Markup of Various Measures (House Small Business Committee hearing, February 11, 2026)
Summary
Transcript of the February 11, 2026 House Small Business Committee markup, Small Business Committee Document Number 119-030, of three bills: H.R. 7401, the Small Business Lending Fraud Prevention Act, H.R. 7396, the Native American Entrepreneurial Opportunity Act, and H.R. 7412, the Put America on Commission Act of 2026. Chairman Roger Williams presided from 9:04 a.m., and Ranking Member Nydia Velázquez gave an opening statement. Each bill was ordered reported by the yeas and nays, 24-0. The appendix adds a Defense Credit Union Council letter and electronic vote results.
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
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“Markup of Various Measures (House Small Business Committee hearing, February 11, 2026).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/markup-of-various-measures-house-small-business-committee-hearing-febr-0e2ad85d04/
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MARKUP OF VARIOUS MEASURES
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
SECOND SESSION
HEARING HELD
FEBRUARY 11, 2026
Small Business Committee Document Number 119–030
Available via the GPO Website: www.govinfo.gov
U.S. GOVERNMENT PUBLISHING OFFICE
62–952 WASHINGTON : 2026
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HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
JAKE ELLZEY, Texas
MARK ALFORD, Missouri
NICK LALOTA, New York
BRAD FINSTAD, Minnesota
TONY WIED, Wisconsin
ROB BRESNAHAN, Pennsylvania
BRIAN JACK, Georgia
TROY DOWNING, Montana
KIMBERLYN KING-HINDS, Northern Marina Islands
DEREK SCHMIDT, Kansas
JIMMY PATRONIS, Florida
NYDIA VELÁZQUEZ, New York, Ranking Member
MORGAN MCGARVEY, Kentucky
HILLARY SCHOLTEN, Michigan
LAMONICA MCIVER, New Jersey
GIL CISNEROS, California
KELLY MORRISON, Minnesota
GEORGE LATIMER, New York
DEREK TRAN, California
LATEEFAH SIMON, California
JOHNNY OLSZEWSKI, Maryland
MAGGIE GOODLANDER, New Hampshire
LAUREN HOLMES, Majority Staff Director
MELISSA JUNG, Minority Staff Director
(II)
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CONTENTS
OPENING STATEMENTS
Page
Hon. Roger Williams ................................................................................................ 1
Hon. Nydia Velázquez ............................................................................................. 2
APPENDIX
Additional Material for the Record:
Text of Legislation:
H.R. 7401 - Small Business Lending Fraud Prevention Act ......................... 13
H.R. 7396 - Native American Entrepreneurial Opportunity Act .................. 16
H.R. 7412 - Put America on Commission Act of 2026 ................................... 21
Support Documents:
Defense Credit Union Council (DCUC) .......................................................... 39
E-Vote Results .................................................................................................. 42
Votes:
H.R. 7401 - Small Business Lending Fraud Prevention Act Ordered to
be reported by the Yeas and Nays: 24-0 ..................................................... 45
H.R. 7396 - Native American Entrepreneurial Opportunity Act Ordered
to be reported by the Yeas and Nays: 24-0 ................................................. 46
H.R. 7412 - Put America on Commission Act of 2026 Ordered to be
reported by the Yeas and Nays: 24-0 .......................................................... 47
(III)
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MARKUP OF VARIOUS MEASURES
WEDNESDAY, FEBRUARY 11, 2026
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The Committee met, pursuant to call, at 9:04 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams [chair-
man of the Committee] presiding.
Present: Representatives Williams, Stauber, Meuser, Van Duyne,
Ellzey, Alford, LaLota, Finstad, Wied, Bresnahan, Downing, King-
Hinds, Patronis, Velázquez, McGarvey, Scholten, McIver, Cisneros,
Morrison, Latimer, Tran, Simon, Olszewski, and Goodlander.
