[Congressional Record Volume 169, Number 195 (Tuesday, November 28, 2023)] [House] [Pages H5911-H5913] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] RETURNING ERRONEOUS COVID LOANS ADDRESSING ILLEGAL AND MISAPPROPRIATED TAXPAYER FUNDS ACT Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4667) to require the Administrator of the Small Business Administration to issue guidance and rules for lenders and the Small Business Administration on handling amounts of Paycheck Protection Loans returned by borrowers, and for other purposes, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 4667 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 ``Returning Erroneous COVID Loans Addressing Illegal and Misappropriated Taxpayer Funds Act'' or the ``RECLAIM Taxpayer Funds Act''. SEC. 2. PAYCHECK PROTECTION LOAN RETURN GUIDANCE. (a) In General.--Not later than 30 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall issue guidance for borrowers and lenders on returning any unused amounts of PPP loans made to the borrower. (b) Guidance Requirements.--The guidance required by subsection (a) shall include-- (1) detailed guidance for borrowers on how to return to the lender that made a PPP loan to the borrower the unused amounts of such PPP loan; (2) detailed guidance for lenders regarding the responsibilities of lenders, including that a lender must-- (A) accept the return of any unused amounts of any PPP loan from a borrower or any other source (including law enforcement) if the lender made such PPP loan; (B) document the reason for the return of such unused amounts, the identification number of the PPP loan, the name of the borrower of the PPP loan, and the name of the person returning such unused amounts if different than the borrower; (C) remit such unused amounts to the Administration; (D) make the guidance described in paragraph (1) available to borrowers described in such paragraph; and (E) if the lender made a PPP loan, periodically certify that the lender has reported and returned to the Administration all unused amounts of PPP loans returned to the lender; (3) detailed guidance for financial institutions holding funds from a PPP loan on the procedure for returning such funds to the Administration if the financial institution suspects the borrower may be committing fraud with respect to the PPP loan or any other issue for which the financial institution should return the funds the Administration; and (4) detailed guidance for borrowers and lenders of PPP loans, financial institutions described in paragraph (3), and other relevant individuals and entities on complying with the requirement to report to the Office of the Inspector General for the Small Business Administration any information indicating the occurrence of fraud with respect to a PPP loan. SEC. 3. RETURNS HANDLING PROCESS. (a) In General.--Not later than 30 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall issue guidance establishing a process for the Small Business Administration to track amounts of PPP loans returned to mitigate the risk of financial loss to the Federal Government. (b) Returns Handling Process Requirements.--The process established under subsection (a) shall require-- (1) the Administration to accept returns of unused amounts of PPP loans; and (2) the Administrator to deposit in the general fund of the Treasury the unused amounts of PPP loans returned to the Administration. SEC. 4. DEFINITIONS. In this Act: (1) Administration.--The term ``Administration'' means the Small Business Administration. (2) Administrator.--The term ``Administrator'' means the Administration of the Small Business Administration. (3) PPP loan.--The term ``PPP loan'' means a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)). SEC. 5. COMPLIANCE WITH CUTGO. No additional amounts are authorized to be appropriated to carry out this Act. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez) each will control 20 minutes. The Chair recognizes the gentleman from Texas. General Leave Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may consume. I rise today in full support of H.R. 4667, better known as the RECLAIM Taxpayer Funds Act, introduced by Representative Salazar of the great State of Florida. During the COVID-19 pandemic, banks and credit unions stepped up to administer the Paycheck Protection Program, or PPP. [[Page H5912]] They were able to disburse over $800 billion to small businesses in need. I have said that what these financial institutions did in the early days of the pandemic was a reminder of the car manufacturers in World War II. They dedicated all their efforts to help support our Nation in its time of need. Unfortunately, as we have seen in all the pandemic lending programs, some opportunistic criminals took advantage of these aid efforts. Fraudsters were able to steal an estimated $84 billion in these PPP funds. While the SBA OIG continues to investigate many of these cases, lenders themselves have become aware of some of those stolen dollars sitting at their institutions. However, the OIG and some of these lenders have said there isn't any clarity on what they need to do to turn over these ill-gotten funds back to the government. This bill fixes this problem. It requires the SBA to post guidance to lenders on how to return fraudulent PPP funds. The SBA would also be required to work with the Department of Treasury to see that these funds are returned promptly to the taxpayers. Mr. Speaker, I urge my colleagues to support this bill to take a commonsense step forward in returning stolen PPP funds to the taxpayers. Mr. Speaker, I reserve the balance of my time. Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 4667, as amended, which will ensure any unused PPP funds are properly returned to the American taxpayers. The legislation requires SBA to issue guidance for financial institutions on how to return PPP funds. In May, the IG released a management advisory that said SBA's lack of guidance, regulations, and ability to account for returned PPP funds is an obstacle for anyone who opts to return unused PPP funds. Unfortunately, this has led to confusion for borrowers and lenders, leading some lenders to even inform borrowers that the SBA could not accept funds. This bill will resolve the problem by requiring SBA to establish clear and detailed guidance for returning PPP funds to the SBA. The legislation will also require the SBA to establish a process on how to deposit unused PPP funds in the Treasury Department's general fund. I thank Ms. Salazar and Mr. McGarvey for introducing this bill to enhance the PPP recovery process. The Federal Government needs to be a good steward of taxpayers' dollars, and this bill goes a long way to improve the Nation's fiscal health by ensuring the SBA has processes in place to account for returned PPP funds. Mr. Speaker, I reserve the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as she may consume to the gentlewoman from Florida (Ms. Salazar). Ms. SALAZAR. Mr. Speaker, I thank the chairman for yielding his time and for supporting my bill. Mr. Speaker, 3 years ago Congress created the Paycheck Protection Program in the CARES Act in response to the COVID-19 pandemic. What was the goal of this program? To keep small businesses open and to keep employees on payroll. The intention of the PPP program was clear, and it was very good. Unfortunately, bad actors took advantage of it and used it to steal billions of dollars from all of us. The Small Business Administration Inspector General has reported that there are potentially $200 billion worth of fraudulent loans. That is nearly 20 percent of all COVID pandemic loans. That is appalling and unacceptable. Mr. Speaker, a time of reckoning is now coming for those who stole those billions of dollars from the taxpayers' funds. My bipartisan bill, called the RECLAIM Taxpayer Funds Act, would require the Small Business Administration, the SBA, to create detailed rules and guidance for borrowers and lenders to return those stolen funds back to the United States Treasury Department. My district, the city of Miami, is home to thousands and thousands of small businesses, including some of the best restaurants in this country. Let's continue to support hardworking small businesses while punishing those bad actors. We can definitely do both. H.R. 4667 is the right step to regain government accountability in a bipartisan effort. Mr. Speaker, I thank my Democrat friend from Kentucky, Mr. McGarvey, for introducing this bill with me, and I encourage my colleagues to vote in support of H.R. 4667, which puts Americans first by ensuring that criminals are not stealing our constituents' money. Ms. VELAZQUEZ. Mr. Speaker, I yield such time as he may consume to the gentleman from Kentucky (Mr. McGarvey), the ranking member of the Innovation Entrepreneurship and Workforce Development Subcommittee. Mr. McGARVEY. Mr. Speaker, I rise today in support of H.R. 4667, the RECLAIM Taxpayer Funds Act, which I am proud to co-lead alongside Representative Salazar. I am grateful for her partnership on this bipartisan bill, and I am glad to see it come to the floor today. Small businesses are the backbone of the American economy. That is definitely true in my hometown of Louisville, Kentucky, and was on full display this past weekend as Louisvillians were encouraged to shop local and go and see our wonderful small business community. As I visited small businesses from Saint Matthews to NuLu to West Louisville, I reflected on where we were, where these small businesses were just a few short years ago. I was reminded of earlier this year when we had Small Business Administrator Guzman come to Louisville and meet with small business owners from across my district. We had listening sessions, and we heard the same message over and over again. That is what these businessowners told us. They told us they wouldn't be here today because they wouldn't have survived the pandemic if it weren't for the Paycheck Protection Program and other COVID relief programs. PPP worked. It worked. It was a success. It is the reason we still have towns across this country full of vibrant, independent, local business. Nevertheless, in order to get that money out the door as quickly as possible, the previous administration loosened the guardrails designed to prevent fraud. That opened the door for bad actors to take advantage of the program. There were people who flatout lied to obtain PPP loans. There were others who received more than they deserved; some who received more even through good-faith errors. Mr. Speaker, we need to get that money back. That is why the Department of Justice and the SBA are working to prosecute those who took advantage of the program and recover stolen funds. To date, there have been hundreds of arrests and convictions related to COVID relief fraud, and they have recovered billions of dollars. We must have clear processes in place as this money comes back to lenders and to the SBA. That is why this bill requires the SBA to issue guidance and rules for lenders, for borrowers, and for the SBA itself on handling PPP loans that are returned. H.R. 4667 is a commonsense bill that will establish these clear rules for the road and ensure that taxpayer dollars do not go to waste. It is a necessary step in the right direction as we continue our recovery from the pandemic. I thank Chairman Williams, Ranking Member Velazquez, and Congresswoman Salazar for their leadership and support of this bill, and I urge my colleagues to support H.R. 4667. Mr. WILLIAMS of Texas. Mr. Speaker, I am prepared to close, and I reserve the balance of my time. Ms. VELAZQUEZ. Mr. Speaker, the RECLAIM Taxpayer Funds Act requires SBA to establish clear guidance for borrowers, lenders, and financial institutions on how to return PPP funds. It will ensure best practices are in place in the event of another global catastrophe. I thank Representative Salazar and Mr. McGarvey for their effort, and I urge my colleagues to support the legislation, as amended. Mr. Speaker, I yield back the balance of my time. Mr. WILLIAMS of Texas. Mr. Speaker, it is clear that the COVID-19 pandemic broke the SBA, and as a result, American taxpayers and our Nation's [[Page H5913]] small businesses have had to foot the bill for the hundreds of billions of dollars in stolen funds. I thank Representative Salazar for introducing H.R. 4667 as it creates a much-needed accountability and transparency with the SBA as we work to retrieve the taxpayer dollars wrongfully lost. Mr. Speaker, I urge my colleagues on both sides of the aisle to join us in our fight to reclaim these stolen funds and unanimously support H.R. 4667. Mr. Speaker, I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Texas (Mr. Williams) that the House suspend the rules and pass the bill, H.R. 4667, as amended. The question was taken. The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it. Mr. WILLIAMS of Texas. Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present. The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed. The point of no quorum is considered withdrawn. ____________________