House Report 117-515 — Resolution of Inquiry: Role of the Department of the Treasury in the Paycheck Protection Program

Summary

House Report 117–515 is the report of the Committee on Small Business, submitted by Ms. Velázquez and ordered to be printed September 28, 2022, with minority views, on H. Res. 1298, a resolution of inquiry about the Department of the Treasury's role in the Paycheck Protection Program. The Committee reports the resolution with amendments and without recommendation. As amended, the resolution directs the Secretary of the Treasury to transmit, within 14 legislative days, records relating to Treasury's role in the program, other Small Business Administration loan and grant programs, and regulatory assistance for small business concerns. The report states that the resolution was introduced by Ranking Member Luetkemeyer on July 28, 2022 and explains that a resolution of inquiry is nonbinding.

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Issuer: Congressional materials
Document type: Crpt Crpt 117Hrpt515 Crpt 117Hrpt515
Case: Crpt Crpt 117Hrpt515 Crpt 117Hrpt515

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Full text

117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 117–515

RESOLUTION OF INQUIRY DIRECTING THE SECRETARY OF THE TREASURY
TO TRANSMIT CERTAIN DOCUMENTS TO THE HOUSE OF REPRESENTA-
TIVES RELATING TO THE ROLE OF THE DEPARTMENT OF THE TREAS-
URY IN THE PAYCHECK PROTECTION PROGRAM OF THE SMALL BUSI-
NESS ADMINISTRATION

SEPTEMBER 28, 2022.—Referred to the House Calendar and ordered to be printed

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

R E P O R T
together with

MINORITY VIEWS

[To accompany H. Res. 1298]

The Committee on Small Business, to whom was referred the
resolution (H. Res. 1298) of inquiry directing the Secretary of the
Treasury to transmit certain documents to the House of Represent-
atives relating to the role of the Department of the Treasury in the
Paycheck Protection Program of the Small Business Administra-
tion, having considered the same, reports thereon with amend-
ments and without recommendation.
CONTENTS
Page
I. Purpose and Summary ............................................................................... 2
II. Background and Need for Legislation ....................................................... 3
III. Hearings ....................................................................................................... 6
IV. Committee Consideration ........................................................................... 6
V. Committee Votes ......................................................................................... 6
VI. Section-by-Section for H. Res. 1298 ........................................................... 9
VII. Congressional Budget Cost Estimate ........................................................ 9
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 10
IX. Committee Oversight Findings and Recommendations ........................... 10
X. Statement of General Performance Goals and Objectives ....................... 10
XI. Duplication of Federal Programs ............................................................... 10
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 10
XIII. Federal Mandates Statement ..................................................................... 11
XIV. Federal Advisory Committee Statement ................................................... 11
XV. Applicability to Legislative Branch ........................................................... 11

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XVI. Changes in Existing Law Made by the Bill, as Reported ........................ 11
XVII. Supplemental, Additional, Dissenting, or Minority Views ...................... 11
29–008

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The amendments are as follows:
In the matter preceding paragraph (1), strike ‘‘with respect to’’
and all that follows through ‘‘including’’.
In paragraph (1), insert ‘‘with respect to the loan programs estab-
lished under paragraphs (36) and (37) of section 7(a) of the Small
Business Act (15 U.S.C. 636(a)(36)) (commonly known as the ‘Pay-
check Protection Program’),’’ before ‘‘all such’’.
In paragraph (2)—
(1) insert ‘‘with respect to the loan programs established
under paragraphs (36) and (37) of section 7(a) of the Small
Business Act (15 U.S.C. 636(a)(36)) (commonly known as the
‘Paycheck Protection Program’),’’ before ‘‘all such’’; and
(2) strike ‘‘and’’ at the end.
In paragraph (3)—
(1) insert ‘‘with respect to the loan programs established
under paragraphs (36) and (37) of section 7(a) of the Small
Business Act (15 U.S.C. 636(a)(36)) (commonly known as the
‘Paycheck Protection Program’),’’ before ‘‘all such’’; and
(2) strike the period at the end and inserting ‘‘;’’.
Add at the end the following new paragraphs:
(4) with respect to loans made under section 7(b) of
the Small Business Act (15 U.S.C. 636(b)) in response
to COVID–19, from grants under section 1110(e) of the
CARES Act (15 U.S.C. 9009(e)), from grants under
section 331 of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act (15 U.S.C.
9009b), and from grants under section 5003 of the
American Rescue Plan Act of 2021, all documents and
communications relating to the amount of funds from
such loans or grants that have been recovered from
any individual or entity that fraudulently obtained
such a loan or grant; and
(5) with respect to actions taken by the Department
of the Treasury on and after January 21, 2021, to as-
sist small business concerns (as defined under section
3 of the Small Business Act (15 U.S.C. 632)) with ad-
dressing government regulations, and all such commu-
nications between the Secretary of the Treasury and
the Administrator of the Small Business Administra-
tion relating to any guidance the Administration of-
fered Treasury in targeting regulatory assistance to
small business concerns.
Amend the title so as to read: Resolution of inquiry directing the
Secretary of the Treasury to transmit certain documents to the
House of Representatives relating to the role of the Department of
the Treasury in the Paycheck Protection Program of the Small
Business Administration and with respect to regulatory assistance
for small business concerns.
I. PURPOSE AND SUMMARY

