Title: EIDL Oversight Act of 2021
Policy area: Commerce

Summary:
EIDL Oversight Act of 2021
This bill establishes oversight requirements for economic injury disaster loans and advances made on those loans. Such requirements include directing the Small Business Administration (SBA) to (1) ensure that loan and advance proceeds are deposited in a legitimate account of a borrower, (2) ensure that any modification of a request for a loan or an advance is reviewed by an SBA employee, and (3) verify the legitimacy of loan or advance applicants through tax returns or other documentation.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3202 Introduced in House (IH)]

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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 Representatives 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''.

SEC. 2. OVERSIGHT REQUIREMENTS FOR ECONOMIC INJURY 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 economic 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 ensure 
                that loan proceeds are deposited in a legitimate 
                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 Administration;
                    ``(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 agency through tax 
                returns, documentation relating to incorporation or 
                status as a nonprofit organization, or another method;
                    ``(E) ensure that 2 employees of the Administration 
                approve each application for a loan under paragraph (2) 
                and eliminate any processes of the Administration that 
                allow for simultaneous approval of multiple loan 
                applications;
                    ``(F) require an individual employee of the 
                Administration to contact applicants who submit 
                multiple loan applications from the same Internet 
                Protocol addresses, email addresses, or physical 
                addresses, or with the same bank account number, to 
                verify eligibility of such applicants; 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);
                            ``(ii) ensure that an employer 
                        identification number on an application for 
                        such a loan was registered before February 15, 
                        2020;
                            ``(iii) prevent duplicate loan applications 
                        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 number, social 
                        security number, email addresses, physical 
                        addresses, or bank account number, or from the 
                        same Internet Protocol 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 respect to an advance 
        made under this subsection, the Administrator shall take such 
        action as necessary to--
                    ``(A) ensure that the advance was deposited in a 
                legitimate account of an individual;
                    ``(B) ensure that any modification of a request for 
                an advance is reviewed by an employee of the 
                Administration;
                    ``(C) prevent the erroneous duplication of 
                advances;
                    ``(D) ensure that an employer identification number 
                included in a request for an advance--
                            ``(i) was registered before February 15, 
                        2020; and
                            ``(ii) 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);
                    ``(E) prevent duplicate requests for an advance 
                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, physical addresses, or bank 
                account number, or from the same Internet Protocol 
                address.''.
    (c) Targeted EIDL Advances.--Section 331 of the Economic Aid to 
Hard-Hit Small Businesses, Nonprofits, 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 account of a recipient of 
        a payment;
            ``(2) ensure that any modification of a request for a 
        payment is reviewed by an employee of the Administration;
            ``(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 identification;
            ``(4) verify the applicant is a legitimate applicant for a 
        payment with the appropriate State or local agency through tax 
        returns, documentation relating to incorporation or status as a 
        nonprofit organization, or another method;
            ``(5) ensure that 2 employees of the Administration approve 
        each request for a payment and eliminate any processes of the 
        Administration that allow for simultaneous approval of multiple 
        advances;
            ``(6) require an individual employee of the Administration 
        to contact applicants who submit multiple requests for a 
        payment from the same Internet Protocol addresses, email 
        addresses, or physical addresses, 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 social 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 number, social security number, 
        email addresses, physical addresses, or bank account number, or 
        from the same Internet Protocol address.''.
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