Assisting Small Businesses Not Fraudsters Act

What this does

This bill bars people convicted of certain financial crimes from getting SBA money. It amends the Small Business Act so that an associate of a small business who is finally convicted of a crime involving financial misconduct or a false statement tied to a covered loan or grant becomes ineligible for SBA financial assistance. A small business that has such a convicted associate is also cut off. The one carve-out is section 7(b) disaster assistance, which stays available. Covered loans and grants include PPP loans, certain COVID-era disaster loans, and Restaurant Revitalization and Shuttered Venue grants. An associate is defined to include officers, directors, key employees, and owners of more than 20 percent. Finally convicted means the conviction is no longer appealable or the appeal is finished. The prohibition does not reach any government contract or agreement entered before enactment.

House vote · 405-0

Democrats200–0

Republicans205–0

Independents0–0

How we know · 6 sourced claims

An associate of a small business who is finally convicted of a crime involving financial misconduct or a false statement with respect to a covered loan or grant becomes ineligible for SBA financial assistance other than section 7(b) assistance.Source: Sec. 2(a), new subsection (h)(1), Financial assistance prohibition
A small business that has such a convicted associate is also ineligible for SBA financial assistance other than section 7(b) assistance.Source: Sec. 2(a), new subsection (h)(2)
Covered loans or grants include PPP loans under paragraphs (36) or (37) of section 7(a), certain COVID-19 section 7(b) loans, Restaurant Revitalization grants under section 5003 of the American Rescue Plan Act, and Shuttered Venue grants under section 324 of the Economic Aid Act.Source: Sec. 2(a), new subsection (h)(3)(B), Covered loan or grant
An associate is defined to include an officer, director, key employee, or owner of more than 20 percent of the equity of the small business.Source: Sec. 2(a), new subsection (h)(3)(A), Associate
Finally convicted means the conviction is no longer appealable or the appeals process is completed.Source: Sec. 2(a), new subsection (h)(3)(C), Finally convicted
The prohibition does not apply to any contract or agreement entered into by the Government before enactment.Source: Sec. 2(b), Applicability

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Your representatives

How did your member vote on this?

House roll call

The full roll call

R200–0D195–0I1–0

Position

Party

State

Republicans

212

Democrats

208

Independents

YeaKevin KileyCA · District 3