U.S.C. 636(a)(37)) is amended extends the time for prosecutors to orders, Congress moved quickly and
by adding at the end the following new sub- bring charges to 10 years for all cases stood up the Paycheck Protection Pro-
paragraph: gram. To ensure small businesses and
HARMONI-
of PPP fraud, regardless of whether the
‘‘(P) FRAUD ENFORCEMENT
ZATION.—Notwithstanding any other provi-
lender was a bank or fintech company. their workers received PPP relief in an
sion of law, any criminal charge or civil en- SBA’s Office of Inspector General efficient and speedy manner, Congress
forcement action alleging that a borrower identified over 70,000 PPP loans total- required private-sector lenders to be
engaged in fraud with respect to a covered ing over $4.6 billion in potentially the drivers of the program. The result
loan guaranteed under this paragraph shall fraudulent PPP loans, many of which speaks volumes with nearly $800 billion
be filed not later than 10 years after the of- originated with fintechs. disbursed to small businesses.
fense was committed.’’. According to researchers at the Uni- As the Republican leader on the Com-
The SPEAKER pro tempore. Pursu- versity of Texas at Austin, fintech mittee on Small Business, I often hear
ant to the rule, the gentlewoman from companies handled 75 percent of PPP about how important the program was
New York (Ms. VELÁZQUEZ) and the loans connected to fraud by the DOJ, for small businesses across our great
gentleman from Missouri (Mr. LUETKE- despite originating only 15 percent of Nation. It was the lifeline that many of
MEYER) each will control 20 minutes. the loans overall. them needed to be able to survive.
The Chair recognizes the gentle- As of March 10, the DOJ’s efforts While most lenders’ fraud defenses
woman from New York. have resulted in criminal charges were strong due to Federal financial
GENERAL LEAVE against over a thousand defendants rules such as Know Your Customer,
Ms. VELÁZQUEZ. Madam Speaker, I with alleged losses exceeding $1.1 bil- fraudulent behavior did take place. In-
ask unanimous consent that all Mem- lion and over 240 civil investigations vestigations are underway, but more
bers have 5 legislative days in which to into more than 1,800 individuals and time will be needed and required to
ctelli on DSK11ZRN23PROD with HOUSE
revise and extend their remarks and in- entities for alleged misconduct in con- bring justice to those who defrauded
clude extraneous material on the meas- nection with pandemic relief loans to- the program.
ure under consideration. taling more than $6 billion. Depending on the type of lender that
The SPEAKER pro tempore. Is there Given the extent of potential fraud, participated in the program, the cur-
objection to the request of the gentle- especially among the subset of PPP rent statute of limitations ranges from
woman from New York? loans originated by nonbank lenders, 5 years for wire fraud that categorizes
VerDate Sep 11 2014 05:10 Jun 08, 2022 Jkt 029060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\CR\FM\K07JN7.022 H07JNPT1
H5250 CONGRESSIONAL RECORD — HOUSE June 7, 2022
many fintech lenders, who have been Fraud Enforcement Harmonization Act of COVID–19 EIDL FRAUD STATUTE
associated with problematic loans, to 2022’’ extends the statute of limitation and OF LIMITATIONS ACT OF 2022
10 years for banks and credit unions provides a timeframe in which criminal Ms. VELÁZQUEZ. Madam Speaker, I
that fall under bank fraud. charges can be filed against those accused of move to suspend the rules and pass the
H.R. 7352, the PPP and Bank Fraud fraud in connection with the ‘‘Paycheck Pro- bill (H.R. 7334) to extend the statute of
Enforcement Harmonization Act of tection Program’’ and ‘‘Paycheck Protection limitations for fraud by borrowers
2022, takes important steps to create Program Second Draw Loans’’ program. under certain COVID–19 economic in-
an across-the-board 10-year statute of The Paycheck Protection Program com- jury disaster loan programs of the
limitations on all loans handed out monly known as the ‘‘PPP’’ loan was created Small Business Administration, and for
through the PPP program. This change as a part of the CARES Act—the Covid Aid, other purposes.
