Report on Fraud Relating to Certain Covid-19 Loans

Floor Speech

I rise today in support of the six bills we are considering today. America's 33 million small businesses are the foundation of our Nation's economy and account for two-thirds of new jobs. The Small Business Committee has a long tradition of working together on behalf of our Nation's small businesses. I am pleased we are coming together yet again.

Let me start off by thanking Representatives Bean and Mfume for their bipartisan work on H.R. 4666, which will help the committee fulfill its oversight responsibilities.

SBA was a lifeline to millions of small businesses throughout the pandemic. More than $1.2 trillion in economic aid was distributed to help businesses keep their doors open.

During these unprecedented times, the SBA, under the Trump administration, weakened and removed these internal controls in an effort to disburse funds swiftly.

This resulted in roughly 87 percent of likely fraud originating in the first 9 months of the pandemic, largely due to organized criminal syndicates and transnational gangs exploiting the weakened controls and stealing billions of dollars from the American people.

Upon taking office, Administrator Guzman strengthened internal controls, and they remain in place to this day, but the damage was done.

In order to improve our understanding and prevent future fraud, H.R. 4666 requires the OIG to send periodic reports over the next 2 years to provide the Committee with detailed information that it needs to conduct robust oversight.

Let me take a minute to commend our IG and their commitment to rooting out fraud and abuse. I also highlight the need to fully meet their budget request rather than make any cuts. Doing so harms their ability to hold fraudsters accountable.

As of this October, their work has resulted in nearly 1,200 indictments, almost 950 arrests, and over 600 convictions. Almost $400 million in seized or forfeited assets and more than $500 million in restitution orders have been returned to the American taxpayers.

I urge my colleagues to support H.R. 4666, as amended, and I reserve the balance of my time.
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Ms. VELAZQUEZ. Mr. Speaker, while much of the focus today has been about pandemic fraud, we must also be mindful of the stellar work that the SBA did to help small businesses stay afloat throughout the pandemic. Distributing more than a trillion dollars in economic aid was a tall order for a small agency.

Today, we are seeing the fruits of their labor. Small businesses have been recovering with unprecedented speed and success, and more Americans are launching small businesses than ever before, with more than 14 million new starts since January 2021.

Once again, I thank Representative Bean and Representative Mfume, and I urge my colleagues to support this measure, as amended.

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