Sec. 203. Disaster loan program oversight
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With respect to loans made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), other than loans made pursuant to section 202(g)(2) of this Act, the Administrator shall take such action as necessary to— establish or strengthen controls to ensure that loan proceeds are deposited in a legitimate account of a borrower; ensure that any modification of a loan application after lender approval of such loan is reviewed by an employee of the Administration; establish or strengthen controls to— ensure that multiple loans are provided only to eligible borrowers; and prevent the erroneous duplication of loans, including by establishing a system to verify the identity of a borrower using photo identification; verify the applicant is a legitimate borrower with the appropriate State or local agency through tax returns, documentation relating to incorporation or status as a nonprofit organization, or another method; ensure that two employees of the Administration approve each application for such loans and eliminate any processes of the Administration that allow for simultaneous approval of multiple loan applications; require an individual employee of the Administration to contact applicants who submit multiple loan applications from the same Internet Protocol addresses, email addresses, or physical addresses, or with the same bank account numbers, to verify eligibility of such applicants; ensure that such borrower is not included on the Do Not Pay List of the Department of the Treasury (as described under section 3354 of title 31, United States Code); prevent duplicate loan applications with the same employer identification number or social security number; and establish a system to prevent disbursement of such loans to applicants that submit more than one loan application with the same employer identification number, social security number, email addresses, physical addresses, or bank account number, or from the same Internet Protocol address.
This subsection shall terminate on the date that is three years after the date of the enactment of this Act. Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting after paragraph
(15)the following new paragraph: Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a plan for auditing covered loans, including— the policies and procedures that the Administrator shall use to conduct audits of such covered loans; and the metrics that the Administrator shall use to determine which such covered loans to audit. Not later than 30 days after the date on which the Administrator submits the plan required by subparagraph (A), and each month thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the audit activities of the Administration with respect to covered loans under this subsection, including— the number of active reviews and audits; the results of completed reviews and audits; and any substantial changes to the plan submitted under subparagraph (A). In this paragraph, the term covered loan means a loan made— under this subsection; and pursuant to section 202(g)(2) of the IMPROVE the SBA Act; or not earlier than the date that is three years after the date of the enactment of this paragraph. .
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Sec. 203
Disaster loan program oversight
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