Chairman WILLIAMS. Before we get started with the markup,
I would like to recognize Congressman Ellzey from the Gray State
of Texas to lead us in the Pledge of Allegiance and a short prayer.
All right. The committee will now come to order.
A quorum is present. And without objection, the Chair is author-
ized to declare a recess of the committee at any time. As required
by the House rules, a copy of the legislative measures have been
made available to Members and the public at least 24 hours in ad-
vance.
Without objection, the committee will vote electronically in ac-
cordance with committee rules and regulations developed by the
House Committees on Rules and Administration. I now recognize
myself for opening remarks.
Today, we will mark up three important bipartisan bills that
support efforts to combat waste, fraud, and abuse. These bills re-
flect our continued commitment to ensure transparency and ac-
countability within the SBA and support efforts to root out fraud
in the SBA’s COVID-era lending programs. The bills will establish
an office to help recover taxpayer dollars, prevent conflicts of inter-
est in loan processing, and codify the Office of Native American Af-
fairs. These bills will support the SBA’s ability to serve America’s
small businesses and taxpayers alike.
As Chairman, I am proud of the work underway in this com-
mittee, particularly our efforts to address systematic failures and
support existing SBA programs. The committee has demonstrated
our commitment to proactive, responsible oversight and account-
ability, and for that, I say thank you.
First, we will consider a bill that targets and prevents potential
ethics violations in loan processing. The bill will enhance account-
ability and oversight of the SBA loan process by requiring conflict
of interest certification. Next, we will consider a bill to codify the
SBA’s Office of Native American Affairs, an office which has been
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appropriated funds but not yet to be codified. Finally, we will con-
sider my bill to establish the Office of Whistleblower Rewards. The
office will support the SBA OIG in its efforts to combat fraud. The
bill will increase efficiency to fraud recovery by incentivizing public
participation.
With this additional resource, SBA is strategically positioned to
stop bad actors and recover funds. Correcting and mitigating sys-
tematic failures is inherently complex and requires a strong bipar-
tisan effort, and I am proud of the collaborative effort that has re-
sulted in today’s markup. These three bills lay the foundation for
a better tomorrow.
I look forward to continuing to work with my colleagues to make
strides in addressing waste, fraud, and abuse by improving inter-
nal mechanisms and processes. The SBA is better positioned to
serve American small businesses.
With that, I yield to my friend and the distinguished Ranking
Member from New York, Ms. Velázquez, for her opening remarks.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman, for convening this
markup today. I plan to lend my support to the three bipartisan
bills under consideration.
Let me begin by expressing my strong support for H.R. 7396, leg-
islation to codify the Office of Native American Affairs. It is impor-
tant for our committee to remain focused on its mission, reviewing,
evaluating, and improving SBA’s programs so they work for our na-
tion’s 36 million small businesses. I look forward to future markups
that will deliver meaningful improvements to SBA core programs.
The other two bills under consideration will give SBA additional
tools to combat fraud. One will put important processes in place to
help prevent fraud, and the other will provide a mechanism for
SBA to recover fraudulent pandemic monies. I am pleased to lend
my support to these two bills.
With that said, and I have mentioned this before, SBA needs to
be more responsive to the committee. The administration—the ad-
ministrator has egregiously ignored Congressional oversight letters
and requests for meetings, obstructing our ability to conduct mean-
ingful oversight. I hope you will support efforts to hold the agency
accountable.
Thank you, Mr. Williams, and I look forward to a productive
markup. I yield back.
Chairman WILLIAMS. The gentlelady yields back. Does any
other Member seek recognition for the purpose of making an open-
ing statement?
Seeing none, we will now move to consideration of the first bill.
The committee now moves to consideration of H.R. 7401, the
Small Business Lending Fraud Prevention Act, introduced by Rev-
erend Meuser and Goodlander.
The Clerk will report the bill.
