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)]
<DOC>
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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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