will ensure all law enforcement and in- Relief, and Economic Security Act—of March The Clerk read the title of the bill.
spectors general have the time to track 2020. The text of the bill is as follows:
down all wrongdoing no matter the The PPP loan was established to help small H.R. 7334
type of lender. businesses survive through the COVID–19 Be it enacted by the Senate and House of Rep-
H.R. 7352 was created via voice vote pandemic of 2020, so that they may be able resentatives of the United States of America in
in committee. I thank the chair for to pay their employees and keep their busi- Congress assembled,
treating this issue with the priority it SECTION 1. SHORT TITLE.
nesses operating during the tumultuous chal-
deserves and for working with me on This Act may be cited as the ‘‘COVID–19
lenges imposed by COVID–19. EIDL Fraud Statute of Limitations Act of
the bills before us today. This bill is a I urge everyone to remember the times be- 2022’’.
step in the right direction, and I urge fore the recent reemergence of a ‘‘business as SEC. 2. EXTENSION OF STATUTE OF LIMITATIONS
my colleagues to support it. usual’’ stance that many have now taken, and FOR CERTAIN COVID–19 ECONOMIC
In closing, Madam Speaker, when remember the omnipresent news reports INJURY DISASTER LOAN PROGRAMS.
Congress raced to save American small (a) CERTAIN ECONOMIC INJURY DISASTER
about the horrific and ever-increasing death
businesses, criminal actors lurked in LOANS.—Section 7(b) of the Small Business
toll. Act (15 U.S.C. 636(b)) is amended by inserting
the shadows. Although one of the most Any person who was willing, for their own fi- after paragraph (15) the following new para-
popular COVID–19 relief measures, the nancial gain, to take advantage of that situa- graph:
PPP program, has firmly moved into tion and the emergency funding that was in- ‘‘(16) STATUTE OF LIMITATIONS.—Notwith-
the loan forgiveness period, the inves- tended for those who needed it most during standing any other provision of law, any
tigations surrounding illicit behavior the gruesome pandemic deserves to be pun- criminal charge or civil enforcement action
have just begun. ished for their heinous actions. alleging that a borrower engaged in fraud
H.R. 7352 will wisely ensure all loans with respect to a loan made under this sub-
H.R. 7352 would extend the statute of limi- section in response to COVID–19 during the
handed out through the program, no tation for prosecution of loans classified within covered period (as defined in section 1110(a)
matter the type of lender, have a stat- the PPP and Economic Injury Disaster Loan of the CARES Act) shall be filed not later
ute of limitations window of 10 years. (EIDL) categories under the Small Business than 10 years after the offense was com-
According to some of the most recent Act. mitted.’’.
SBA inspector general reports, nearly As it stands now, bank-originated PPP fraud (b) EIDL ADVANCES.—Section 1110(e) of the
$4.6 billion of the $800 billion could be is being prosecuted as bank fraud which car- CARES Act (15 U.S.C. 9009(e)) is amended by
potentially fraudulent. While these adding at the end the following new para-
ries a 10-year statute of limitations. graph:
numbers will surely change, it is para- In contrast, loans that originated through fi-
mount that we provide law enforce- ‘‘(9) STATUTE OF LIMITATIONS.—Notwith-
nancial technology avenues—known as standing any other provision of law, any
ment the runway to track down all Fintech—are currently subject to only a 5-year criminal charge or civil enforcement action
fraudulent behavior. These are Amer- statute of limitations because they are gov- alleging that a borrower engaged in fraud
ican taxpayer dollars on the line, and erned by wire fraud laws. with respect to the use of an advance re-
they must be protected. ceived under this subsection shall be filed
H.R. 7352 will ensure that we are doing our
Madam Speaker, I urge my col- not later than 10 years after the offense was
duty to uphold justice and gather all necessary committed.’’.
