Official Summaries

Assisting Small Businesses Not Fraudsters Act

This bill prohibits individuals convicted of certain financial crimes from receiving assistance from the Small Business Administration (SBA).

Specifically, the bill prohibits individuals who have been convicted of a crime involving financial misconduct or a false statement with respect to certain COVID-19 loans (e.g., Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants) from receiving any financial assistance from the SBA (other than a disaster loan).

The prohibition includes SBA assistance to small businesses that have an owner, officer, director, or key employee who has been convicted of such a crime.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 825 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
  1st Session
                                H. R. 825


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 25, 2025

 Received; read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 AN ACT


 
  To prohibit individuals convicted of defrauding the Government from 
 receiving any assistance from the Small Business Administration, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Small Businesses Not 
Fraudsters Act''.

SEC. 2. ASSISTANCE PROHIBITED AFTER FRAUD CONVICTION.

    (a) In General.--Section 16 of the Small Business Act (15 U.S.C. 
645) is amended by adding at the end the following new subsection:
    ``(h) Financial Assistance Prohibition.--
            ``(1) In general.--An associate of a small business concern 
        who is finally convicted of any crime involving or relating to 
        financial misconduct or a false statement with respect to a 
        covered loan or grant shall be ineligible to receive any 
        financial assistance from the Administrator, other than 
        financial assistance under section 7(b).
            ``(2) Business concerns.--A small business concern that has 
        as an associate an individual subject to paragraph (1) shall be 
        ineligible to receive any financial assistance from the 
        Administrator, other than financial assistance under section 
        7(b).
            ``(3) Definitions.--In this subsection:
                    ``(A) Associate.--The term `associate' means, with 
                respect to a small business concern--
                            ``(i) an officer, director, or owner of 
                        more than 20 percent of the equity of, or a key 
                        employee of, such small business concern;
                            ``(ii) any entity not less than 20 percent 
                        owned or controlled by one or more individuals 
                        referred to in clause (i); and
                            ``(iii) any other individual or entity in 
                        control of or controlled by such small business 
                        concern, except for a licensed small business 
                        investment company (as defined in section 
                        103(3) of the Small Business Investment Act of 
                        1958 (15 U.S.C. 662(3))).
                    ``(B) Covered loan or grant.--The term `covered 
                loan or grant' means--
                            ``(i) a loan made under--
                                    ``(I) paragraph (36) or (37) of 
                                subsection (a) of section 7; or
                                    ``(II) subsection (b) of such 
                                section in response to the COVID-19 
                                pandemic; or
                            ``(ii) a grant made under--
                                    ``(I) section 5003 of the American 
                                Rescue Plan Act of 2021 (15 U.S.C. 
                                9009c); or
                                    ``(II) section 324 of the Economic 
                                Aid to Hard-Hit Small Businesses, 
                                Nonprofits, and Venues Act (15 U.S.C. 
                                9009a).
                    ``(C) Finally convicted.--The term `finally 
                convicted' means, with respect to a person, that such 
                person has been convicted of an offense and such 
                conviction--
                            ``(i) has not been appealed and is no 
                        longer appealable because the time for taking 
                        an appeal has expired; or
                            ``(ii) has been appealed and the appeals 
                        process for such conviction is completed.''.
    (b) Applicability.--Subsection (h) of section 16 of the Small 
Business Act (15 U.S.C. 645), as added by subsection (a) of this Act, 
shall not apply to any contract or other agreement entered into by the 
Government prior to the date of the enactment of this Act.

            Passed the House of Representatives February 24, 2025.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.