BGOV Bill Summary: H.R. 5427, Banning Pandemic Loan Fraudsters

Individuals convicted of defrauding pandemic small business aid programs would be barred from receiving financial assistance from the Small Business Administration under H.R. 5427.

SBA handed out more than $200 billion in potentially fraudulent pandemic loans, according to a June 2023 report from the agency’s inspector general, meaning at least 17% of funds meant to boost struggling businesses went to potential fraudsters. SBA estimated the amount of likely fraud reached about $36 billion.

The report asserted that fraud stemmed from the SBA’s decision to soften anti-fraud controls to swiftly deliver funds. The SBA noted that 86% of likely fraud ...