S.68 - Complete COVID Collections Act (119th Congress)
Summary
The Complete COVID Collections Act aims to ensure the collection of loans made to small businesses related to COVID-19 relief. It mandates the referral of claims under $100,000 to the Department of the Treasury and extends the oversight of the Special Inspector General for Pandemic Recovery. The bill also harmonizes fraud enforcement, setting a 10-year statute of limitations for criminal and civil actions related to COVID-19 relief programs.
Expected Effects
This act will likely increase the recovery of funds disbursed during the COVID-19 pandemic. It could also deter future fraud by extending the period during which legal action can be taken. Small businesses may face increased pressure to repay loans.
Potential Benefits
- Increased recovery of taxpayer money disbursed as COVID-19 relief.
- Enhanced fraud detection and prosecution due to extended statute of limitations.
- Improved transparency through mandated reporting by the Administrator and the Attorney General.
- Strengthened oversight by the Special Inspector General for Pandemic Recovery.
- Ensures consistent enforcement across different COVID-19 relief programs.
Potential Disadvantages
- Increased pressure on small businesses to repay loans, potentially hindering their recovery.
- Potential for overzealous collection efforts that could harm viable businesses.
- Administrative burden on the Department of the Treasury and the Small Business Administration.
- Possible delays in processing loan forgiveness applications due to increased scrutiny.
- Risk of disproportionately impacting small businesses in economically disadvantaged communities.
Most Disadvantaged Areas:
Constitutional Alignment
The Act appears to align with the Constitution's Article I, Section 8, which grants Congress the power to collect taxes and pay debts. The provisions related to fraud enforcement are consistent with the government's inherent power to prosecute crimes. The reporting requirements ensure transparency and accountability, which are essential for responsible governance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).