COVID Fraud Transparency Act of 2025
The COVID Fraud Transparency Act of 2025 would require the Small Business Administration (SBA) Inspector General to produce quarterly reports detailing fraud related to certain COVID-19 loans. Starting within 60 days of enactment and every three months thereafter, the IG would submit a report to the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship. Each report would cover the number and total dollar amount of covered loans, the number of new and suspected fraud cases, the number of fraud cases resolved, and the types of fraud identified. The definition of "covered loans" includes certain SBA 7(a) loans (paragraphs 36 or 37) and 7(b) loans issued in response to COVID-19 during the CARES Act-covered period. The act would sunset two years after enactment and would not authorize additional funding.
Key Points
- 1Requires quarterly reporting by the SBA Inspector General on fraud related to COVID-19 SBA loans.
- 2Reports must cover: total covered loans and dollars, new/suspected fraud cases, resolved fraud cases, and the types of fraud.
- 3Defines covered loans as either certain 7(a) loans or COVID-19 related 7(b) loans during the CARES Act period.
- 4Reports go to both House and Senate small business committees, with timing: within 60 days of enactment and every three months thereafter.
- 5The act includes a sunset: all provisions terminate two years after enactment, and no new funds are authorized to carry it out (pay-as-you-go constraint).