H.R. 7401
The CLERK. H.R. 7401, a bill to require employees of the small
business——
Chairman WILLIAMS. Without objection, H.R. 7401 is consid-
ered as read and open for amendment.
I now recognize the bill’s sponsor, Representative Meuser from
the great state of Pennsylvania, for his remarks.
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Mr. MEUSER. Thank you, Mr. Chairman. Our bipartisan legisla-
tion, H.R. 7401, the Small Business Lending Fraud Prevention Act,
will strengthen the SBA’s conflict of interest rule, adding an impor-
tant safeguard within the loan process. The bill requires SBA em-
ployees involved in the origination, review, or approval of its loans
to certify that they have no conflicts of interest in the transaction.
It also requires employees to promptly disclose and recuse them-
selves if a conflict arises and to acknowledge their obligations
under federal ethics laws.
Though the 7(a) program operates at zero subsidy cost to the tax-
payer, there have been instances of SBA employees processing
loans to family members or others barred under federal conflict of
interest rules, and have increased in recent years. Just last Au-
gust, Rena Barrett, a former SBA loan officer, pled guilty to sub-
mitting and approving fraudulent COVID-19 EIDL applications,
abusing her position to seek more than $550,000 in pandemic relief
funds for herself and family. In addition, Attallah Williams, an-
other former SBA loan officer, was charged in January for approv-
ing fraudulently submitted EIDL applications in exchange for a
share of the proceeds. Congress must root out waste, abuse, and
fraud, especially when it is perpetrated by government employees.
I would like to thank Congresswoman Goodlander for co-leading
this legislation. I would also like to thank Chairman Williams for
bringing this bill forward for consideration today, and I certainly
encourage my colleagues to support this legislation.
Thank you, Mr. Chairman. I yield back.
Chairman WILLIAMS. The gentleman yields back, and I now
recognize the bill’s co-sponsor, Representative Goodlander from the
great state of New Hampshire, for her remarks.
Ms. GOODLANDER. Thank you, Mr. Chairman. Small busi-
nesses aren’t just part of our economy. They are the lifeblood of the
economy of my state and our nation, and the loans administered
by the Small Business Administration are the lifeblood for so many
small businesses in every corner of our country.
Conflicts of interest, especially conflicts of interest in people serv-
ing in positions of public trust, they are a cancer that undermines
public trust, that leads to abuses of taxpayer dollars. And ulti-
mately, it is our small businesses and entrepreneurs, good people,
hardworking people who are playing by the rules, who pay the
price for these conflicts of interest. So that is why I am really
proud to be working alongside Congressman Meuser with this com-
mon sense, straightforward, bipartisan bill that is going to allow us
to crack down on conflicts of interest on the front end so that red
flags are raised before problems arise and so that we don’t see any
more unnecessary red tape or costs for our small businesses in the
administration of Small Business Administration loans.
This is really about strengthening the prevention, detection, and
enforcement of the most basic principles of good governance and
our democracy. They have always defined us as Americans, and
that is why I am proud that we are coming together as Americans
to pass this straightforward, practical, bipartisan bill.
So with that, Mr. Chairman, I yield back.
Chairman WILLIAMS. The gentlelady yields back.
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Are there any other Members who wish to be recognized for a
statement on this bill?
I now recognize the Ranking Member to speak on the bill.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman. I want to express
my support for H.R. 7401, the Small Business Lending Fraud Pre-
vention Act. I applaud Mr. Meuser and Ms. Goodlander for their
leadership on this issue.
Let me begin by saying this committee has played an integral
role in conducting oversight of the pandemic relief programs. Ap-
proximately $1.2 trillion dollars of economic aid was disbursed
through the SBA pandemic relief programs over the course of the
pandemic, providing economic relief to small businesses all over the
country. Unfortunately, bad actors took advantage of the programs,
and it has become clear we need to work together to recover fraud-
ulent dollars.
