H. Rept. 118–182: IG Quarterly Report on COVID-19 Loan Fraud
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Summary
House Report 118–182 of the 118th Congress, submitted September 1, 2023 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 4666, a bill to require the Inspector General of the Small Business Administration to submit a quarterly report on fraud relating to certain COVID–19 loans. The committee reports the bill favorably without amendment and recommends that it pass. The report states the bill requires quarterly reports for two years on PPP loans and COVID–19 EIDLs, including total loan amounts, new and suspected fraud cases, fraud types and cases resolved. It cites the SBA OIG estimate of $200 billion in potentially fraudulent loans and the SBA figure of $36 billion, discussed at a July 13, 2023 hearing. The committee ordered the bill reported on July 18, 2023 with no amendments offered.
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118TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 118–182
TO REQUIRE THE INSPECTOR GENERAL OF THE SMALL BUSINESS ADMIN-
ISTRATION TO SUBMIT A QUARTERLY REPORT ON FRAUD RELATING TO
CERTAIN COVID–19 LOANS
SEPTEMBER 1, 2023.—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
[To accompany H.R. 4666]
The Committee on Small Business, to whom was referred the bill
(H.R. 4666) to require the Inspector General of the Small Business
Administration to submit a quarterly report on fraud relating to
certain COVID–19 loans, having considered the same, reports fa-
vorably thereon without amendment and recommends that the bill
do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................... 1
II. Need for Legislation ...................................................................................... 2
III. Hearings ......................................................................................................... 2
IV. Committee Consideration .............................................................................. 2
V. Committee Votes ............................................................................................ 2
VI. Section-by-Section of H.R. 4666 .................................................................... 5
VII. Congressional Budget Office Cost Estimate ................................................ 5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 5
IX. Oversight Findings and Recommendations ................................................. 5
X. Performance Goals and Objectives ............................................................... 5
XI. Statement of Duplication of Federal Programs ........................................... 6
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff Ben-
efits .............................................................................................................. 6
XIII. Federal Mandates Statement ....................................................................... 6
XIV. Federal Advisory Committee Statement ...................................................... 6
XV. Applicability to Legislative Branch .............................................................. 6
XVI. Statement of Constitutional Authority ........................................................ 6
I. PURPOSE AND BILL SUMMARY
H.R. 4666 was introduced by Rep. Aaron Bean (R–FL) and Rep.
Kweisi Mfume (D–MD) on July 17, 2023. The purpose of H.R. 4666
is to require the Inspector General of the Small Business Adminis-
tration to submit a quarterly report to Congress for two years
39–006
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which provides updated information concerning the ongoing fraud
investigations of Paycheck Protection Program (PPP) loans and
COVID–19 Economic Injury Disaster Loans (EIDL).
II. NEED FOR LEGISLATION
H.R. 4666 requires the Office of the Inspector General (OIG) of
the SBA submit a report to Congress every quarter for two years
which provides updated information concerning the ongoing fraud
investigations of PPP loans and COVID–19 EIDLs. Specifically, the
report must include the total dollar amount of all covered loans
that were made, the number of both new fraud cases and suspected
fraud cases, the type of fraud identified in those cases, and the
number of fraud cases resolved to date.
According to the SBA OIG White Paper Report 23–09, COVID–
19 Pandemic EIDL and PPP Loan Fraud Landscape, an estimated
$200 billion in potentially fraudulent COVID–19 EIDLs and PPP
loans were disbursed by the SBA.1 As the OIG continues working
on the tens of thousands of investigative leads on alleged fraud,
waste, and abuse of taxpayer resources, it is important for Con-
gress to be kept apprised of the extent of the fraud and the
progress in resolving ongoing cases.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 4666. On July 13, 2023, during the
Full Committee hearing, ‘‘Stolen Taxpayer Funds: Reviewing the
SBA and OIG Reports of Fraud in Pandemic Lending Programs,’’
the Committee examined two recent and contradicting reports that
exposed fraud in the COVID–19 pandemic lending programs. The
SBA OIG report concluded the SBA disbursed more than $200 bil-
lion in potentially fraudulent loans through pandemic relief pro-
grams, while the SBA reported the fraud in these programs is clos-
er to $36 billion.
In addition to the discrepancy of more than $160 billion in fraud
between the two reports, the Inspector General testified that he is
committed to keeping the House Committee on Small Business up-
dated amid the more than 100 years of investigative casework re-
quired to look into the over 90,000 actionable leads from hotline
complaints that they received.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on July 18, 2023, and ordered H.R. 4666 re-
ported to the House of Representatives. During the markup, no
amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 4666 to the House of Representatives
at 11:00 AM.
1 U.S. SMALL BUS. ADMIN. OFFICE OF INSPECTOR GEN., REPORT 23–09, WHITE PAPER ON
COVID–19 PANDEMIC EIDL AND PPP LOAN FRAUD LANDSCAPE (JUN. 27, 2023).
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VI. SECTION-BY-SECTION OF H.R. 4666
Section 1. Report on fraud relating to certain COVID–19 loans
This section requires that the Inspector General of the SBA sub-
mit a report to Congress every quarter that details the number of
borrowers it has found to have engaged in fraud with respect to
PPP loans and EIDLs. This report must include the total dollar
amount of all covered loans made, the number and type of fraud
found in both new and suspected fraud cases, and the number of
fraud cases resolved to date.
Section 2. Compliance with CUTGO
This section does not authorize any additional appropriations for
this bill.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(d)(1) of House rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office pursuant to section 402 of the Con-
gressional Budget Act of 1974. The Committee has requested but
not received from the Director of the Congressional Budget Office
a cost estimate for the Committee’s provisions. Once available, the
cost estimate will be published in the Congressional Record.
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 Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, 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 pursu-
ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
mittee does not believe that there will be any additional costs at-
tributable to this legislation. H.R. 4666 does not direct new spend-
ing.
IX. OVERSIGHT FINDINGS AND RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
4666 are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(1) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 4666 are to require a quarterly report from
the SBA OIG to Congress over a two-year period that includes up-
dated data from investigative casework that includes the total dol-
lar amount of all covered PPP and EIDL loans that have been
made, the number of both new fraud cases and suspected fraud
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cases, the type of fraud identified in those cases, and the number
of fraud cases resolved to date.
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. 4666 is known to be dupli-
cative 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 As-
sistance.
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 con-
tain 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 man-
dates 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 Con-
gressional 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, § 8,
cl.1 of the Constitution of the United States.
Æ
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