What does Preamble of Assisting Small Businesses Not Fraudsters Act do?

This bill, formally titled 'To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes,' aims to restrict Small Business Administration assistance. The bill was introduced in the Senate by Mr. Young, with Ms. Ernst as a co-sponsor.

What does SHORT TITLE. of Assisting Small Businesses Not Fraudsters Act do?

This Act is formally titled the Assisting Small Businesses Not Fraudsters Act.

What does ASSISTANCE PROHIBITED AFTER FRAUD CONVICTION. of Assisting Small Businesses Not Fraudsters Act do?

This section amends the Small Business Act to prohibit financial assistance from the Administrator to individuals and small business concerns associated with individuals convicted of financial misconduct or false statements related to covered loans or grants. The prohibition applies to associates, defined as officers, directors, owners with over 20% equity, key employees, or entities controlled by such individuals, excluding licensed small business investment companies. Covered loans or grants include those made under specific sections of the Small Business Act (7(a) paragraphs 36 and 37, and 7(b) related to COVID-19) and grants under the American Rescue Plan Act (section 5003) and the Economic Aid to Hard-Hit Small Businesses Act (section 324). A 'finally convicted' status requires either the expiration of appeal time or completion of the appeals process. The new rules do not apply to government contracts or agreements entered into before the enactment of this Act.

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Assisting Small Businesses Not Fraudsters Act

Last updated: 4/1/2025 · Introduced: 3/13/2025

Author: Todd Young (R-IN)

TL;DR (AI)

This bill prohibits the Small Business Administration from providing financial assistance to individuals convicted of financial misconduct or false statements related to specific loans or grants, including those related to COVID-19 relief.
The prohibition extends to associates of convicted individuals, such as officers, directors, and significant owners of small business concerns, with exceptions for licensed small business investment companies.
Existing government contracts and agreements entered into before the bill's enactment are not affected by these new restrictions.

119th Congressin committeeHR. 825(Passed House)Official page

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Includes provisions on preamble, short title., and 1 more.

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