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-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘EIDL Oversight Act 
of 2021’’. 
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SEC. 2. OVERSIGHT REQUIREMENTS FOR ECONOMIC IN-
JURY DISASTER LOANS AND ADVANCES. 
(a) ECONOMIC INJURY DISASTER LOANS.—Section 
7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting after paragraph (15) the following 
new paragraph: 
‘‘(16) OVERSIGHT
REQUIREMENTS
FOR
ECO-
NOMIC INJURY DISASTER LOANS.—With respect to a 
loan made under paragraph (2), the Administrator 
shall take such action as necessary to— 
‘‘(A) establish or strengthen controls to en-
sure that loan proceeds are deposited in a legiti-
mate account of a borrower; 
‘‘(B) ensure that any modification of a 
loan application after lender approval of such 
loan is reviewed by an employee of the Adminis-
tration; 
‘‘(C) establish or strengthen controls to— 
‘‘(i) ensure that multiple loans are 
provided only to eligible borrowers; and 
‘‘(ii) prevent the erroneous duplication 
of loans, including by establishing a system 
to verify the identity of a borrower using 
photo identification; 
‘‘(D) verify the applicant is a legitimate 
borrower with the appropriate State or local 
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agency through tax returns, documentation re-
lating to incorporation or status as a nonprofit 
organization, or another method; 
‘‘(E) ensure that 2 employees of the Ad-
ministration approve each application for a loan 
under paragraph (2) and eliminate any proc-
esses of the Administration that allow for si-
multaneous approval of multiple loan applica-
tions; 
‘‘(F) require an individual employee of the 
Administration to contact applicants who sub-
mit multiple loan applications from the same 
Internet Protocol addresses, email addresses, or 
physical addresses, or with the same bank ac-
count number, to verify eligibility of such appli-
cants; and 
‘‘(G) with respect to a borrower of a loan 
made under paragraph (2) because of the 
COVID–19 pandemic— 
‘‘(i) ensure that such borrower is not 
included on the ‘Do Not Pay List’ of the 
Department of the Treasury (as described 
under section 3354 of title 31, United 
States Code); 
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‘‘(ii) ensure that an employer identi-
fication number on an application for such 
a loan was registered before February 15, 
2020; 
‘‘(iii) prevent duplicate loan applica-
tions with the same employer identification 
number or social security number; and 
‘‘(iv) establish a system to prevent 
disbursement of such loans to applicants 
that submit more than 1 loan application 
with the same employer identification num-
ber, social security number, email address-
es, physical addresses, or bank account 
number, or from the same Internet Pro-
tocol address.’’. 
(b) EIDL ADVANCES.—Section 1110(e) of the 
CARES Act (15 U.S.C. 9009(e)) is amended by adding 
at the end the following new paragraph: 
‘‘(9) OVERSIGHT
REQUIREMENTS.—With re-
spect to an advance made under this subsection, the 
Administrator shall take such action as necessary 
to— 
‘‘(A) ensure that the advance was depos-
ited in a legitimate account of an individual; 
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‘‘(B) ensure that any modification of a re-
quest for an advance is reviewed by an em-
ployee of the Administration; 
‘‘(C) prevent the erroneous duplication of 
advances; 
‘‘(D) ensure that an employer identifica-
tion number included in a request for an ad-
vance— 
‘‘(i) was registered before February 
15, 2020; and 
‘‘(ii) is not registered to a person in-
cluded on the ‘Do Not Pay List’ of the De-
partment of the Treasury (as described 
under section 3354 of title 31, United 
States Code); 
‘‘(E) prevent duplicate requests for an ad-
vance with the same employer identification 
number or social security number; and 
‘‘(F) prevent disbursement of advances to 
applicants that submit more than 1 request 
with the same employer identification number, 
social security number, email addresses, phys-
ical addresses, or bank account number, or 
from the same Internet Protocol address.’’. 
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(c) TARGETED EIDL ADVANCES.—Section 331 of 
the Economic Aid to Hard-Hit Small Businesses, Non-
profits, and Venues Act (Public Law 116–260) is amended 
by adding at the end the following new subsection: 
‘‘(i) OVERSIGHT REQUIREMENTS.—With respect to a 
payment made under this section, the Administrator shall 
take such action as necessary to— 
‘‘(1) establish or strengthen controls to ensure 
that the payment is deposited in a legitimate ac-
count of a recipient of a payment; 
‘‘(2) ensure that any modification of a request 
for a payment is reviewed by an employee of the Ad-
ministration; 
‘‘(3) establish or strengthen controls to prevent 
the erroneous duplication of payments under this 
section, including by establishing a system to verify 
the identity of an applicant using photo identifica-
tion; 
‘‘(4) verify the applicant is a legitimate appli-
cant for a payment with the appropriate State or 
local agency through tax returns, documentation re-
lating to incorporation or status as a nonprofit orga-
nization, or another method; 
‘‘(5) ensure that 2 employees of the Adminis-
tration approve each request for a payment and 
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eliminate any processes of the Administration that 
allow for simultaneous approval of multiple ad-
vances; 
‘‘(6) require an individual employee of the Ad-
ministration to contact applicants who submit mul-
tiple requests for a payment from the same Internet 
Protocol addresses, email addresses, or physical ad-
dresses, or with the same bank account number, to 
verify eligibility of such applicants; 
‘‘(7) ensure that an employer identification 
number included in a request for a payment— 
‘‘(A) was registered before February 15, 
2020; and 
‘‘(B) is not registered to a person included 
on the ‘Do Not Pay List’ of the Department of 
the Treasury (as described under section 3354 
of title 31, United States Code); 
‘‘(8) prevent duplicate requests for a payment 
with the same employer identification number or so-
cial security number; and 
‘‘(9) establish a system to prevent disbursement 
of payments to applicants that submit more than 1 
request with the same employer identification num-
ber, social security number, email addresses, phys-
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ical addresses, or bank account number, or from the 
same Internet Protocol address.’’. 
Æ 
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