Beat Bad Bureaucrats Act

Beat Bad Bureaucrats Act

This 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. 

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 (e.g., 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. 

Further, the SBA must post instructions on how to report identity theft on its public website and include them in the written notice provided to delinquent borrowers before garnishing their pay.