The previous administration took strong steps to root out fraud
and put internal controls in place to prevent it, and the OIG, which
has a team of auditors, investigators, attorneys, and state-of-the-
art data analytics technology, has been working diligently to un-
cover fraudulent schemes. And because of their work, an SBA loan
officer recently pled guilty to making a false statement in connec-
tion to applications for more than $550,000 in fraudulent COVID-
19 pandemic loans to herself and family members.
While I firmly believe the single most important action we can
take to combat fraud is to fully fund the IG’s budget request, I sup-
port this legislation.
The bottom line is this. The camp (phonetic) process worked. The
bad actor at SBA was identified, investigated, and prosecuted. But
moving forward, requiring SBA employees to certify there is no
conflict of interest before approving a loan will add an extra layer
of security and help deter fraud.
I urge my colleagues to support the bill. I yield back.
Chairman WILLIAMS. Gentlelady yields back.
I now recognize myself for remarks.
Last year, the SBA uncovered a disturbing case of fraud. In 2021,
a former SBA loan officer used her authority to secure a $170,000
Economic Injury Disaster Loan for one of her family members, and
the loan officer submitted a false statement to the SBA as part of
a loan application. When it was initially denied, she approved it
herself. Before she was caught, the loan officer tried to approve
over $500,000 in loans to herself and her relatives while still work-
ing at the SBA. Fortunately, in this case, the fraudster was caught.
However, it was critical to take serious steps to avoid such cases
in the future, and it should not be possible for fraud like this to
occur again.
H.R. 7401, the Small Business Lending Fraud Prevention Act,
moves us in the right direction. This bill requires SBA employees
involved in the loan process to certify there are no ties to the loan
applicant or recipient for any of the loans they are responsible for
processing. The bill requires any employee who has a conflict of in-
terest to inform their supervisor and recuse themselves from the
loan review and approval process. There are necessary steps to fu-
ture fraud at the SBA, and it will provide a clear standard against
which future fraudsters can be held accountable.
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I urge my colleagues to vote yes on H.R. 7401, and I yield back.
Does anyone wish to offer an amendment?
Seeing none, the question now occurs in order in H.R. 7401, re-
ported favorably to the House. All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it. H.R. 7401 is agreed
to.
Mr. MEUSER. Mr. Chairman, I would like to request a recorded
vote.
Chairman WILLIAMS. A recorded vote has been requested, and
a roll call vote is ordered. Pursuant to Committee Rule 13 and
House Rule 11, further proceedings on the bill are postponed.
The Committee now moves to consideration of H.R. 7396, the Na-
tive American Entrepreneurial Opportunity Act, introduced by
Representative Davids, Ellzey, Morrison, and Crane.
The Clerk will report the bill.
H.R. 7396
The CLERK. H.R. 7396, a bill to establish the Office of Native
American——
Chairman WILLIAMS. Without objection, H.R. 7396 is consid-
ered as read and open for amendment.
I now recognize Representative Morrison from the great state of
Minnesota for a statement on the bill.
Ms. MORRISON. Thank you, Mr. Chairman, and thanks to my
colleagues, Representatives Davids, Ellzey, and Crane, for joining
me in introducing this important bipartisan legislation.
Native-owned businesses employ over 300,000 people across the
country and contribute over $33 billion to the U.S. economy every
year. In tribal communities, they are often the backbone of the
local economy. That is why it is critical that there is continuity in
the Small Business Administration’s engagement with Native
American entrepreneurs.
Codifying the Office of Native American Affairs and establishing
an assistant administrator role to oversee its operations will create
better government-to-government working relationships with tribes
and Native Hawaiian organizations and better address the entre-
preneurial, capital, and contracting needs of tribes and Native busi-
nesses.
There are nearly 4,000 Native-owned businesses in Minnesota,
ranging from independent bookstores to construction companies to
local restaurants. I look forward to seeing the Small Business Ad-
ministration continue to work with Native entrepreneurs in Min-
nesota and across the country to ensure these businesses have the
resources they need to grow and succeed.
