II
119THCONGRESS
1
STSESSION S. 1047
To prohibit individuals convicted of defrauding the Government from receiving
any assistance from the Small Business Administration, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
MARCH13, 2025
Mr. Y
OUNGintroduced the following bill; which was read twice and referred
to the Committee on Small Business and Entrepreneurship
A BILL
To prohibit individuals convicted of defrauding the Govern-
ment from receiving any assistance from the Small Busi-
ness Administration, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Assisting Small Busi-4
nesses Not Fraudsters Act’’. 5
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•S 1047 IS
SEC. 2. ASSISTANCE PROHIBITED AFTER FRAUD CONVIC-1
TION. 2
(a) I
NGENERAL.—Section 16 of the Small Business 3
Act (15 U.S.C. 645) is amended by adding at the end the 4
following new subsection: 5
‘‘(h) F
INANCIALASSISTANCEPROHIBITION.— 6
‘‘(1) I
N GENERAL.—An associate of a small 7
business concern who is finally convicted of any 8
crime involving or relating to financial misconduct or 9
a false statement with respect to a covered loan or 10
grant shall be ineligible to receive any financial as-11
sistance from the Administrator, other than financial 12
assistance under section 7(b). 13
‘‘(2) B
USINESS CONCERNS.—A small business 14
concern that has as an associate an individual sub-15
ject to paragraph (1) shall be ineligible to receive 16
any financial assistance from the Administrator, 17
other than financial assistance under section 7(b). 18
‘‘(3) D
EFINITIONS.—In this subsection: 19
‘‘(A) A
SSOCIATE.—The term ‘associate’ 20
means, with respect to a small business con-21
cern— 22
‘‘(i) an officer, director, or owner of 23
more than 20 percent of the equity of, or 24
a key employee of, such small business 25
concern; 26
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•S 1047 IS
‘‘(ii) any entity not less than 20 per-1
cent owned or controlled by one or more 2
individuals referred to in clause (i); and 3
‘‘(iii) any other individual or entity in 4
control of or controlled by such small busi-5
ness concern, except for a licensed small 6
business investment company (as defined 7
in section 103(3) of the Small Business In-8
vestment Act of 1958 (15 U.S.C. 662(3))). 9
‘‘(B) C
OVERED LOAN OR GRANT .—The 10
term ‘covered loan or grant’ means— 11
‘‘(i) a loan made under— 12
‘‘(I) paragraph (36) or (37) of 13
section 7(a); or 14
‘‘(II) section 7(b) in response to 15
the COVID–19 pandemic; or 16
‘‘(ii) a grant made under— 17
‘‘(I) section 5003 of the Amer-18
ican Rescue Plan Act of 2021 (15 19
U.S.C. 9009c); or 20
‘‘(II) section 324 of the Eco-21
nomic Aid to Hard-Hit Small Busi-22
nesses, Nonprofits, and Venues Act 23
(15 U.S.C. 9009a). 24
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•S 1047 IS
‘‘(C) FINALLY CONVICTED.—The term ‘fi-1
nally convicted’ means, with respect to a per-2
son, that such person has been convicted of an 3
offense and such conviction— 4
‘‘(i) has not been appealed and is no 5
longer appealable because the time for tak-6
ing an appeal has expired; or 7
‘‘(ii) has been appealed and the ap-8
peals process for such conviction is com-9
pleted.’’. 10
(b) A
PPLICABILITY.—Subsection (h) of section 16 of 11
the Small Business Act (15 U.S.C. 645), as added by sub-12
section (a) of this section, shall not apply to any contract 13
or other agreement entered into by the Government prior 14
to the date of the enactment of this Act. 15
Æ
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