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House Resolution 1298, as amended, is a resolution of inquiry di-
recting the Secretary of Treasury to transmit to the House of Rep-
resentatives, not later than 14 legislative days after the date of the

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3

adoption of the resolution, records relating to the role of the De-
partment of Treasury in the Paycheck Protection Program, other
loan and grant programs of the Small Business Administration,
and regulatory assistance for small business concerns.
II. BACKGROUND AND NEED FOR LEGISLATION

H. Res. 1298 was introduced by Ranking Member Blaine Luetke-
meyer (R–MO) on July 28, 2022.
Resolution of inquiry
A resolution of inquiry is a nonbinding resolution that either re-
quests or directs the President or the head of an executive depart-
ment 1 to furnish the House with factual information in the Admin-
istration’s possession.2 There are no House rules for enforcing reso-
lutions of inquiry, and they have ordinarily been complied with
pursuant to principles of comity between the Legislative and Exec-
utive branches.3
If a resolution of inquiry qualifies as privileged under clause 7
of rule XIII of the Rules of the House, a Committee has 14 legisla-
tive days to markup and file a report on the privileged resolution.
As to the reporting of the resolution, a Committee can make a fa-
vorable, adverse, or no recommendation determination in the re-
port. To be considered privileged, a resolution of inquiry must not
only be directed to the President or the head of an executive de-
partment, but it also must not have a preamble, must request only
factual information, and may not require the official to express an
opinion or undertake an investigation.4
Once the resolution of inquiry has been reported, an authorized
Member of the Committee may call up the resolution for consider-
ation.5 A Member, not authorized by the Committee, may call up
the resolution for consideration if the Committee fails to report the
resolution within the 14-day timeframe.6 The last resolution of in-
quiry to reach the House floor was in 1995.7 Prior to this Congress,
the last resolution of inquiry to be referred to this Committee was
in the 103rd Congress in 1994.8
Paycheck Protection Program
The Small Business Administration’s (SBA) Paycheck Protection
Program (PPP) was established in the CARES Act 9 as a subpro-
gram of SBA’s 7(a) loan guarantee program. Under PPP, banks and
other private lenders made fully guaranteed SBA loans to small
businesses negatively impacted by the COVID–19 pandemic. The
1 The House Parliamentarian does not consider the Small Business Administration to be an
executive department within the meaning of clause 7 of rule XIII of the Rules of the House,
however, the Department of Treasury is considered to be an executive department.
2 Christopher Davis, CRS Insight: Resolutions of Inquiry in the House, Cong. Research Serv.,
July 21, 2022, https://crsreports.congress.gov/product/pdf/IN/IN10661. Due to the pandemic, the
deadlines for Committee action on resolutions of inquiry were paused, but the pause was lifted
after the adoption of H. Res. 1232 on July 19, 2022. Id.
3 Charles W. Johnson, John V. Sullivan, and Thomas J. Wicker, Jr., House Practice: A Guide
to the Rules, Precedents, and Procedures of the House, Gov’t. Printing Office (2017), available
at https://www.govinfo.gov/content/pkg/GPO–HPRACTICE–115/pdf/GPO–HPRACTICE–115.pdf.
4 Supra note 2.
5 Supra note 3.

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6 Id.
7 See H. Res. 80, 104th Cong. (1995).
8 See H. Res. 360, 103rd Cong. (1994).
9 Pub. L. No. 116–136.