Thank you, Mr. Chair. I yield back.
Chairman WILLIAMS. The gentlelady yields back. Are there any
other Members who wish to be recognized for a statement on this
bill?
Okay, seeing none, I would like to recognize the Ranking Mem-
ber to speak on the bill.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman. I strongly support
the Native American Entrepreneurial Opportunity Act.
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Let me begin by commending Ms. Davids, Dr. Morrison, Mr.
Ellzey, and Mr. Crane for their and bipartisanship commitment to
codifying the Office of Native American Affairs at SBA.
Small businesses on tribal reservations oftentimes face a mix of
challenges, ranging from lack of access to capital to inadequate
business training. SBA’s office has proved to be a valuable resource
to Native American Indians, Alaskan Natives, and Native Hawai-
ians, supporting approximately 2,000 small businesses every day.
Codifying the office will ensure that tribal small businesses have
access to SBA’s full range of business development tools, regardless
of the administration.
Importantly, the legislation requires that the assistant adminis-
trator report directly to the administrator, making sure that the
voices of the tribal communities will be heard at SBA. Native
American-owned businesses are economic engines, generating $86
billion in sales, shipments, and revenues every year, and employing
nearly 364,000 people in their communities. This bill will go a long
way to increase access to federal programs and services and pro-
mote economic development.
I would also like to thank Chairman Williams for adding this bill
to the markup today.
With that, I yield back.
Chairman WILLIAMS. The gentlelady yields back.
I now recognize myself to speak in support of this legislation.
H.R. 7396, the Native American Entrepreneurial Opportunity
Act, established the Office of Native American Affairs within the
Small Business Administration. Economic development programs
aim to help small businesses start, grow, and compete in global
markets by providing qualifying training, counseling, and access to
resources. The SBA’s Office of Native American Affairs has been
providing these services and tribal consultations for many years.
However, the office has yet to be codified into law. This legisla-
tion will codify this office and provide Congress with an annual re-
port that includes the number of individuals served, consultations
provided, and the trainings held by the office. This report will im-
prove transparency and increase oversight of the office.
I urge my colleagues to vote yes on H.R. 7396, and I yield back.
Does anyone wish to offer an amendment?
Seeing none, the question now occurs on ordering H.R. 7396 re-
ported in favor to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 7396 is agreed to.
Mr. MEUSER. Mr. Chairman?
Chairman WILLIAMS. For what purpose does the gentleman
from Pennsylvania seek recognition?
Mr. MEUSER. I would like to request a recorded vote.
Chairman WILLIAMS. So moved. The recorded vote has been re-
quested. A roll call vote is ordered.
Persuaded to Committee Rule 13 and House Rule 11, further pro-
ceedings on the bill are postponed.
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Committee now moves to consideration of H.R. 7412, the Put
America on Commission Act of 2026. Introduced by myself and
Representative Olszewski from the great state of Maryland.
The Clerk will report the bill.
H.R. 7412
The CLERK. H.R.7412, a bill to amend the small——
Chairman WILLIAMS. Without objection, H.R. 7412 is consid-
ered as read and open for amendment.
I now recognize myself to speak in support of this legislation.
H.R. 7412, the Put America on Commission Act of 2026, will
maximize the SBA’s efforts to recover fraudulent pandemic loan
funds by incentivizing everyday Americans to submit credible infor-
mation on fraudulent loans in exchange for a commission. This bill
will establish the Office of Whistleblower Rewards within the SBA
to receive whistleblower tips from the public and forward credible
evidence to the Office of Inspector General. If the information re-
ceived from a whistleblower results in a final conviction, the office
will disperse a monetary award to the whistleblower.
