Beat Bad Bureaucrats Act

Notwithstanding section 3716(c)(3)(A)(i) of title 31, United States Code, the Administrator may not, with respect to a covered loan, garnish payments made to the named individual of such covered loan under section 202 of the Social Security Act (42 U.S.C. 402 et seq.) for the purposes of repayment of such covered loan.

Subsection (a) does not apply if the Administrator determines that the named individual is not a victim of identity theft.

Not later than 30 days after the date of the enactment of this Act, the Administrator shall revise section 140.11(e)(1) of title 13, Code of Federal Regulations, to add to the list of notice requirements in such section information about how to report identity theft to the Administrator.

In this section:

The term Administrator means the Administrator of the Small Business Administration.

The term covered loan means—

(A) a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)); or

(B) a loan made under section 7(b) of such Act (15 U.S.C. 636(b)) in response to COVID–19 during the covered period (as defined in section 1110(a) of the CARES Act (15 U.S.C. 9009).

The term named individual means an individual—

(A) under whose name a covered loan was fraudulently made; and

(B) that has notified the Administrator, using the procedure posted on a public website of the Small Business Administration, that such individual is a victim of identity theft with respect to such covered loan.