H.R. 886: Beat Bad Bureaucrats Act

This bill, known as the Beat Bad Bureaucrats Act, aims to protect certain individuals from having their Social Security benefits garnished in cases related to identity theft linked with specific Small Business Administration (SBA) loans.

Key Provisions of the Bill

1. Protection from Garnishment

The bill states that the Administrator of the Small Business Administration cannot garnish Social Security payments from individuals who are victims of identity theft pertaining to specific loans. This means that if someone has taken out a covered loan fraudulently in their name, their Social Security benefits cannot be used by the SBA to recover the debt linked to that fraudulent loan.

2. Exceptions

There is an exception to this rule: if the Administrator determines that the individual in question is not a victim of identity theft, then garnishment can proceed.

3. Requirement for Information Update

Within 30 days of the bill's enactment, the SBA Administrator is required to update a specific regulation to include information on how individuals can report identity theft. This aims to enhance transparency and assist victims in managing their situations.

4. Definitions

The bill provides definitions for several key terms:

• Administrator: Refers specifically to the Administrator of the Small Business Administration.
• Covered Loan: Includes loans made under particular sections of the Small Business Act, particularly those for small businesses as well as COVID-19 response loans granted during a defined period.
• Named Individual: An individual under whose name a loan was fraudulently taken out and who has reported the identity theft to the SBA using designated procedures.

Relevant Companies

None found