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loans were intended to assist small businesses with meeting payroll
costs and other expenses, and full loan forgiveness is offered if loan
proceeds are spent on such purposes. In total, over $800 billion was
appropriated for PPP in several pieces of legislation.
However, the initial tranche of PPP funding favored larger, bet-
ter-capitalized businesses, and left out microbusinesses and many
firms owned by women and minorities. To address this disparity,
the PPP and Health Care Enhancement Act 10 included set-asides
of newly appropriated PPP funds so that community lending insti-
tutions, including Community Development Financial Institutions
(CDFIs), SBA Certified Development Companies (CDCs), and SBA
Microloan Intermediaries could participate in the program along-
side large banks. These set-asides, as well as other policy changes
made by SBA and Treasury, were intended to maximize PPP lend-
ing in traditionally underserved business communities.11
In the beginning of the program, fraud prevention safeguards
were lowered in order to distribute loan funds more quickly. So far,
SBA’s Office of Inspector General (OIG) has identified 70,835 loans
totaling over $4.6 billion in potentially fraudulent PPP loans.12 The
Department of Treasury, under the leadership of former Secretary
Steven Mnuchin, was instrumental in implementing PPP, which in-
cluded ensuring small businesses were getting the assistance they
needed while making sure that taxpayer dollars were protected. In
particular, section 1109 of the CARES Act authorized the Depart-
ment of Treasury to include additional lending institutions as part
of PPP, and to issue regulations and guidance as necessary to im-
plement PPP.13
Moreover, PPP was designed not only to keep businesses from
closing but also to keep workers employed. There are still out-
standing academic debates as to the extent of PPP’s positive impact
on employment. According to the Brookings Institution, a consider-
able portion of PPP funding was used for businesses to pay down
debt instead of sustain payroll.14 Also, the academic literature has
shown no credible evidence that the largest PPP loans had a sub-
stantial positive employment effect in the short or medium run.15
Furthermore, researchers with the Federal Reserve Bank of Boston
found that PPP would have been ‘‘significantly more effective’’ if
the government allocated loans to the smallest firms earlier in the
program.16
10 Pub. L. No. 116–139.
11 See, e.g., U.S. Small Bus. Admin., CARES Act Section 1102 Lender Agreement—Non-Bank
and Non-Insured Depository Institution Lenders, SBA Form 3507 (04/21), https://
home.treasury.gov/system/files/136/SBA-Form-3507-PPP--Agreement-for-New-Lenders-Non-
Bank-Non-Insured-Depository-Institution-Lenders.pdf; see also, U.S. Small Bus. Admin., Interim
Final Rule on Corporate Groups and Non-Bank and Non-Insured Depository Institution Lenders
(originally posted 4/30/2020), (Apr. 30, 2020), https://home.treasury.gov/system/files/136/IFR--
Corporate-Groups-and-Non-Bank-and-Non-Insured-Depository-Institution-Lenders.pdf.
12 U.S. Small Bus. Admin. Off. of Inspector Gen., Top Management and Performance Chal-
lenges Facing the Small Business Administration in Fiscal Year 2022, (Oct. 15, 2021), https://
www.sba.gov/sites/default/files/2021-10/SBA%20OIG%20Report%2022-02.pdf.
13 Supra note 9 at § 1109.
14 WENDY EDELBERG ET AL., BROOKINGS INSTITUTION, RECESSION REMEDIES: LESSONS
LEARNED FROM THE U.S. ECONOMIC POLICY RESPONSE TO COVID–19 140 (2022), https://
www.brookings.edu/wp-content/uploads/2022/04/RR-Chapter-4-Support-for-Business.pdf.
15 Id. at 124.

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16 Gustavo Joaquim and Felipe Netto, Optimal Allocation of Relief Funds: The Case of the Pay-
check Protection Program, Federal Reserve Bank of Boston (Oct. 2021), https://
www.bostonfed.org/publications/research-department-working-paper/2021/optimal-allocation-of-
relief-funds-the-case-of-the-paycheck-protection-program.aspx.

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Currently, PPP is in the forgiveness phase of the program. The
Committee is actively monitoring the status of loan forgiveness. As
of September 5, 2022, SBA made over 10.4 million full or partial
forgiveness payments, representing 91 percent of all PPP loans.17
These payments total over $751 billion in PPP lending, rep-
resenting 95 percent of total PPP volume. However, PPP forgive-
ness data reveals a burgeoning small-dollar forgiveness gap. As of
September 5, 2022, 892,463 PPP borrowers have not submitted for-
giveness applications.18 Of these non-submissions, 848,738 are
loans $50,000 or less, representing over 95 percent of all non-sub-
missions.
Secretary of Treasury
To increase the Committee’s oversight of PPP, section 321(b) of
the Economic Aid to Hard-Hit Small Business, Nonprofits, and
Venues Act, 15 U.S.C. § 639b(b),19 required the Secretary of the
Treasury and the SBA Administrator to testify before the House
Small Business Committee within 120 days of enactment of the
Act, and not less than twice per year for the next two years. Since
the enactment of the Act in December 2020, SBA Administrator
Isabella Guzman has appeared before the House Small Business
Committee three times,20 but attempts to have Treasury Secretary
Janet Yellen testify before the Committee during the 117th Con-
gress have been unsuccessful.
It is necessary for the Committee’s oversight of this multibillion-
dollar program for the Secretary of Treasury to testify before the
Committee on the merits and operation of the program, as required
by law. The Committee is disappointed that the Secretary of Treas-
ury failed to adhere to her obligations under the Economic Aid Act.
The Committee continues to be in touch with the Department of
Treasury regarding the Secretary’s obligation to testify before the
Committee.
It is important to note that the SBA Administrator and her team
have also made themselves available for personal calls with the
Chair, the Ranking Member, and other Members on the Com-
mittee. Her Associate Administrator of Capital Access, Patrick
Kelly has also testified before Congress on SBA’s covid relief pro-
grams, including on the Restaurant Revitalization Fund, COVID
EIDL, and the Shuttered Venue Operators Grant program, and
provided answers in testimony and off the record meetings.
Amendments
H. Res. 1298 was reported to the House with two amendments.
The first adopted amendment was offered by Representative Van
Duyne (R–TX). The amendment requests all documents and com-
17 U.S. Small Bus. Admin., Forgiveness Platform Lender Submission Metrics—September 05,
(Sep. 5, 2022), https://www.sba.gov/sites/default/files/2022-09/
2022.09.05lWeekly%20Forgiveness%20ReportlPublic-508.pdf.
18 Id.
19 Pub. L. No. 116–260 [hereinafter, Economic Aid Act]. On July 17, 2020, Treasury Secretary
Steven Mnuchin and SBA Administrator Jovita Carranza testified before the House Small Busi-
ness Committee. See the H. Comm. on Small Business, 116th Cong. (Jul. 17, 2020).
20 An Examination of the SBA’s Covid–19 Programs: Hearing Before the H. Comm. on Small

