Beat Bad Bureaucrats Act
Beat Bad Bureaucrats Act would shield certain people from having their Social Security benefits garnished to repay Small Business Administration (SBA) loans. Specifically, if a loan is a “covered loan” (certain 7(a) loans or COVID-19-era 7(b) loans) and the named borrower is a victim of identity theft, the SBA Administrator could not garnish that person’s Social Security payments to repay the loan. The bill requires a quick regulatory update to explain how individuals can report identity theft to the SBA, and it allows an exception if the Administrator determines the named individual is not a victim. The named individual must be the person under whose name the loan was fraudulently made and must notify the SBA using a public website process. Sponsors noted in the measure are Rep. Rulli (with Rep. Graves and Rep. Webster of Florida) and the bill is labeled as introduced. The act would modify how certain SBA debts intersect with Social Security garnishment and imposes a specific reporting requirement for identity theft.
Key Points
- 1Prohibits SBA Administrator from garnishing Social Security benefits to repay a covered SBA loan for individuals who are victims of identity theft and are the named borrower on the loan.
- 2An exception exists if the Administrator determines the named individual is not a victim of identity theft.
- 3Requires the SBA to revise the regulatory text within 30 days of enactment to add information on how to report identity theft to the Administrator.
- 4Defines a “covered loan” as either (A) certain SBA 7(a) loans or (B) SBA 7(b) COVID-19 loans during the CARES Act-covered period.
- 5Defines a “named individual” as the person under whose name the loan was fraudulently made and who has notified the SBA (via a public website posting) that they are an identity theft victim.