Sponsors (3)
The bill protects named identity‑theft victims from Social Security garnishment and requires clearer SBA reporting notices to help victims seek relief, but it may shift some loan losses to taxpayers, hinder SBA collection and recovery efforts, and leave people who can't use the online reporting process unprotected.
Named identity-theft victims (e.g., seniors and low-income Social Security beneficiaries) are protected from having their Social Security benefits garnished to repay certain SBA loans, preserving income for living expenses.
Small-business owners and other potential victims will see clearer, timelier instructions from the SBA on how to report identity theft (SBA must add a clear notice within 30 days), making it easier to seek protections quickly.
Taxpayers and SBA loan programs could bear increased unrecovered loan losses if the SBA accepts identity-theft claims that later prove incorrect, raising government costs or program losses.
Limiting garnishment of Social Security benefits for alleged identity-theft cases could reduce the SBA's ability to collect on fraudulent or defaulted loans and may delay recovery efforts, complicating loan servicing and oversight.
Seniors and low-income individuals who are unaware of, unable to access, or unable to use the SBA's required public website reporting procedure may not receive immediate protection from garnishment, leaving vulnerable people exposed.
Based on analysis of 2 sections of legislative text.
Bars the SBA from garnishing Social Security to repay certain SBA loans when the named person reports identity theft, and requires SBA notice on how to report identity theft.
Introduced January 31, 2025 by Michael A. Rulli · Last progress January 31, 2025
Prohibits the Small Business Administration (SBA) from garnishing Social Security benefits to collect certain SBA loans when the person whose name was used to get the loan reports they are a victim of identity theft. The SBA can still garnish if it determines the named individual is not an identity-theft victim, and must add public notice information about how to report identity theft within 30 days of enactment.