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Business, 117th Cong. (May 26, 2021); A Discussion with SBA Administrator Isabella Casillas
Guzman: Hearing Before the H. Comm. on Small Business, 117th Cong. (Nov. 16, 2021); Small
Business Administration’s FY 2023 Budget: Hearing Before the H. Comm. on Small Business,
117th Cong. (Apr. 27, 2022).

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munications relating to the total amount of funding recovered from
fraudulently obtained COVID–19 relief, specifically COVID EIDLs,
EIDL Advances, Targeted Advances, and the Restaurant Revital-
ization Fund. The second adopted amendment was offered by Rep-
resentative Meuser (R–PA). The amendment requests all docu-
ments and communications relating to Treasury’s actions to assist
small businesses with addressing the impact of federal regulations.
Without recommendation
The Committee is generally not opposed to the H. Res. 1298, es-
pecially due to the failure of the Secretary to testify before the
Committee, as required by law, and the opportunity to get a clearer
picture of the policies Treasury, specifically under former Secretary
Mnuchin, could have instituted to ensure that these PPP loans
were distributed equitability in the beginning of the program. How-
ever, the Committee continues to conduct rigorous oversight of the
program, which is why the Committee believes this resolution is
not needed. In fact, this Committee came together to pass two com-
monsense bills to help investigators hold bad actors accountable by
extending the statute of limitations related to the PPP and COVID
EIDL programs at SBA to 10 years.21 Those bills were a direct re-
sult of the Committee’s oversight work and dedication to evaluating
the effectiveness of covid programs. Due to these facts, the Com-
mittee recommended that H. Res. 1298 be reported to the House
without recommendation.
III. HEARINGS

The Committee held no hearings on H. Res. 1298.
IV. COMMITTEE CONSIDERATION

The Committee on Small Business met in open session, with a
quorum being present, on September 21, 2022, and ordered H. Res.
1298, as amended, reported to the House of Representatives with-
out recommendation by a record vote of 25 yeas and 0 nays.
V. COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives, the following are summaries of the recorded votes of the
Committee on Small Business in its consideration of H. Res. 1298
on September 21, 2022.
MOTION TO REPORT H. RES. 1298

H. Res. 1298, as amended, was ordered transmitted without rec-
ommendation to the House of Representatives by a roll call vote of
25 yeas to 0 nays (with a quorum being present). The vote was as
follows:
Majority Members Aye No Not Voting

Ms. Velázquez, Chairwoman ................................................................................... X ................... ...................
Mr. Jared Golden ..................................................................................................... X ................... ...................
Mr. Jason Crow ....................................................................................................... X ................... ...................
Ms. Sharice Davids ................................................................................................. X ................... ...................

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21 See PPP and Bank Fraud Enforcement Harmonization Act of 2022, Pub. L. No. 117–166,
and COVID–19 EIDL Fraud Statute of Limitations Act of 2022, Pub. L. No. 117–165.

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Majority Members Aye No Not Voting

Mr. Kweisi Mfume ................................................................................................... X ................... ...................
Mr. Dean Phillips .................................................................................................... X ................... ...................
Ms. Marie Newman ................................................................................................. ................... ................... X
Ms. Carolyn Bourdeaux ........................................................................................... X ................... ...................
Mr. Troy Carter ........................................................................................................ X ................... ...................
Ms. Judy Chu .......................................................................................................... X ................... ...................
Mr. Dwight Evans ................................................................................................... X ................... ...................
Ms. Chrissy Houlahan ............................................................................................. X ................... ...................
Mr. Andy Kim .......................................................................................................... X ................... ...................
Ms. Angie Craig ...................................................................................................... X ................... ...................
Mr. Scott Peters ...................................................................................................... X ................... ...................

Minority Members Aye No Not Voting

Mr. Blaine Luetkemeyer, Ranking Member ............................................................. X ................... ...................
Mr. Roger Williams ................................................................................................. X ................... ...................
Mr. Pete Stauber ..................................................................................................... X ................... ...................
Mr. Dan Meuser ...................................................................................................... X ................... ...................
Ms. Claudia Tenney ................................................................................................ X ................... ...................
Mr. Andrew Garbarino ............................................................................................. X ................... ...................
Ms. Young Kim ........................................................................................................ X ................... ...................
Ms. Beth Van Duyne ............................................................................................... X ................... ...................
Mr. Byron Donalds .................................................................................................. X ................... ...................
Ms. Maria Salazar ................................................................................................... ................... ................... X
Mr. Scott Fitzgerald ................................................................................................ X ................... ...................
Mr. Mike Flood ........................................................................................................ ................... ................... ...................