The SBA’s Office of Inspector General estimates that over $200
billion in taxpayer dollars were given out to bad actors through the
SBA’s PPP, EIDL, and other COVID-19 relief programs. This ac-
counts for nearly 20 percent of all pandemic funding or lending,
and this legislation opens up a new avenue for tracking down the
fraudsters. Whistleblowers can serve as a key tool in recovering the
unprecedented amount of fraud and ensuring fraudsters are
brought to justice.
The newly established Office of Whistleblower Rewards would be
led by one staff member who coordinates tips with the SBA Inspec-
tor General for investigation. Notably, the office’s operations and
whistleblower awards are fully funded by recovered fraudulent loan
accounts, which are deposited into the whistleblower award fund.
Under the bill, the SBA may also seek a separate civil monetary
penalty against convicted fraudsters, and the income from the pen-
alties will be deposited into the whistleblower award fund. In the
private sector of a commission’s work, the bill utilizes the common
practice to help bring more fraudsters to justice. No one should be
able to defraud the American taxpayers without consequence.
I greatly appreciate the work that the Office of the Inspector
General has done to date to uncover the extent of the fraud. This
bill will help the Office of the Inspector General obtain the infor-
mation needed to catch fraudsters and do right by American busi-
nesses.
I am proud to introduce legislation to help introduce fraudsters
accountable and recover billions of dollars stolen from American
taxpayers. Even the infamous CBO determined the same legisla-
tion from last Congress would reduce the deficit by $108 million
over 10 years.
So I urge my colleagues to vote yes on H.R. 7412, and I yield
back.
I now recognize the bill’s co-sponsor, Representative Olszewski,
from the great state of Maryland, for a statement on the bill.
Mr. OLSZEWSKI. Thank you very much, Mr. Chairman. I do
want to begin by thanking you, Chairman Williams, for your part-
nership and your leadership on this important effort. Likewise, I
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want to echo your sentiments and lift up the important work of the
Inspector General. I am very proud to lead this bipartisan bill be-
cause I believe that we can and should always work harder to en-
sure tax dollars are being spent as intended and as efficiently as
possible.
Before coming to Congress, I had the privilege of serving in both
state and local elected office, including 6 years as Baltimore County
Executive. In that role, I authored our county’s first comprehensive
and enterprise-wide efficiency review. In that work, we came up
with over 150 recommendations with the potential savings of $771
million for taxpayers, many of which my team and I implemented
and are still being used today to save residents millions annually.
It is the kind of work government should be leading all the time,
and it is why I am proud to join the Chairman to lead this innova-
tive bipartisan legislation that would incentivize Americans to re-
port the potential misuse of federal dollars.
My work in Baltimore County made sure we were being efficient
in our use of taxpayer funding. This bill aims to save tax dollars
by holding people and organizations who commit fraud accountable.
During the COVID-19 pandemic, emergency funds were rushed
out to keep workers employed, small businesses afloat, and families
stable. I was proud to help administer many of these programs as
county executive. That money was meant to be a lifeline, and for
many, it was. But when individuals abused those programs for per-
sonal gain, they didn’t just break the law and steal from the fed-
eral government. They stole from others who were already under
tremendous strain.
An office dedicated to reporting COVID-19 fraud protects the in-
tegrity of all public programs, and it sends a clear message: help
is there for those who need it, but exploitation will not be tolerated.
This bill will hold criminals accountable and offer multiple path-
ways for patriotic Americans to report potential fraud and abuse.
In turn, it will help us recover funds and restore public trust.
I urge a yes vote from my colleagues. Thank you very much, and
I yield back.
Chairman WILLIAMS. Gentleman yields back.
I now recognize Representative Alford from the great state of
Missouri for a statement on the bill.
Mr. ALFORD. Thank you, Chairman Williams and Ranking
Member Velázquez, for bringing forward this important legislation.
You know, relief funds were meant to help small businesses sur-
vive an unprecedented crisis, not to line the pockets of criminals.
Every dollar stolen is a dollar taken from an honest entrepreneur
who played by the rules and needed that support to keep their
doors open and their employees on payroll.