leagues to support this legislation, and
information and evidence, while extending the (c) TARGETED EIDL ADVANCES.—Section 331
I yield back the balance of my time.
reach of the law against these violators. of the Economic Aid to Hard-Hit Small Busi-
Ms. VELÁZQUEZ. Madam Speaker, I
PPP fraud comes at the expense of all nesses, Nonprofits, and Venues Act (15 U.S.C.
yield myself the balance of my time. 9009b) is amended by adding at the end the
Madam Speaker, we must continue Americans, tax-paying Americans who work
hard for the money they earn. following new subsection:
supporting the work of our Federal, ‘‘(i) STATUTE OF LIMITATIONS.—Notwith-
State, and local law enforcement agen- H.R. 7352 will ensure that there’s ample standing any other provision of law, any
cies as they investigate and prosecute time allotted for special attention to the com- criminal charge or civil enforcement action
pandemic loan fraud. It appears the plex nature of PPP loan fraud. alleging that a borrower engaged in fraud
Ensuring that the timeframe is fair and com- with respect to the use of any amount re-
bulk of PPP loan fraud was originated
mensurate with the severity of the nature of ceived pursuant to this section shall be filed
by nonbank lenders and fintech compa- not later than 10 years after the offense was
nies, which may not be prosecuted as loan fraud, H.R. 7352 will make sure that jus-
committed.’’.
bank fraud and is therefore subject to a tice is served in every regard.
I ask that each of my colleagues joins me The SPEAKER pro tempore. Pursu-
much shorter statute of limitations. ant to the rule, the gentlewoman from
This presents the possibility that in support of H.R. 7352.
The SPEAKER pro tempore. The New York (Ms. VELÁZQUEZ) and the
pandemic loan fraudsters may get off gentleman from Missouri (Mr. LUETKE-
the hook because the statute of limita- question is on the motion offered by
MEYER) each will control 20 minutes.
tions expired. We simply cannot let the gentlewoman from New York (Ms.
The Chair recognizes the gentle-
this happen. This bill would give law VELÁZQUEZ) that the House suspend the woman from New York.
enforcement agencies the time needed rules and pass the bill, H.R. 7352.
GENERAL LEAVE
to hold fraudsters accountable and The question was taken.
Ms. VELÁZQUEZ. Madam Speaker, I
bring them to justice. The SPEAKER pro tempore. In the ask unanimous consent that all Mem-
Once again, I thank our ranking opinion of the Chair, two-thirds being bers may have 5 legislative days in
member, Mr. LUETKEMEYER, for work- in the affirmative, the ayes have it. which to revise and extend their re-
ing with me to lead this important ef- Mrs. GREENE of Georgia. Madam marks and include extraneous material
fort, and all the members of the Small Speaker, on that I demand the yeas on the measure under consideration.
Business Committee for their bipar- and nays. The SPEAKER pro tempore. Is there
ctelli on DSK11ZRN23PROD with HOUSE
tisan work on this bill. The SPEAKER pro tempore. Pursu- objection to the request of the gentle-
Madam Speaker, I urge my col- ant to section 3(s) of House Resolution woman from New York?
leagues to vote ‘‘yes,’’ and I yield back 8, the yeas and nays are ordered. There was no objection.
the balance of my time. Pursuant to clause 8 of rule XX, fur- Ms. VELÁZQUEZ. Madam Speaker, I
Ms. JACKSON LEE. Madam Speaker, I rise ther proceedings on this motion are yield myself such time as I may con-
in support of H.R. 7352—the ‘‘PPP and Bank postponed. sume.
VerDate Sep 11 2014 05:10 Jun 08, 2022 Jkt 029060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\CR\FM\K07JN7.024 H07JNPT1
File and source
- File
- CREC_crec-2022-06-07_crec-2022-06-07-pt1-pgh5249.pdf
- Size
- 255,890 bytes
- SHA-256
- 08d61ad1ecabe46c13a19a4b465444557d182ffdcc75958a3220f35e47a14447
- Original
- www.govinfo.gov