VOTES ON AMENDMENTS

Van Duyne 1v2 was agreed to by a roll call vote of 17 yeas to
4 nays.
Majority Members Aye No Not Voting

Ms. Velázquez, Chairwoman ................................................................................... ................... X ...................
Mr. Jared Golden ..................................................................................................... ................... X ...................
Mr. Jason Crow ....................................................................................................... X ................... ...................
Ms. Sharice Davids ................................................................................................. X ................... ...................
Mr. Kweisi Mfume ................................................................................................... ................... ................... X
Mr. Dean Phillips .................................................................................................... X ................... ...................
Ms. Marie Newman ................................................................................................. ................... ................... X
Ms. Carolyn Bourdeaux ........................................................................................... X ................... ...................
Mr. Troy Carter ........................................................................................................ ................... ................... X
Ms. Judy Chu .......................................................................................................... ................... X ...................
Mr. Dwight Evans ................................................................................................... ................... X ...................
Ms. Chrissy Houlahan ............................................................................................. X ................... ...................
Mr. Andy Kim .......................................................................................................... X ................... ...................
Ms. Angie Craig ...................................................................................................... X ................... ...................
Mr. Scott Peters ...................................................................................................... X ................... ...................

Minority Members Aye No Not Voting

Mr. Blaine Luetkemeyer, Ranking Member ............................................................. X ................... ...................
Mr. Roger Williams ................................................................................................. X ................... ...................
Mr. Pete Stauber ..................................................................................................... X ................... ...................
Mr. Dan Meuser ...................................................................................................... X ................... ...................
Ms. Claudia Tenney ................................................................................................ X ................... ...................
Mr. Andrew Garbarino ............................................................................................. ................... ................... X
Ms. Young Kim ........................................................................................................ X ................... ...................
Ms. Beth Van Duyne ............................................................................................... X ................... ...................
Mr. Byron Donalds .................................................................................................. ................... ................... X
Ms. Maria Salazar ................................................................................................... ................... ................... X
Mr. Scott Fitzgerald ................................................................................................ X ................... ...................

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Mr. Mike Flood ........................................................................................................ ................... ................... ...................

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

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Majority Members Aye No Not Voting

Ms. Velázquez, Chairwoman ................................................................................... ................... X ...................
Mr. Jared Golden ..................................................................................................... X ................... ...................
Mr. Jason Crow ....................................................................................................... ................... X ...................
Ms. Sharice Davids ................................................................................................. ................... X ...................
Mr. Kweisi Mfume ................................................................................................... ................... ................... X
Mr. Dean Phillips .................................................................................................... X ................... ...................
Ms. Marie Newman ................................................................................................. ................... ................... X
Ms. Carolyn Bourdeaux ........................................................................................... ................... X ...................
Mr. Troy Carter ........................................................................................................ ................... ................... X
Ms. Judy Chu .......................................................................................................... ................... X ...................
Mr. Dwight Evans ................................................................................................... ................... X ...................
Ms. Chrissy Houlahan ............................................................................................. X ................... ...................
Mr. Andy Kim .......................................................................................................... ................... X ...................
Ms. Angie Craig ...................................................................................................... X ................... ...................
Mr. Scott Peters ...................................................................................................... ................... X ...................

Minority Members Aye No Not Voting

Mr. Blaine Luetkemeyer, Ranking Member ............................................................. X ................... ...................
Mr. Roger Williams ................................................................................................. X ................... ...................
Mr. Pete Stauber ..................................................................................................... X ................... ...................
Mr. Dan Meuser ...................................................................................................... X ................... ...................
Ms. Claudia Tenney ................................................................................................ X ................... ...................
Mr. Andrew Garbarino ............................................................................................. ................... ................... X
Ms. Young Kim ........................................................................................................ ................... ................... X
Ms. Beth Van Duyne ............................................................................................... X ................... ...................
Mr. Byron Donalds .................................................................................................. ................... ................... X
Ms. Maria Salazar ................................................................................................... ................... ................... X
Mr. Scott Fitzgerald ................................................................................................ X ................... ...................
Mr. Mike Flood ........................................................................................................ X ................... ...................

Williams 1v2 was not agreed to by a roll call vote of 11 yeas to
11 nays.
Majority Members Aye No Not Voting

Ms. Velázquez, Chairwoman ................................................................................... ................... X ...................
Mr. Jared Golden ..................................................................................................... ................... X ...................
Mr. Jason Crow ....................................................................................................... ................... X ...................
Ms. Sharice Davids ................................................................................................. ................... X ...................
Mr. Kweisi Mfume ................................................................................................... ................... ................... X
Mr. Dean Phillips .................................................................................................... ................... X ...................
Ms. Marie Newman ................................................................................................. ................... ................... X
Ms. Carolyn Bourdeaux ........................................................................................... ................... X ...................
Mr. Troy Carter ........................................................................................................ ................... ................... X
Ms. Judy Chu .......................................................................................................... ................... X ...................
Mr. Dwight Evans ................................................................................................... ................... X ...................
Ms. Chrissy Houlahan ............................................................................................. ................... X ...................
Mr. Andy Kim .......................................................................................................... ................... X ...................
Ms. Angie Craig ...................................................................................................... X ................... ...................
Mr. Scott Peters ...................................................................................................... ................... X ...................

