Sponsors
The bill creates a uniform 10-year statute of limitations that gives businesses and agencies clearer timing for COVID-relief fraud claims and may improve recoveries, but it also lengthens exposure to claims and raises compliance, litigation, and enforcement costs for small businesses and the government.
Small-business owners: Clear legal certainty that fraud prosecutions related to COVID relief must be brought within 10 years, reducing ambiguity about how long they can be subject to claims.
Federal agencies and employees (SBA, DOJ, Treasury): A uniform 10-year timeframe for investigations and enforcement improves planning, coordination, and resource allocation for fraud cases.
Taxpayers and the public: A consistent enforcement window can help prioritize prosecutions and potentially improve timing and effectiveness of fund recovery and accountability.
Small-business owners: A 10-year limitation increases litigation and compliance costs because businesses must preserve records longer and may need to defend older claims.
Small-business owners and other businesses: Allowing up to 10 years for claims creates long-tail enforcement uncertainty that complicates business planning, credit access, and insurance.
Taxpayers and federal agencies: Extending or formalizing a longer statute of limitations could increase the number of cases pursued over time, raising enforcement workload and fiscal costs for agencies and taxpayers.
Based on analysis of 2 sections of legislative text.
Creates a uniform 10-year statute of limitations for criminal and civil fraud actions tied to PPP, Second Draw PPP, EIDLs for COVID, SVOG, and Restaurant Revitalization funds.
Introduced March 27, 2025 by Joni Ernst · Last progress April 29, 2026
Establishes a single 10-year statute of limitations for criminal prosecutions and civil enforcement actions alleging fraud or related offenses tied to certain COVID-era small-business relief programs and grants. The 10-year period applies to fraud connected to Paycheck Protection Program loans (including Second Draw), Economic Injury Disaster Loans made for COVID-19 during the CARES Act period, the Shuttered Venue Operators Grant, and the Restaurant Revitalization program. The amendments add the 10-year limitation to the statutory provisions governing each program and specify that the clock runs from the date of the violation or conspiracy (and, for PPP provisions, from the date the offense was committed). The rule covers violations or conspiracies under enumerated federal fraud statutes in Title 18 and specified sections of Title 31.