SBA Fraud Enforcement Extension Act
- Bill Number
- S. 1199
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Passed Senate
- Latest Action
- 2026-05-04: Held at the desk.
- Last Updated
- 2026-05-05T08:05:39Z
AI-Generated Summary
Purpose
The SBA Fraud Enforcement Extension Act (S. 1199) aims to extend the time limit for prosecuting fraud related to two COVID-19 relief programs administered by the Small Business Administration (SBA): the Shuttered Venue Operators Grant (for live entertainment venues) and the Restaurant Revitalization Fund (for restaurants). It also requires regular reporting to Congress on enforcement efforts.
Key Provisions
- Extended Statute of Limitations:
- Adds a 10-year window (from the date of violation) for criminal prosecutions or civil enforcement actions involving specific fraud crimes under these programs.
- Covered crimes include conspiracy (18 U.S.C. § 371), theft of government property (§ 641), false statements (§ 1001), identity theft (§ 1028A), access device fraud (§ 1029), mail fraud (§ 1341), wire fraud (§ 1343), bank fraud (§ 1349), money laundering (§§ 1956, 1957), and False Claims Act violations (31 U.S.C. §§ 3729, 3802).
- Applies to the Shuttered Venue Operators program (15 U.S.C. § 9009a) and Restaurant Revitalization program (15 U.S.C. § 9009c).
- Reporting Requirements:
- The Attorney General must submit reports to Congress every 90 days for 5 years (starting 90 days after enactment).
- Reports cover Department of Justice (DOJ) activities, including:
- Total investigations, prosecutions, dollar amounts recovered, and referrals (with sources).
- Program-specific data: investigations/prosecutions by state/territory (based on applicant address), referral sources (DOJ vs. others like agency Inspectors General), and outcomes (e.g., prosecution, declination).
Significant Changes to Existing Law
- Lengthens Time Limits: Overrides shorter default statutes of limitations (typically 5 years for most federal crimes) to 10 years specifically for fraud in these two programs, allowing more time for complex investigations.
- Adds Oversight: Introduces mandatory, detailed DOJ reporting not previously required for these programs.
Potential Impacts
- Government Agencies: Enhances DOJ's ability to pursue fraud cases, potentially increasing recoveries of misused funds (estimated billions lost to pandemic fraud). Increases administrative burden on DOJ for reporting.
- Citizens: Deters fraud by extending prosecution risks for grant recipients who lied or stole; no direct impact on honest businesses.
- International Relations: None apparent.
Main Stakeholders Affected
- Department of Justice (DOJ): Leads investigations, prosecutions, and reporting.
- Congress: Receives oversight reports to monitor enforcement.
- SBA and Inspectors General: Indirectly involved via program administration and fraud referrals.
- Grant Recipients: Live venues and restaurants that received funds—fraud perpetrators face longer liability; legitimate ones gain assurance of stronger protections.
- Taxpayers: Potential benefit from recovered funds reducing federal losses.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens anti-fraud enforcement without altering underlying crimes; "notwithstanding any other provision of law" ensures the 10-year limit prevails over conflicts. Statute of limitations is the deadline for filing charges, balancing enforcement with fairness.
- Constitutional: No apparent issues; extensions for specific frauds are common and upheld if reasonable.
- Political: Promotes accountability for pandemic relief spending, likely appealing across parties amid concerns over widespread fraud (e.g., billions in questionable claims). Passed Senate in 119th Congress (2d Session).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-04: Held at the desk.
- 2026-05-04: Received in the House.
- 2026-05-01: Message on Senate action sent to the House.
- 2026-04-29: Passed Senate with an amendment by Unanimous Consent. (text of amendment in the nature of a substitute: CR S2108)
- 2026-04-29: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
- 2026-04-29: The committee substitute withdrawn by Unanimous Consent.
- 2026-04-29: Measure laid before Senate by unanimous consent. (consideration: CR S2107-2108)
- 2026-03-18: Committee on Small Business and Entrepreneurship. Hearings held.
- 2026-02-25: Committee on Small Business and Entrepreneurship. Hearings held.
- 2025-12-10: Committee on Small Business and Entrepreneurship. Hearings held.
- 2025-07-30: Placed on Senate Legislative Calendar under General Orders. Calendar No. 134.
- 2025-07-30: Committee on Small Business and Entrepreneurship. Reported by Senator Ernst with an amendment in the nature of a substitute. Without written report.
- 2025-07-30: Committee on Small Business and Entrepreneurship. Reported by Senator Ernst with an amendment in the nature of a substitute. Without written report.
- 2025-07-16: Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 2025-03-27: Read twice and referred to the Committee on Small Business and Entrepreneurship.
Bill Versions
- SBA Fraud Enforcement Extension Act — issued 2026-04-29 — PDF (6 pages)
- SBA Fraud Enforcement Extension Act — issued 2025-03-27 — PDF (2 pages)
- SBA Fraud Enforcement Extension Act — issued 2025-07-30 — PDF (8 pages)