President Biden signed a pair of bills into law that will give the Justice Department more time to investigate and prosecute those accused of committing fraud for Covid relief payments aimed at helping small businesses. The PPP (Paycheck Protection Program) and Bank Fraud Enforcement Act and the COVID-19 EIDL (Economic Injury Disaster Loan) Fraud Statute of Limitations Act establish 10-year statutes of limitations for criminal charges and civil enforcement. Both bills recently passed Congress with vast bipartisan support. The legislation is in response to the Small Business Administration identifying over $80 billion in potentially fraudulent EIDL loans and grants paid to non-eligible entities over the past two years.
The question that now remains is whether the federal government will redirect that $80 billion back to Main Street through reactivation of those loan programs.