During the COVID-19 pandemic, scammers used people's identities to fraudulently obtain government loans meant to help businesses and individuals. This bill protects those identity theft victims from having their Social Security checks taken to pay back loans they never actually received. If someone's name was stolen and used to get a COVID disaster loan or Paycheck Protection Program loan between early 2020 and the end of 2021, the Small Business Administration can't garnish their Social Security payments—as long as they've reported the identity theft to the SBA. The SBA still has to verify that you're actually a victim of identity theft before this protection kicks in. The bill also requires the SBA to make it easier for people to report this kind of fraud by posting clear instructions on their website and including them in the notices they send to people with delinquent loans. Essentially, this prevents innocent people from being punished financially for crimes committed against them.

Beat Bad Bureaucrats Act

Rulli, Michael A.

Beat Bad Bureaucrats ActThis bill prohibits the Small Business Administration (SBA) from garnishing Social Security payments to victims of identity theft on account of certain delinquent SBA loans obtained fraudulently during the COVID-19 pandemic.&nbsp;Specifically, the SBA may not garnish an individual’s Social Security payments related to a covered loan if (1) the individual’s name was used to fraudulently obtain the loan, and (2) the individual has reported the identity theft to the SBA. Under the bill, covered loans are Disaster Loans granted in response to COVID-19 between January 31, 2020, and December 31, 2021&nbsp;(e.g.,&nbsp;Economic Injury Disaster Loans) and loans granted under the Paycheck Protection Program. The prohibition on garnishment does not apply if the SBA determines that an individual is not a victim of identity theft.&nbsp;Further, the SBA must post instructions on how to report identity theft on its public&nbsp;website and include them in the written notice provided to delinquent borrowers before garnishing their pay.&nbsp;