This bill stops the Small Business Administration (SBA) from taking money out of a person’s Social Security checks if their identity was stolen and used to get certain SBA loans. The SBA can only garnish benefits if it decides the person is not actually a victim. The SBA must also update its rules and notices to explain how to report identity theft, including posting clear instructions online and in letters sent before any garnishment.

Key points:

• Who is affected: People on Social Security whose names were used without permission to get SBA loans.
• What changes: The SBA may not garnish their Social Security to repay those loans; it must share how to report identity theft in notices and on its website, and update its rules within 30 days of the law taking effect.
• Which loans: COVID-19 Disaster Loans made between January 31, 2020, and December 31, 2021 (such as Economic Injury Disaster Loans), and Paycheck Protection Program loans.
• Exception: If the SBA finds the person is not a victim of identity theft, normal collection can continue.