Sponsors (2)
The bill strengthens incentives, protections, and procedural rules to encourage reporting and speed recovery of COVID loan fraud, while trading off a share of recoveries to pay awards, adding administrative complexity, and creating potential gaps or risks around confidentiality and who gets compensated.
Whistleblowers who provide original information can receive monetary awards (10–15% of recoveries), creating a strong financial incentive to report COVID loan fraud and help recover funds.
Small-business owners and taxpayers benefit from increased deterrence and recovery of fraudulently obtained COVID loan funds, which helps preserve program funds for legitimate borrowers.
Whistleblowers (including federal employees) gain formal protections from retaliation and a legal process to seek remedies, reducing fear of reporting misconduct.
Taxpayers could see reduced net recoveries because 10–15% of collections are diverted to whistleblower awards instead of returning to the Treasury or COVID relief programs.
Creating and operating a new Office and tracking claims will add administrative costs and program complexity, potentially slowing recoveries and increasing overhead for the SBA and taxpayers.
Whistleblowers who materially contributed to the fraud or are later convicted may lose awards or be required to repay them, creating legal and financial risks that could deter some reporters.
Based on analysis of 3 sections of legislative text.
Creates an SBA Office of Whistleblower Awards to pay percentage-based awards from COVID-loan fraud recoveries and sets eligibility, IG contribution rules, appeals, and reporting requirements.
Introduced February 5, 2026 by Roger Williams · Last progress February 5, 2026
Creates a new Office of Whistleblower Awards inside the Small Business Administration to receive original tips about financial misconduct related to COVID-era loans and to pay awards from a Treasury fund when those tips lead to a final conviction, settlement, or plea in a qualifying COVID loan action. Awards are a percentage of government recoveries (10% for U.S. nationals/entities, 15% for foreign nationals/entities); the bill sets eligibility rules, appeal rights, reporting requirements, and a sunset tied to the final resolution of timely-filed COVID loan actions. Requires the SBA to issue implementing rules within six months and a narrower set of contribution-determination rules within three months directing the SBA Inspector General to state whether specific original information was the basis for an action (with a presumption against disclosure treated as non-basis). The Office may reduce or deny awards in certain circumstances and whistleblowers receive statutory anti-retaliation protections.