Bill Overview
Title: To require the return of amounts loaned under the Paycheck Protection Program of the Small Business Administration used for illegal activities, and for other purposes.
Description: This bill requires the Small Business Administration to ensure that any loan amounts under the Paycheck Protection Program that are used for an illegal activity are returned to the U.S. Treasury.
Sponsors: Rep. Mullin, Markwayne [R-OK-2]
Target Audience
Population: Business Entities Using PPP Funds for Illegal Activities
Estimated Size: 10000
- The Paycheck Protection Program (PPP) was established to aid small businesses in maintaining payroll during the COVID-19 pandemic. Loans potentially used illegally might involve a broad range of businesses across the U.S.
- Loan recipients that used PPP funds for purposes not allowed under the program guidelines and potentially involved in illegal activities will be directly impacted as they will be required to return the funds.
- Businesses across various industries, particularly where there might have been higher risk or scrutiny of fund use, could be affected.
Reasoning
- The target population includes businesses that have potentially misused funds from the Paycheck Protection Program, a subset of the many that received such loans during the pandemic.
- Given the resources and focus of the OIG, estimating 10,000 businesses affected means the policy must efficiently target clear cases of misuse to stay within budgetary constraints.
- The budget allows for investigation and recovery efforts, but must also accommodate potential legal costs and administrative expenses associated with recouping funds.
- Some individuals within these businesses might not experience direct personal wellbeing impacts (e.g., rank-and-file employees), while owners or financial managers could experience financial strain or stress.
Simulated Interviews
Restaurant Owner (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I understand the need for oversight, but the funds helped keep our doors open even if not every dollar was spent perfectly.
- Returning funds now would mean taking out a new loan just to cover that cost.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Tech Startup Manager (Austin, TX)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 2/20
Statement of Opinion:
- We used those funds to stay operational and pivot in uncertain times, not on shady dealings.
- The policy seems fair if it helps reinforce responsible use of public funds.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Retired Auditor (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- A return policy is necessary to safeguard taxpayer money.
- My role involves advising on the best practices for recovery without crippling businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Freelance Designer (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- I wasn't involved in the financial side, but tightening policies might offer a sense of fairness amidst uncertainties.
- As an employee, I would expect the company's transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Entertainment Producer (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- I understand the aim, and it doesn't look good on my part, but circumstances were dire.
- The policy seems a necessary step but may lead to unexpected hardships for some businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Healthcare Administrator (Houston, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- Our practice adhered strictly to policy—oversight is welcomed for transparency.
- I support policies that clamp down on malpractice as they uphold faith in these programs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Non-profit Coordinator (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- The intent was always community-centered despite financial ambiguities.
- This policy underscores the necessity of clarity in such financial assistance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retail Store Manager (Denver, CO)
Age: 36 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Our store used these funds properly, and policies like this further ensure public trust.
- Most small stores like ours were very cautious given the repercussions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Construction Business Owner (Phoenix, AZ)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Complexity in fund management during crisis times meant difficult decisions.
- This policy is an unfortunate necessity but could spell financial stress if not handled with firm understanding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Academic Researcher (Boston, MA)
Age: 62 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- This policy will be useful for framing future public funding measures.
- It's important such policies do not become overly punitive and turn away future program participation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $30000000 (Low: $10000000, High: $50000000)
Year 2: $20000000 (Low: $5000000, High: $40000000)
Year 3: $10000000 (Low: $5000000, High: $20000000)
Year 5: $5000000 (Low: $2000000, High: $10000000)
Year 10: $2000000 (Low: $1000000, High: $5000000)
Year 100: $500000 (Low: $250000, High: $1000000)
Key Considerations
- The effectiveness of this policy relies heavily on the ability of the SBA to enforce compliance and recover misused funds.
- Coordination with legal entities at state and federal levels is crucial to deal with illegal activities effectively.
- Public perception and confidence in government programs might improve with the implementation of stringent recovery measures.
- Consideration needs to be given to the opportunity costs and whether resources allocated here may limit efforts elsewhere.