Troy Downing Calls For Assistance For Businesses 'Disproportionately Harmed By Lockdown Policy'

5 months ago

During a House Small Business Committee hearing markup prior to the Congressional recess, Rep. Troy Downing (R-MT) questioned witnesses about the impact of lockdown policies on small businesses, and instances of fraud.

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00:00I recognize the bill's sponsor, Mr. Downing, for a statement on the bill.

00:03Thank you, Madam Chair.

00:05Over the course of the coronavirus pandemic, the Small Business Administration carried out an extensive effort

00:12channeling funding to small businesses facing unprecedented economic challenges.

00:18In total, during this period, SBA provided over $1.2 trillion in emergency loans and grants to small businesses.

00:25Two of these SBA COVID-era programs, the Restaurant Revitalization Fund and the Shuttered Venue Operators Grant,

00:32targeted financial assistance towards businesses that rely on confined gathering places

00:37and were thus disproportionately harmed by lockdown policies.

00:41While COVID-era SBA programs in many cases delivered much-needed aid to small businesses,

00:47they were also exploited to an unacceptable degree by criminals seeking to defraud American taxpayers

00:53and secure illegitimate loans and grants.

00:57According to a 2023 report from the SBA's Office of Inspector General,

01:02SBA distributed over $200 billion in potentially fraudulent funds in its COVID-era programs.

01:09This level of fraud undermines the integrity of the SBA.

01:13It is essential that we track these criminal fraudsters down and hold them accountable.

01:18Notably, the statute of limitations for prosecuting fraud for SBA's Restaurant Revitalization Fund

01:24and the Shuttered Venue Operators Grant is set to expire in December.

01:29If Congress doesn't act, law enforcement will not be able to investigate and prosecute these crimes.

01:34This is why I introduce H.R.4495, the SBA Fraud Enforcement Extension Act.

01:39This bill extends the statute of limitations from five years to ten years for fraud

01:44with respect to SBA's Restaurant Revitalization Fund and Shuttered Venue Operations Grant.

01:49This extension will provide critical time for law enforcement to track down fraudsters and hold them accountable.

01:55Moreover, it will establish parity with the statute of limitations for fraud for other SBA COVID-era programs

02:03like the Paycheck Protection Program and the Economic Injury Disaster Loan.

02:07I'd like to personally thank my colleague and former Air Force veteran, Dr. Conway, for co-leading this legislation with me.

02:16The fraudulent spending of federal taxpayer dollars undermines our trust in our government.

02:20It is essential that law enforcement is given the proper tools and authority to punish those who subvert the integrity of the SBA

02:27and to ensure fraudsters face consequences for their actions.

02:32With that, I urge my colleagues to support this legislation, and Madam Chair, I yield my time.

Troy Downing Calls For Assistance For Businesses 'Disproportionately Harmed By Lockdown Policy'

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