SBA Fraud Enforcement Extension Act
- Bill Number
- H.R. 4495
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Passed House
- Latest Action
- 2025-12-02: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 281.
- Last Updated
- 2026-06-11T23:26:40Z
AI-Generated Summary
Purpose
The SBA Fraud Enforcement Extension Act (H.R. 4495) aims to strengthen accountability for fraud in specific COVID-19 relief programs administered by the Small Business Administration (SBA). It extends the time limit for government investigations and prosecutions of fraudulent activities related to these programs, helping to prevent the misuse of taxpayer-funded emergency aid.
Key Provisions
- Extension for Shuttered Venue Operators Grants: Amends Section 324 of the Consolidated Appropriations Act, 2021 (which provided grants to entertainment venues affected by the pandemic) to add a 10-year statute of limitations (SOL) for filing criminal or civil actions related to fraud. This applies to violations or conspiracies involving specific federal crimes, such as:
- Conspiracy to defraud the U.S. (18 U.S.C. § 371).
- Theft of government property (18 U.S.C. § 641).
- False statements (18 U.S.C. § 1001).
- Aggravated identity theft (18 U.S.C. § 1028A).
- Fraud with access devices (18 U.S.C. § 1029).
- Mail fraud (18 U.S.C. § 1341), wire fraud (18 U.S.C. § 1343), and healthcare fraud (18 U.S.C. § 1349).
- Money laundering (18 U.S.C. §§ 1956 and 1957).
- False Claims Act violations (31 U.S.C. § 3729) and civil remedies for program fraud (31 U.S.C. § 3802).
- Extension for Restaurant Revitalization Grants: Amends Section 5003 of the American Rescue Plan Act of 2021 (which supported restaurants hit by the pandemic) with the same 10-year SOL for the identical list of fraud-related crimes.
- The SOL starts from the date of the violation or conspiracy and overrides any shorter time limits in other laws.
Significant Changes to Existing Law
- Previously, statutes of limitations for these fraud crimes were generally 5 years (under 18 U.S.C. § 3282 for most federal crimes) or shorter for civil actions. This bill introduces a uniform 10-year window specifically for fraud in these two SBA programs, allowing more time for detection and prosecution after the programs ended.
- It targets only fraud tied to grant misuse, not other aspects of the programs.
Potential Impacts
- On Government Agencies: Enhances the ability of the Department of Justice (DOJ) and SBA to pursue and recover misappropriated funds, potentially leading to more successful fraud recoveries and deterring future abuse in emergency aid programs.
- On Citizens and Businesses: Grant recipients (e.g., venue owners and restaurant operators) who engaged in fraud face longer exposure to legal action, which could result in delayed uncertainty but promotes fairer use of public funds. Honest recipients are unaffected.
- On International Relations: No direct impact, as the bill focuses on domestic U.S. fraud enforcement.
Main Stakeholders Affected
- Government Entities: SBA (program administrator), DOJ (for prosecutions), and the Department of the Treasury (involved in fraud recovery).
- Businesses and Individuals: Recipients of Shuttered Venue Operators and Restaurant Revitalization grants, including theaters, music venues, restaurants, and their owners—particularly those suspected of fraud.
- Taxpayers: Indirectly benefit through stronger protections against waste of federal relief funds.
Notable Legal, Constitutional, or Political Implications
- Legal: The 10-year SOL is a procedural extension that does not alter the underlying crimes but could increase litigation volume in federal courts. It applies retroactively to past violations, which is permissible for non-criminalizing changes but may face challenges if seen as unfairly extending liability (though statutes of limitations are not constitutionally protected rights).
- Constitutional: Aligns with Congress's authority to regulate federal spending and fraud (under Article I), without infringing on due process, as it provides a clear, extended timeframe rather than indefinite prosecution.
- Political: Reinforces bipartisan efforts to combat pandemic-era fraud (estimated at billions in losses), signaling a commitment to fiscal oversight in future crises, but could spark debate over retroactivity and the burden on small businesses.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Conaway, Herbert C. [D-NJ-3], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2025-12-02: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 281.
- 2025-12-01: Motion to reconsider laid on the table Agreed to without objection.
- 2025-12-01: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H4914-4916)
- 2025-12-01: Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H4914-4916)
- 2025-12-01: DEBATE - The House proceeded with forty minutes of debate on H.R. 4495.
- 2025-12-01: Considered under suspension of the rules. (consideration: CR H4914-4916)
- 2025-12-01: Mr. Williams (TX) moved to suspend the rules and pass the bill.
- 2025-08-15: Placed on the Union Calendar, Calendar No. 184.
- 2025-08-15: Reported by the Committee on Small Business. H. Rept. 119-226.
- 2025-08-15: Reported by the Committee on Small Business. H. Rept. 119-226.
- 2025-07-22: Ordered to be Reported by the Yeas and Nays: 23 - 0.
- 2025-07-22: Committee Consideration and Mark-up Session Held
- 2025-07-17: Referred to the House Committee on Small Business.
- 2025-07-17: Introduced in House
- 2025-07-17: Introduced in House
Bill Versions
- SBA Fraud Enforcement Extension Act — issued 2025-12-01 — PDF (4 pages)
- SBA Fraud Enforcement Extension Act — issued 2025-07-17 — PDF (2 pages)
- SBA Fraud Enforcement Extension Act — issued 2025-12-02 — PDF (4 pages)
- SBA Fraud Enforcement Extension Act — issued 2025-08-15 — PDF (6 pages)