Returning Erroneous Covid Loans Addressing Illegal and Misappropriated Taxpayer Funds Act

Floor Speech

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.
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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.

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