Senator Ernst Takes Aim at COVID-19 Loan Fraud, Seeking $200 Billion Recovery and Accountability

Senator Ernst Demands Accountability for COVID-19 Loan Fraud

Senator Joni Ernst (R-IA) has raised concerns about the alarming rate of defaults on COVID-era Paycheck Protection Program (PPP) loans, urging action to hold fraudsters accountable. In a letter to Senator Ernst, Inspector General for Pandemic Recovery (SIGPR) Brian Miller reported that the loan programs had incurred losses of $1.27 billion as of November 2024, with defaults snowballing since initial payments became due in July 2023.

Senator Ernst expressed concern that dishonest loan applicants could potentially get away with $200 billion in COVID-19 relief fraud if her proposed bill is not passed. "Con artists took advantage of small businesses' pain during COVID to defraud government programs designed to help hardworking Americans," she stated. "While we are $36 trillion in debt, we especially cannot afford to leave more than $200 billion floating around, especially in the hands of fraudsters."

To address this issue, Senator Ernst has drafted the Complete COVID Collections Act. This bill would extend the authorization of the SIGPR through 2030 and expand its jurisdiction to cover other SBA COVID-related programs. Additionally, it would direct the Treasury to enforce collection of loans under $100,000 as stringently as larger loans, and require the Justice Department to provide regular reports to Congress on activities related to pandemic-centric programs.

Marsha Blackburn (TN), Todd Young (IN), James Lankford (OK), and John Curtis (UT). With bipartisan support, this legislation aims to ensure that taxpayers' money is recovered and those responsible for fraud are held accountable.