EIDL Oversight Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3202 To amend the Small Business Act and the CARES Act to establish oversight requirements for economic injury disaster loans and advances, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 13, 2021 Mr. LUETKEMEYER (for himself, Mr. WILLIAMS of Texas, Mr. HAGEDORN, Mr. STAUBER, Mr. MEUSER, Ms. TENNEY, Mr. GARBARINO, Mrs. KIM of California, Ms. VAN DUYNE, Mr. DONALDS, Ms. SALAZAR, and Mr. FITZGERALD) introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act and the CARES Act to establish oversight requirements for economic injury disaster loans and advances, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘EIDL Oversight Act 4 of 2021’’. 5 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 3202 IH SEC. 2. OVERSIGHT REQUIREMENTS FOR ECONOMIC IN- 1 JURY DISASTER LOANS AND ADVANCES. 2 (a) ECONOMIC INJURY DISASTER LOANS.—Section 3 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 4 amended by inserting after paragraph (15) the following 5 new paragraph: 6 ‘‘(16) OVERSIGHT REQUIREMENTS FOR ECO- 7 NOMIC INJURY DISASTER LOANS.—With respect to a 8 loan made under paragraph (2), the Administrator 9 shall take such action as necessary to— 10 ‘‘(A) establish or strengthen controls to en- 11 sure that loan proceeds are deposited in a legiti- 12 mate account of a borrower; 13 ‘‘(B) ensure that any modification of a 14 loan application after lender approval of such 15 loan is reviewed by an employee of the Adminis- 16 tration; 17 ‘‘(C) establish or strengthen controls to— 18 ‘‘(i) ensure that multiple loans are 19 provided only to eligible borrowers; and 20 ‘‘(ii) prevent the erroneous duplication 21 of loans, including by establishing a system 22 to verify the identity of a borrower using 23 photo identification; 24 ‘‘(D) verify the applicant is a legitimate 25 borrower with the appropriate State or local 26 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 3202 IH agency through tax returns, documentation re- 1 lating to incorporation or status as a nonprofit 2 organization, or another method; 3 ‘‘(E) ensure that 2 employees of the Ad- 4 ministration approve each application for a loan 5 under paragraph (2) and eliminate any proc- 6 esses of the Administration that allow for si- 7 multaneous approval of multiple loan applica- 8 tions; 9 ‘‘(F) require an individual employee of the 10 Administration to contact applicants who sub- 11 mit multiple loan applications from the same 12 Internet Protocol addresses, email addresses, or 13 physical addresses, or with the same bank ac- 14 count number, to verify eligibility of such appli- 15 cants; and 16 ‘‘(G) with respect to a borrower of a loan 17 made under paragraph (2) because of the 18 COVID–19 pandemic— 19 ‘‘(i) ensure that such borrower is not 20 included on the ‘Do Not Pay List’ of the 21 Department of the Treasury (as described 22 under section 3354 of title 31, United 23 States Code); 24 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 3202 IH ‘‘(ii) ensure that an employer identi- 1 fication number on an application for such 2 a loan was registered before February 15, 3 2020; 4 ‘‘(iii) prevent duplicate loan applica- 5 tions with the same employer identification 6 number or social security number; and 7 ‘‘(iv) establish a system to prevent 8 disbursement of such loans to applicants 9 that submit more than 1 loan application 10 with the same employer identification num- 11 ber, social security number, email address- 12 es, physical addresses, or bank account 13 number, or from the same Internet Pro- 14 tocol address.’’. 15 (b) EIDL ADVANCES.—Section 1110(e) of the 16 CARES Act (15 U.S.C. 9009(e)) is amended by adding 17 at the end the following new paragraph: 18 ‘‘(9) OVERSIGHT REQUIREMENTS.—With re- 19 spect to an advance made under this subsection, the 20 Administrator shall take such action as necessary 21 to— 22 ‘‘(A) ensure that the advance was depos- 23 ited in a legitimate account of an individual; 24 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 3202 IH ‘‘(B) ensure that any modification of a re- 1 quest for an advance is reviewed by an em- 2 ployee of the Administration; 3 ‘‘(C) prevent the erroneous duplication of 4 advances; 5 ‘‘(D) ensure that an employer identifica- 6 tion number included in a request for an ad- 7 vance— 8 ‘‘(i) was registered before February 9 15, 2020; and 10 ‘‘(ii) is not registered to a person in- 11 cluded on the ‘Do Not Pay List’ of the De- 12 partment of the Treasury (as described 13 under section 3354 of title 31, United 14 States Code); 15 ‘‘(E) prevent duplicate requests for an ad- 16 vance with the same employer identification 17 number or social security number; and 18 ‘‘(F) prevent disbursement of advances to 19 applicants that submit more than 1 request 20 with the same employer identification number, 21 social security number, email addresses, phys- 22 ical addresses, or bank account number, or 23 from the same Internet Protocol address.’’. 24 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 3202 IH (c) TARGETED EIDL ADVANCES.—Section 331 of 1 the Economic Aid to Hard-Hit Small Businesses, Non- 2 profits, and Venues Act (Public Law 116–260) is amended 3 by adding at the end the following new subsection: 4 ‘‘(i) OVERSIGHT REQUIREMENTS.—With respect to a 5 payment made under this section, the Administrator shall 6 take such action as necessary to— 7 ‘‘(1) establish or strengthen controls to ensure 8 that the payment is deposited in a legitimate ac- 9 count of a recipient of a payment; 10 ‘‘(2) ensure that any modification of a request 11 for a payment is reviewed by an employee of the Ad- 12 ministration; 13 ‘‘(3) establish or strengthen controls to prevent 14 the erroneous duplication of payments under this 15 section, including by establishing a system to verify 16 the identity of an applicant using photo identifica- 17 tion; 18 ‘‘(4) verify the applicant is a legitimate appli- 19 cant for a payment with the appropriate State or 20 local agency through tax returns, documentation re- 21 lating to incorporation or status as a nonprofit orga- 22 nization, or another method; 23 ‘‘(5) ensure that 2 employees of the Adminis- 24 tration approve each request for a payment and 25 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 3202 IH eliminate any processes of the Administration that 1 allow for simultaneous approval of multiple ad- 2 vances; 3 ‘‘(6) require an individual employee of the Ad- 4 ministration to contact applicants who submit mul- 5 tiple requests for a payment from the same Internet 6 Protocol addresses, email addresses, or physical ad- 7 dresses, or with the same bank account number, to 8 verify eligibility of such applicants; 9 ‘‘(7) ensure that an employer identification 10 number included in a request for a payment— 11 ‘‘(A) was registered before February 15, 12 2020; and 13 ‘‘(B) is not registered to a person included 14 on the ‘Do Not Pay List’ of the Department of 15 the Treasury (as described under section 3354 16 of title 31, United States Code); 17 ‘‘(8) prevent duplicate requests for a payment 18 with the same employer identification number or so- 19 cial security number; and 20 ‘‘(9) establish a system to prevent disbursement 21 of payments to applicants that submit more than 1 22 request with the same employer identification num- 23 ber, social security number, email addresses, phys- 24 VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 3202 IH ical addresses, or bank account number, or from the 1 same Internet Protocol address.’’. 2 Æ VerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H3202.IH H3202 pamtmann on DSKBC07HB2PROD with BILLS