Unfortunately, we don’t have to look too far from my district. In
Kansas City, Missouri, three men were recently indicted for alleg-
edly fraudulently obtaining more than $447,000 in the Paycheck
Protection Program Loans using false payroll records. Authorities
allege that those loans were later forgiven, even though the funds
were not used for authorized purposes. Folks, that is half a million
dollars. It is nearly half a million dollars diverted away from the
small businesses these programs were created to help. Cases like
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this undermine public trust and disadvantage the very people that
these programs were designed to support.
And that is just one example. Nationwide, hundreds of billions
of dollars in suspected pandemic loan fraud remains outstanding.
The American people deserve confidence that Congress is doing ev-
erything possible to recover those funds and hold bad actors ac-
countable.
I am encouraged that under Administrator Kelly Loeffler, the
SBA is taking this issue seriously. We are seeing a renewed focus
on oversight, enforcement, and restoring integrity to these pro-
grams so that taxpayer dollars are protected. And that is why I
fully support Chairman Williams’ Put America on Commission Act.
This bill establishes an Office of Whistleblowers Rewards with the
Small Business Administration to incentivize individuals to come
forward with credible information about pandemic loan fraud.
Pandemic relief programs like PPP and EIDL were lifelines for
millions of small businesses. And if we fail to pursue fraud aggres-
sively, we risk undermining confidence in future emergency pro-
grams when Americans need them most. I urge my colleagues to
support this common-sense, bipartisan bill so that we can continue
recovering stolen funds and send a clear message to the American
people that if you defraud the American taxpayer, you will be held
accountable.
And with that, I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Representative Stauber from the great state of
Minnesota for a statement on the bill.
Mr. STAUBER. Thank you, Mr. Chairman. I want to start by
being very clear. What happened during the pandemic with federal
relief dollars, and what has happened in states like my home state
of Minnesota, was not just unfortunate. It was a gross failure of
oversight and a betrayal of the American taxpayer.
In my home state, we have uncovered billions of dollars in fraud,
federal dollars provided by the good people and law-abiding tax-
payers in my great state of Minnesota and across this great nation.
They were taken by organized fraud rings. This wasn’t just small
oversights or mix-ups. This was a systemic abuse, abuse made pos-
sible by our failing governor and his administration in my state,
and by other programs with weak controls and no oversight.
We have seen case after case where taxpayer dollars meant to
help struggling families and small businesses instead lie in the
pockets of criminals. And once the money was gone, the govern-
ment was left without the tools or information needed to recover
it. This is unacceptable. Every dollar stolen is a dollar taken away
from a legitimate mom-and-pop shop trying to stay open or a fam-
ily just trying to put food on the table.
It is also deeply offensive to the millions of Americans who fol-
lowed the rules while fraudsters got rich. That is why H.R. 7412,
the Put America on Commission Act, is so critical. This bill recog-
nizes a simple truth. The government cannot catch fraud alone.
Often, the people who know fraud is happening are the insiders,
neighbors, or employees who see it firsthand. But too often, they
have no incentive or even a clearer way to come forward.
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By creating an Office of Whistleblower Rewards within the SBA,
this legislation puts real teeth behind fraud enforcement. It
incentivizes credible tips, helps uncover hidden fraud schemes, and
provides the SBA with the information it needs to recover stolen
taxpayer dollars. This is about accountability. It is about deter-
rence. And it is about sending a message. If you stole from the
American people, you will be found, and you will be held respon-
sible.
I commend Chairman Williams and Congressman Olszewski for
bringing forward this bipartisan, common-sense solution. If we are
serious about stopping fraud, protecting honest businesses, and re-
storing trust in federal programs, this bill is exactly the kind of ac-
tion Congress should be taking. I strongly urge H.R. 7412—I
strongly support, rather, H.R. 7412 and urge its adoption.
And I yield back, Mr. Chair.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement?
