This bill amends the Small Business Act to create a new Office of Whistleblower Awards within the Small Business Administration, aimed at uncovering fraud related to COVID-19 pandemic relief loans. Under the program, individuals who report original, previously unknown information about financial misconduct or fraud by recipients of SBA COVID loan assistance can receive monetary awards if their tips lead to a criminal conviction, settlement, or plea agreement. Awards would range from 10 percent of recovered funds for domestic wrongdoers to 15 percent for foreign nationals or foreign entities, paid from a new revolving Whistleblower Award Fund financed by penalties and recoveries from convicted fraudsters, who also face an added civil penalty equal to 30 percent of the fraudulent loan amount. The bill includes protections against retaliation for whistleblowers, an appeals process for award determinations, and requires the SBA to issue implementing rules within three to six months of enactment and report annually to Congress on the program's results. The whistleblower program is designed to sunset once all COVID-related loan fraud cases have been fully resolved through conviction or completed appeals.
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