Minority Members Aye No Not Voting

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Ms. Maria Salazar ................................................................................................... ................... ................... X
Mr. Scott Fitzgerald ................................................................................................ X ................... ...................
Mr. Mike Flood ........................................................................................................ X ................... ...................

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Luetkemeyer 1v1 was not agreed to by a roll call vote of 11 yeas
to 13 nays.
Majority Members Aye No Not Voting

Ms. Velázquez, Chairwoman ................................................................................... ................... X ...................
Mr. Jared Golden ..................................................................................................... ................... X ...................
Mr. Jason Crow ....................................................................................................... ................... X ...................
Ms. Sharice Davids ................................................................................................. ................... X ...................
Mr. Kweisi Mfume ................................................................................................... ................... X ...................
Mr. Dean Phillips .................................................................................................... ................... X ...................
Ms. Marie Newman ................................................................................................. ................... ................... X
Ms. Carolyn Bourdeaux ........................................................................................... ................... X ...................
Mr. Troy Carter ........................................................................................................ ................... X ...................
Ms. Judy Chu .......................................................................................................... ................... X ...................
Mr. Dwight Evans ................................................................................................... ................... X ...................
Ms. Chrissy Houlahan ............................................................................................. X ................... ...................
Mr. Andy Kim .......................................................................................................... ................... X ...................
Ms. Angie Craig ...................................................................................................... ................... X ...................
Mr. Scott Peters ...................................................................................................... ................... X ...................

Minority Members Aye No Not Voting

Mr. Blaine Luetkemeyer, Ranking Member ............................................................. X ................... ...................
Mr. Roger Williams ................................................................................................. X ................... ...................
Mr. Pete Stauber ..................................................................................................... X ................... ...................
Mr. Dan Meuser ...................................................................................................... X ................... ...................
Ms. Claudia Tenney ................................................................................................ X ................... ...................
Mr. Andrew Garbarino ............................................................................................. X ................... ...................
Ms. Young Kim ........................................................................................................ X ................... ...................
Ms. Beth Van Duyne ............................................................................................... X ................... ...................
Mr. Byron Donalds .................................................................................................. ................... ................... X
Ms. Maria Salazar ................................................................................................... ................... ................... X
Mr. Scott Fitzgerald ................................................................................................ X ................... ...................
Mr. Mike Flood ........................................................................................................ X ................... ...................

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

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

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

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10

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

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a) of the Congressional Budget
Act of 1974, the Committee provides the following opinion and esti-
mate with respect to new budget authority, entitlement authority,
and tax expenditures. While the Committee has not received an es-
timate of new budget authority contained in the cost estimate pre-
pared by the Director of the Congressional Budget Office pursuant
to section 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.
The resolution does not provide new budget authority, new
spending authority, new credit authority, or an increase or de-
crease in revenues or tax expenditures and a statement under
clause 3(c)(2) of rule XIII of the Rules of the House of Representa-
tives and section 308(a)(1) of the Congressional Budget Act of 1974
is not required.
IX. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.
Res. 1298 are incorporated into the descriptive portions of this re-
port.
X. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H. Res. 1298 is known to be du-
plicative of another Federal program, including any program that
was included in a report to Congress pursuant to section 21 of Pub-
lic Law 111–139 or the most recent Catalog of Federal Domestic
Assistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED
TARIFF BENEFITS

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

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the Rules of the House of Representatives.

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XIII. FEDERAL MANDATES STATEMENT

An estimate of Federal mandates prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the Un-
funded Mandates Reform Act was not made available to the Com-
mittee in time for the filing of this report. The Chairwoman of the
Committee shall cause such estimate to be printed in the Congres-
sional Record upon its receipt by the Committee.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

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

The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, this resolution makes no changes to ex-
isting law.
XVII. SUPPLEMENTAL, ADDITIONAL, DISSENTING, OR MINORITY VIEWS

