The United States Senate unanimously passed the SBA Fraud Enforcement Extension Act, led by Senate Small Business Committee Chair Sen. Joni Ernst (R-Iowa), on April 29. The bill extends the period for prosecuting individuals accused of defrauding Small Business Administration COVID relief programs.
The measure is intended to address concerns about widespread fraud during the pandemic and ensure that taxpayer dollars can be recovered. Ernst said that as of April 26, statutes of limitations began expiring, which could allow some alleged offenders to avoid prosecution for their actions related to pandemic relief funds.
“COVID fraudsters stole at least $200 billion, but time is now running out to hold every single one accountable. Starting this week, crooks who defrauded pandemic relief programs are getting away,” Ernst said in remarks calling for passage of her bill. She continued: “Both Republicans and Democrats should be working around the clock to send a clear message to fraudsters past, present, and future: there are real consequences to stealing from taxpayers.”
Ernst’s legislation would extend statutes of limitation by five years for those accused of defrauding specific programs such as the Shuttered Venue Operators Grant program and the Restaurant Revitalization Fund. She noted that Congress had previously extended similar deadlines for other SBA COVID relief initiatives with bipartisan support.
According to Ernst, investigations have already identified $57 billion in fraudulent activity and resulted in over 1,200 indictments related to these programs. The Small Business Administration is currently reviewing more than $3 billion in awards from the Restaurant Revitalization Fund; however, over $9.5 billion still requires examination.
Highlighting specific cases as examples of alleged abuse—including high-profile recipients such as rapper Chris Brown—Ernst said: “Make no mistake, when it comes to fraud and abuse, this is just the tip of the iceberg.”
Following passage of her bill, Ernst said: “This is a major win for taxpayers who had their hard-earned money stolen by fraudsters… Today’s action also sends a clear message to fraudsters: you will be held accountable.”
Ernst has served over 23 years in the Iowa Army National Guard and became Iowa’s first woman elected to federal office according to her official website. She grew up on a family farm in Montgomery County where she learned values like hard work and service according to her official website. Her office assists Iowans with matters involving Social Security, Medicare, veterans benefits, immigration issues and military affairs according to her official website. She holds degrees from Iowa State University and Columbus State University according to her official website.