EIDL Oversight Act of 2021

Bill: 117-hr-3202
Sponsor: full_name: Rep. Luetkemeyer, Blaine [R-MO-3]
Introduced: 2021-05-13
Policy area: Commerce
Subjects: Bank accounts, deposits, capital

Cardiovascular and respiratory health

Disaster relief and insurance

Economic performance and conditions

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Small business
Latest action: action_date: 2021-05-13
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2021-05-13
action_desc: Introduced in House
text: <p><b>EIDL Oversight Act of 2021</b></p> <p>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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 3202 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. Short title This Act may be cited as the EIDL Oversight Act of 2021 . 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. .