CURTIS-BACKED BILL PURSUING $200 BILLION IN COVID FRAUD ADVANCES2 min read

Complete COVID Collections Act passes out of Senate Committee on Small Business and Entrepreneurship

Washington, D.C. – The U.S. Senate Committee on Small Business and Entrepreneurship passed the Complete COVID Collections Act, legislation cosponsored by Senator John Curtis (R-UT) and led by Committee Chair Joni Ernst (R-IA) to extend the life of the watchdog tasked with tracking down criminals who stole COVID relief funds designed for small businesses. The senators introduced the bill after the Special Inspector General for Pandemic Recovery (SIGPR) warned that its authority was expiring and estimated that criminals would evade consequences for stealing more than $200 billion. Other cosponsors of the legislation include Senators Todd Young (R-IN), Marsha Blackburn (R-TN) James Lankford (R-OK), Josh Hawley (R-MO), and Eric Schmitt (R-MO).

“Family-owned businesses in Utah played by the rules and used COVID-19 relief funds as intended, but bad actors exploited the system and defrauded taxpayers,” said Senator Curtis. “By extending oversight authority over these programs, our legislation strengthens enforcement efforts and holds criminals accountable for stealing from the American people. I’m proud to see our bill pass out of the Small Business Committee.”

“I will not allow fraudsters to get away with stealing hundreds of billions of dollars from taxpayers,” said Senator Ernst. “We are going to recoup every cent and end the cycle in Washington of shrugging off a few billion here and a few hundred million there. That irresponsible mindset is why the federal government is more than $36 trillion in debt. I’m proud to lead this step forward to treat tax dollars like a family treats its budget instead of like a bottomless slush fund.”

“Programs designed to provide relief to our small businesses were repeatedly taken advantage of, leaving small businesses hurting and taxpayers on the hook,” said Senator Young. “I’m glad to see this effort to recover taxpayer dollars and protect Americans from fraud and abuse pass out of committee. I look forward to voting for this bill on the Senate floor.”

“During the pandemic, small business owners in need of financial assistance were turned away because criminals, gang members, and drug traffickers stole money from the relief program,” said Senator Blackburn. “This legislation would help ensure we recoup every penny of funding that was wrongly awarded to criminals who gamed the system.”

Background:

While the Small Business Administration administered relief programs on a “first come, first served” basis, funds were quickly depleted, leaving many eligible businesses without assistance. Meanwhile, felons, gang members, and drug traffickers exploited the system for personal gain. In some cases, fraudsters uploaded images of Barbie dolls as photo identification on SBA loan applications, which were subsequently approved. One alleged fraudster secured $8 million.

The full text of the bill can be found here.