# Plain Language Summary: RECLAIM Taxpayer Funds Act

During the COVID-19 pandemic, the government handed out millions of Paycheck Protection Program (PPP) loans to help small businesses keep their employees on payroll. Some businesses received more money than they actually needed and didn't use all of it. This bill creates a system to make it easier for those businesses to return the unused money and ensures the government properly tracks and collects it back.

Right now, there's no clear, standardized process for businesses to return unused PPP funds or for banks to handle those returns. This bill requires the Small Business Administration to create detailed instructions within 30 days that explain exactly how borrowers can send back unused money, what banks must do when they receive returned funds, and how banks should handle situations where they suspect fraud. Banks would be required to accept returns of unused PPP loans from borrowers or even from law enforcement if fraud is discovered, document everything carefully, and send the money back to the government. The bill also requires banks to periodically confirm they've reported and returned all unused PPP funds they've received.

The bill also establishes a tracking system so the government can monitor all returned PPP funds and prevent money from getting lost in the process. Any unused PPP money that gets returned goes back into the general Treasury fund. The bill doesn't cost taxpayers anything extra—the Small Business Administration will use money it already has to set up these systems and processes. Essentially, this is about creating clear rules and procedures to recover taxpayer money that businesses didn't actually use from the pandemic relief program.

RECLAIM Taxpayer Funds Act

Salazar, Maria Elvira

Returning Erroneous COVID Loans Addressing Illegal and Misappropriated Taxpayer Funds Act or the RECLAIM Taxpayer Funds Act This bill requires the Small Business Administration (SBA) to issue guidance for borrowers and lenders about returning any unused Paycheck Protection Program (PPP) loan amounts made to the borrower. The SBA must track the amounts of PPP loans returned to mitigate the risk of financial loss. The guidance must be issued not later than 30 days after the bill is enacted.