All right, seeing none, I would like to recognize the Ranking
Member to speak on this bill.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman. I share your com-
mitment to recovering fraudulent obtained COVID-19 pandemic re-
lief funds.
As you may recall, I led efforts to extend the statute of limita-
tions for fraud in the EIDL and PPP programs. This bill, which be-
came law, sent a strong message that unscrupulous behavior will
not be tolerated and that those who commit fraud will be held ac-
countable in the years to come. And in this Congress, we came to-
gether to extend the statute of limitations in two more pandemic
relief programs.
While we may never know the exact amount of fraud, there is
no doubt that the vast majority of the fraud occurred in the first
9 months of the pandemic, during President Trump’s first term,
when the guardrails were lowered to get the money out the door
quickly during the crisis. We also know with certainty that the
SBA took a number of steps to curtail that fraud, including reinsti-
tuting longstanding controls, establishing a Fraud Risk Manage-
ment Board, and creating a Special Counsel for Enterprise Risk.
Currently, the OIG has more than 130,000 actionable leads that
have been submitted to their hotline. The issue before us is not a
failure to identify fraud. The OIG has enough credible leads to re-
main active for decades. The real challenge is ensuring our law en-
forcement community has the resources it needs to thoroughly in-
vestigate and prosecute fraud.
I appreciate the efforts of the Chairman to come up with a cre-
ative solution to help recover fraudulent funds, and I commend
Representative Olszewski for leading this bill along with Mr. Wil-
liams.
Thank you, and I yield back.
Chairman WILLIAMS. Thank you, and the gentlelady does yield
back. And does anyone wish to offer an amendment?
Seeing none, the question now occurs in order in H.R. 7412, re-
ported favorably to the House.
All those in favor say aye.
All those opposed say no.
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And depending on the Chair, the ayes have it, and H.R. 7412——
Mr. STAUBER. Mr. Chair?
Chairman WILLIAMS. Yes, sir.
Mr. MEUSER. I request a recorded vote, please.
Chairman WILLIAMS. A recorded vote has been requested, and
a roll call vote is ordered. So, pursuant to Committee Rule 13 and
House Rule 11, further proceedings on this bill are postponed.
Okay, now the Committee will stand in recess, subject to the call
of the Chair. Members, please remain in your seats while we set
up the voting software. This will be very brief.
[Recess.]
Chairman WILLIAMS. The Committee will now come to order.
We will resume consideration of the bills on which roll call votes
were requested and postponed.
We will start with H.R. 7401. The question now occurs in order
in H.R. 7401, reported favorably to the House. The Clerk will open
the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have
not voted or wish to change their vote? If not, the Clerk will close
the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7401 is ordered, reported to the
House with a favorable recommendation.
The question now occurs in order in H.R. 7396, reported favor-
ably to the House.
The Clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Okay, are there any other Members who
have not voted or wish to change their vote? If not, the Clerk will
close the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7396 is ordered, reported to the
House with a favorable recommendation.
The question now occurs in order in H.R. 7412, reported favor-
ably to the House. The Clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have
not voted or wish to change their vote? If not, the Clerk will close
the vote.
The Clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 24, and
the noes are zero.
Chairman WILLIAMS. H.R. 7412 is ordered, reported to the
House with a favorable recommendation.
And if there is no further business, this concludes today’s mark-
up. I want to thank all of you for this.
Without objection, the Committee staff is authorized to make
technical and conforming changes, and Members have 2 business
days to file additional supplemental dissenting and minority views.
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I want to thank all of you for being here today. Again, without
objection, the Committee stands adjourned. Thank you.
[Whereupon, at 9:43 a.m., the committee was adjourned.]
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APPENDIX
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Æ
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File and source
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- 16,646,125 bytes
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- ab4f2bd34fc324965494f066384ef7dce3f3e2774cff7671ee24254797caebd4
- Our copy
- CHRG-119hhrg62952.pdf
- Original
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