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

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MINORITY VIEWS
Pursuant to clause 2(l) of rule XI of the Rules of the House of
Representatives, I am writing to advise of the additional views of
the Committee on Small Business on House Resolution 1298. These
views are in addition to any views submitted by the Committee’s
majority members. Disappointingly, the Committee majority mem-
bers opted to report this resolution to the House without rec-
ommendation. Consequently, the minority disagrees with the ma-
jority’s neutral position on this resolution. This objection is dis-
cussed in greater detail below.
Under clause 1(q) of rule 10 of the Rules of the United States
House of Representatives, the Committee on Small Business has
legislative jurisdiction over the United States Small Business Ad-
ministration (SBA), including financial assistance, regulatory mat-
ters, paperwork reduction, and the participation of small busi-
nesses in federal government procurement contracts.22 Addition-
ally, the Committee has continuing jurisdiction to examine any
issues that impact America’s small businesses. This document, ac-
cordingly, focuses on House Resolution 1298, a resolution of inquiry
directing the Secretary of the Treasury to transmit certain docu-
ments to the House of Representatives relating to the role of the
Department of Treasury in the Paycheck Protection Program of the
Small Business Administration.
I. INTRODUCTION

Crafted by Congress, in consultation with the Department of the
Treasury and the Small Business Administration (SBA), the Pay-
check Protection Program (PPP) served as an immediate source of
relief for small businesses in the early days of the pandemic.23 As
outlined in the CARES Act, the PPP was administered and imple-
mented by the SBA and through the critical assistance of the De-
partment of the Treasury.24 Specifically, the Department of the
Treasury, under Section 1109 of the CARES Act, was required to
onboard new private sector lenders to deliver PPP loans to small
businesses and other eligible entities.25 The two agencies worked
steadfastly together during the early days of the pandemic, and
throughout 2020, to ensure dollars reached small businesses and
their employees swiftly. Likewise, both agency heads testified be-
fore Congress in 2020 to provide important information on this pro-
gram.26
22 Cheryl L. Johnson, Rules of the House of Representatives, 117th Cong. at Rule 10 clause
1(q) (February 2, 2021).
23 Pub. L. No. 116–136 (2020).
24 Id.
25 Id at § 1109.
26 Oversight of the Small Business Administration and Department of Treasury Pandemic Pro-

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grams Before the House Committee on Small Business, 116th Cong. (2020).
(12)

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In December 2020, Congress passed the Consolidated Appropria-
tions Act of 2021.27 The Act, which provided additional funding to
the PPP program, included a testimony requirement for both the
SBA Administrator and the Secretary of the Treasury.28 Recog-
nizing the role both agencies would play in the implementation of
PPP, the Act required each official to testify before the House Com-
mittee on Small Business not less than 120 days after enactment
and not less than twice each year thereafter. As of September 23,
2022, 515 days since the first testimony deadline, Treasury Sec-
retary Yellen has yet to testify before the Committee.
Committee minority members have requested Secretary Yellen’s
testimony on numerous occasions over the past 515 days. These re-
quests include a May 26, 2021 letter signed by all Committee mi-
nority members reminding the Secretary of her legal requirement
to testify and requesting her availability. A July 6, 2021 letter
signed by all Committee minority members at the conclusion of the
PPP processing window reminding the Secretary of the Treasury’s
role in the program and once again requesting her testimony. A
July 28, 2021 letter signed by the Ranking Members of multiple
House Committees expressing concern at the Secretary’s failure to
appear before multiple committees and once again requesting her
testimony. A March 1, 2022 letter signed by the Ranking Member
of the House Committee on Small Business expressing concern as
the one-year anniversary of the Secretary’s failure to testify ap-
proached and once again requesting her testimony. Finally, a June
13, 2022 letter from the Ranking Member of the House Committee
on Small Business noting the Secretary’s ability to appear before
multiple media outlets while continuing to avoid her legal require-
ment to testify before this Committee. Treasury Secretary Yellen
never responded to Committee minority members on any of these
occasions. To date, Treasury Secretary Yellen has never provided
any type of written response to Committee minority members, ex-
cept for directed responses from the Assistant Secretary for Legis-
lative Affairs at the Treasury Department.
Despite Treasury’s role in PPP, this Committee has received al-
most no information from Treasury. With direct jurisdiction over
such a critical pandemic relief program, Secretary Yellen’s obstruc-
tion has placed this Committee at a legislative disadvantage and
threatens Congress’ legitimate oversight responsibilities. Ranking
Member Luetkemeyer’s Resolution of Inquiry, reported unani-
mously by Republicans and Democrats on the Committee on Small
Business, intends to correct just that.
II. THE RESOLUTION OF INQUIRY

The resolution directs Treasury Secretary Yellen to provide: (1)
all communications between the Department of the Treasury and
the SBA relating to the PPP; (2) all documents and communica-
tions relating to the obligation of the Treasury Secretary to testify
before the Small Business Committee of the House of Representa-
tives as required by section 321(b) of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 639b(b));

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27 Pub. L. No. 116–260, 134 Stat. 1182 (2020).
28 Id.

