Sponsors
The bill extends fraud enforcement and civil liability windows for COVID-era small-business relief to 10 years—boosting the government’s ability to recover funds and deter fraud while imposing longer legal exposure and higher administrative costs for businesses and agencies.
Taxpayers and federal oversight agencies: Authorities can pursue civil and related fraud claims tied to COVID-era SBA relief for up to 10 years, increasing the chance of recovering misspent relief funds and deterring fraud.
Recipients of Shuttered Venue, Restaurant Revitalization, EIDL, and PPP programs (small-business owners): Gain clearer statutory timing for enforcement actions, reducing disputes over timeliness and lowering the risk of surprise late prosecutions or retroactive uncertainty.
Prosecutors and private relators: A longer 10-year limitation period reduces procedural timeliness disputes, helping preserve complex pandemic-era fraud cases that otherwise might be dismissed on timing grounds.
Small-business owners: Face up to 10 years of exposure to civil or criminal liability for COVID-era relief, increasing long-term legal uncertainty and potential defense costs.
Small-business owners: Defending against claims brought many years later may be substantially harder because older documentation and witnesses can be lost or degraded, making litigation more burdensome and less fair.
Taxpayers and federal agencies: Extending enforcement windows increases administrative and fiscal burdens on DOJ, SBA, and oversight offices to retain records and sustain investigations for a decade.
Based on analysis of 2 sections of legislative text.
Extends the statute of limitations to 10 years for criminal prosecutions and civil actions alleging fraud tied to certain COVID-era SBA programs and grants.
Introduced March 27, 2025 by Joni Ernst · Last progress May 4, 2026
Sets a 10-year statute of limitations for criminal prosecutions and civil enforcement actions alleging fraud or related crimes involving certain COVID-era Small Business Administration programs and grants. It amends the Small Business Act and specific SBA program statutes so prosecutions or civil claims for fraud tied to PPP, Second Draw PPP, EIDL (CARES Act period), the Restaurant Revitalization Fund, and Shuttered Venue Operators Grants must be filed within 10 years of the offense or conspiracy.