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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘EIDL Oversight Act 

5 of 2021’’. 


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1 SEC. 2. OVERSIGHT REQUIREMENTS FOR ECONOMIC IN2 JURY DISASTER LOANS AND ADVANCES. 

3 (a) ECONOMIC INJURY DISASTER LOANS.—Section 

4 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 

5 amended by inserting after paragraph (15) the following 

6 new paragraph: 

7 ‘‘(16) OVERSIGHT REQUIREMENTS FOR ECO8 NOMIC INJURY DISASTER LOANS.—With respect to a 

9 loan made under paragraph (2), the Administrator 

10 shall take such action as necessary to— 

11 ‘‘(A) establish or strengthen controls to en12 sure that loan proceeds are deposited in a legiti13 mate account of a borrower; 

14 ‘‘(B) ensure that any modification of a 

15 loan application after lender approval of such 

16 loan is reviewed by an employee of the Adminis17 tration; 

18 ‘‘(C) establish or strengthen controls to— 

19 ‘‘(i) ensure that multiple loans are 

20 provided only to eligible borrowers; and 

21 ‘‘(ii) prevent the erroneous duplication 

22 of loans, including by establishing a system 

23 to verify the identity of a borrower using 

24 photo identification; 

25 ‘‘(D) verify the applicant is a legitimate 

26 borrower with the appropriate State or local 


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1 agency through tax returns, documentation re2 lating to incorporation or status as a nonprofit 

3 organization, or another method; 

4 ‘‘(E) ensure that 2 employees of the Ad5 ministration approve each application for a loan 

6 under paragraph (2) and eliminate any proc7 esses of the Administration that allow for si8 multaneous approval of multiple loan applica9 tions; 

10 ‘‘(F) require an individual employee of the 

11 Administration to contact applicants who sub12 mit multiple loan applications from the same 

13 Internet Protocol addresses, email addresses, or 

14 physical addresses, or with the same bank ac15 count number, to verify eligibility of such appli16 cants; and 

17 ‘‘(G) with respect to a borrower of a loan 

18 made under paragraph (2) because of the 

19 COVID–19 pandemic— 

20 ‘‘(i) ensure that such borrower is not 

21 included on the ‘Do Not Pay List’ of the 

22 Department of the Treasury (as described 

23 under section 3354 of title 31, United 

24 States Code); 


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1 ‘‘(ii) ensure that an employer identi2 fication number on an application for such 

3 a loan was registered before February 15, 

4 2020; 

5 ‘‘(iii) prevent duplicate loan applica6 tions with the same employer identification 

7 number or social security number; and 

8 ‘‘(iv) establish a system to prevent 

9 disbursement of such loans to applicants 

10 that submit more than 1 loan application 

11 with the same employer identification num12 ber, social security number, email address13 es, physical addresses, or bank account 

14 number, or from the same Internet Pro15 tocol address.’’. 

16 (b) EIDL ADVANCES.—Section 1110(e) of the 

17 CARES Act (15 U.S.C. 9009(e)) is amended by adding 

18 at the end the following new paragraph: 

19 ‘‘(9) OVERSIGHT REQUIREMENTS.—With re20 spect to an advance made under this subsection, the 

21 Administrator shall take such action as necessary 

22 to— 

23 ‘‘(A) ensure that the advance was depos24 ited in a legitimate account of an individual; 


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1 ‘‘(B) ensure that any modification of a re2 quest for an advance is reviewed by an em3 ployee of the Administration; 

4 ‘‘(C) prevent the erroneous duplication of 

5 advances; 

6 ‘‘(D) ensure that an employer identifica7 tion number included in a request for an ad8 vance— 

9 ‘‘(i) was registered before February 

10 15, 2020; and 

11 ‘‘(ii) is not registered to a person in12 cluded on the ‘Do Not Pay List’ of the De13 partment of the Treasury (as described 

14 under section 3354 of title 31, United 

15 States Code); 

16 ‘‘(E) prevent duplicate requests for an ad17 vance with the same employer identification 

18 number or social security number; and 

19 ‘‘(F) prevent disbursement of advances to 

20 applicants that submit more than 1 request 

21 with the same employer identification number, 

22 social security number, email addresses, phys23 ical addresses, or bank account number, or 

24 from the same Internet Protocol address.’’. 


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1 (c) TARGETED EIDL ADVANCES.—Section 331 of 

2 the Economic Aid to Hard-Hit Small Businesses, Non3 profits, and Venues Act (Public Law 116–260) is amended 

4 by adding at the end the following new subsection: 

5 ‘‘(i) OVERSIGHT REQUIREMENTS.—With respect to a 

6 payment made under this section, the Administrator shall 

7 take such action as necessary to— 

8 ‘‘(1) establish or strengthen controls to ensure 

9 that the payment is deposited in a legitimate ac10 count of a recipient of a payment; 

11 ‘‘(2) ensure that any modification of a request 

12 for a payment is reviewed by an employee of the Ad13 ministration; 

14 ‘‘(3) establish or strengthen controls to prevent 

15 the erroneous duplication of payments under this 

16 section, including by establishing a system to verify 

17 the identity of an applicant using photo identifica18 tion; 

19 ‘‘(4) verify the applicant is a legitimate appli20 cant for a payment with the appropriate State or 

21 local agency through tax returns, documentation re22 lating to incorporation or status as a nonprofit orga23 nization, or another method; 

24 ‘‘(5) ensure that 2 employees of the Adminis25 tration approve each request for a payment and 


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1 eliminate any processes of the Administration that 

2 allow for simultaneous approval of multiple ad3 vances; 

4 ‘‘(6) require an individual employee of the Ad5 ministration to contact applicants who submit mul6 tiple requests for a payment from the same Internet 

7 Protocol addresses, email addresses, or physical ad8 dresses, or with the same bank account number, to 

9 verify eligibility of such applicants; 

10 ‘‘(7) ensure that an employer identification 

11 number included in a request for a payment— 

12 ‘‘(A) was registered before February 15, 

13 2020; and 

14 ‘‘(B) is not registered to a person included 

15 on the ‘Do Not Pay List’ of the Department of 

16 the Treasury (as described under section 3354 

17 of title 31, United States Code); 

18 ‘‘(8) prevent duplicate requests for a payment 

19 with the same employer identification number or so20 cial security number; and 

21 ‘‘(9) establish a system to prevent disbursement 

22 of payments to applicants that submit more than 1 

23 request with the same employer identification num24 ber, social security number, email addresses, physVerDate Sep 11 2014 23:09 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3202.IH H3202

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1 ical addresses, or bank account number, or from the 

2 same Internet Protocol address.’’. 

Æ 


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