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and (3) all documents and communications relating to the role of
the Treasury Secretary on administering the PPP.
The exchange of documents and communications between Treas-
ury and the SBA is of critical value to this Committee. As the two
agencies work in tandem through the loan forgiveness period of
PPP, this Committee must understand the role each agency played,
and continues to play, in the program. With rampant pandemic
fraud seemingly around every corner, a legislative solution may be
in order. Unfortunately, without Treasury’s cooperation, the Com-
mittee stands at a legislative disadvantage.
Furthermore, as the Secretary continues to thumb her nose at
her legal requirement to testify before this Committee, we remain
concerned about the precedent this sets regarding Congress’ con-
stitutional authority to conduct oversight over the executive. With
the legality of the Secretary’s actions in question, we believe the
Secretary must have sought counsel or guidance from within the
Department. As such, this Committee requires the documentation
and rationale any and all government employees have provided
Secretary Yellen that would justify her refusal to abide by her legal
requirement to testify.
House Resolution 1298, as amended, was reported to the House
without recommendation with 25 votes in favor and 0 votes
against. Ms. Salazar was not recorded. Had she been present, Ms.
Salazar would have voted in favor of the resolution.
III. AMENDMENTS TO THE RESOLUTION OF INQUIRY

Van Duyne Amendment 1v2, offered by Representative Beth Van
Duyne of Texas, adds additional language under the resolution of
inquiry requesting the Treasury Secretary to provide all documents
and communications relating to the total amount of funding recov-
ered from fraudulently obtained COVID–19 relief. This amendment
was agreed to with 17 ayes and 4 nos.
On the Van Duyne Amendment 1v2 vote, Mr. Garbarino, Mr.
Donalds, and Ms. Salazar were not recorded. Had these members
been present, they would have voted aye.
Meuser Amendment 1v2, offered by Representative Dan Meuser
of Pennsylvania, adds additional language under the ROI request-
ing the Treasury Secretary to provide all documents and commu-
nications relating to any of Treasury’s actions to assist small busi-
nesses with addressing the impact of federal regulations. Addition-
ally, the amendment requests all information relating to any guid-
ance the SBA offered to the Treasury Department in targeting reg-
ulatory assistance to small businesses. This amendment was
agreed to with 12 ayes and 8 nos.
On the Meuser Amendment 1v2 vote, Ms. Kim, Mr. Garbarino,
Mr. Donalds, and Ms. Salazar were not recorded. Had these mem-
bers been present, they would have voted aye.
Williams Amendment 1v2, offered by Representative Roger Wil-
liams of Texas, adds additional language under the ROI requesting
the Treasury Secretary to provide all documents and communica-
tions relating to any of Treasury’s actions to assist small busi-
nesses with rising inflation, ongoing labor shortages, and persistent

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supply chain issues. Additionally, the amendment requests all in-
formation relating to any guidance the SBA offered to the Treasury

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Department in targeting economic assistance to small businesses.
This amendment was not agreed to with 11 ayes and 11 nos.
On the Williams Amendment 1v2 vote, Mr. Donalds and Ms.
Salazar were not recorded. Had these members been present, they
would have voted aye.
Luetkemeyer Amendment 1v1, offered by Ranking Member
Luetkemeyer of Missouri, adds additional language under the ROI
requesting the Treasury Secretary to provide all documents and
communications relating to any of Treasury’s actions to assist vet-
eran owned small businesses. Additionally, the amendment re-
quests all information relating to any guidance the SBA offered to
the Treasury Department in targeting economic assistance to vet-
eran owned small businesses. This amendment was not agreed to
with 11 ayes and 13 nos.
On the Luetkemeyer Amendment 1v1 vote, Mr. Donalds and Ms.
Salazar were not recorded. Had these members been present, they
would have voted aye.
IV. CONTINUING OVERSIGHT CHALLENGES

Despite the Committee taking up, and reporting to the House,
this critical resolution directed at Treasury Secretary Yellen, cur-
rent House rules and precedent have hamstrung this Committee
from exercising its oversight authority to the full extent of its juris-
diction. A Resolution of Inquiry is a method used by the House of
Representatives to obtain information from the executive branch. If
properly drafted, in accordance with House rules, such resolutions
are given special parliamentary status. This status allows the in-
troducing member the ability to require action on this oversight re-
quest. House rules describe a properly directed Resolution of In-
quiry as one being directed to the President or cabinet level sec-
retary. Clause 7 of rule XIII refers to ‘‘the head of an executive de-
partment.’’ That term does not extend beyond Cabinet officers to
subordinate officials. Thus, a Resolution of Inquiry directed to the
Administrator of the SBA would not be privileged for consideration.
The Committee on Small Business has direct legislative jurisdic-
tion over the United States Small Business Administration. Legis-
lative solutions can be, and often are, driven by oversight investiga-
tions. As the SBA has taken on such an outsized role in the na-
tion’s economic recovery, its critical this Committee examine the
agency’s ability to manage its growing workload. Unfortunately,
current House rules prevent this Committee from exercising the
same oversight tools afforded to other House committees tasked
with direct oversight over an agency because the Administrator is
not recognized as a cabinet level official. President Biden’s current
cabinet includes the SBA Administrator as a cabinet level official.
Based on the role of the SBA in our nation’s economic recovery,
along with the cabinet level rank currently afforded to the Admin-
istrator, House rules should be amended to officially recognize the
SBA Administrator as a cabinet level officer.
BLAINE LUETKEMEYER,
Ranking Member, House Committee on Small Business.

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