US House passes 7 small business bills – 2 for PPP and EIDL loan fraud

The House passed seven bipartisan small business bills aimed at improving the operation and oversight of key Small Business Administration (SBA) programs.

7 Small Business Bills Pass US House

The slew of bills includes legislation to extend the statute of limitations on small business pandemic fraud cases, improve workforce development deals and improve the procurement process for small businesses. companies. Among the bills passed, two would establish a ten-year statute of limitations for lawsuits related to Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) fraud.

“These seven bills will help make core SBA programs more secure, accessible, and focused on the most pressing challenges for small businesses,” said New York President Nydia M. Velázquez.

What are the resolutions?

The bills are designed to promote policies that encourage small business development, hold small business pandemic fraudsters accountable, grow the small business workforce, and support small entrepreneurs who do business with the federal government.

  • House PPP Resolution 7352 and Bank Fraud Harmonization Act of 2022 would establish a 10-year statute of limitations for all forms of PPP loan fraud, including cases involving loans of fintech origin, in accordance with the legislation on bank fraud.
  • House Resolution 7334, the EIDL COVID-19 Fraud Statute of Limitations Act of 2022 would establish a 10-year statute of limitations for all EIDL COVID fraud, including EIDL Advances and Targeted EIDL Advances.
  • House Resolution 7622, ​​Small Business Workforce Pipeline Act of 2022, would allow Small Business Development Centers (SBDCs) to assist small businesses with apprenticeship, pre-apprenticeship, and job training programs by disseminating information from the Department of Labor (DOL).
  • House Resolution 7664, the Support for Small Business and Vocational and Technical Education Act of 2022, would help small businesses meet their hiring needs. This legislation directs SBDCs and WBCs to help small businesses hire graduates of vocational and technical training programs, in addition to the existing services provided by SBDCs and WBCs. Additionally, this legislation supports vocational and technical education graduates by requiring SBDCs and WBCs to help them start a small business.
  • House Resolution 7670 on Transparency of the Women-Owned Small Business Program would establish reporting requirements for the WOSB program aimed at improving transparency, accountability, and ensuring that Congress receives the data necessary to track near these questions. This would require the SBA to provide information on the amount of contract dollars awarded under the program. It also includes the number of certifications issued, the number of program reviews in progress, the number of companies decertified, and the number of contracts wrongly awarded under industries or NAICS codes ineligible for the program. Any steps taken by the SBA to properly train agency staff are also part of monitoring.
  • House Resolution 5879 Hubzone Price Evaluation Preference Clarification Act of 2021 would seek to clarify the price evaluation preference, which allows HUBZone businesses to compete on equal footing, applies to orders.
  • House Resolution 7694 on Strengthening the Strengthening Outsourcing for Small Businesses Act of 2022 would encourage compliance with outsourcing plans by expanding the requirement that an agency must first consider the adherence to these plans when evaluating an Offeror’s past performance in all contract awards that include a subcontracting plan.

Fight against PPP and EIDL loan fraud

Bills that address PPP and EIDL loan fraud should further support the federal government’s efforts to combat and prevent pandemic-related fraud. Last year, the Attorney General created the COVID-19 Fraud Enforcement Task Force to provide additional resources to the Department of Justice and other agencies to combat fraud related to the pandemic.

Subsequently, Secret Service investigations into Unemployment Insurance and Paycheck Protection Program (PPP) loan fraud resulted in the seizure of more than $1.2 billion while recovering more than $2.3 billion in fraudulently obtained funds, and the unemployment insurance program.

Why it’s important to consolidate small businesses

Small businesses are considered the backbone of the American economy. And according to the Small Business Administration, they represent 99.9% of American businesses. This amounts to 32.5 million small businesses employing 61.2 million people, or 46.8% of American employees.

According to the National Federation of Independent Businesses (NFIB), the April 2022 Small Business Optimism Index remained at 93.2 and the fourth month in a row below the 48-year average of 98. The number of owners of small businesses expecting better trading conditions over the next six months fell one point to a net negative 50%, the lowest level recorded in the survey of 48-year-olds.

Among the challenges facing small businesses, inflation factors are high. Next are small business owners concerned about the tight labor market, vacancies remaining unfilled and uncertainties related to global conditions such as rising fuel prices and supply chain disruptions.

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