A Bill to Prohibit Individuals Convicted of Defrauding the Government from Receiving Any Assistance (119th Congress)
Summary
The text of a bill of the 119th Congress, 1st Session, to prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration. Section 2 adds a financial assistance prohibition to the Small Business Act, under which 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 is ineligible to receive financial assistance from the Administrator, other than assistance under section 7(b). The bill does not apply to contracts entered into before enactment.
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- Issuer
- Congressional materials
- Document type
- 407154 2025 02 26 House Committee On Small Business Celebrates Seven Att0
- Date
- 2025-02-26
- Case
- 407154 2025 02 26 House Committee On Small Business Celebrates Seven Att0
Cite this document
“A Bill to Prohibit Individuals Convicted of Defrauding the Government from Receiving Any Assistance (119th Congress).”
Dated 2025-02-26. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-02-26-407154-2025-02-26-house-committee-on-small-business-celebrates-seven-att0/
, SHA-256 9e5832bd36160774ddbeae20a09afbe61e76572187ae75bf577e32df75b5671d.Full text
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[118H5427]
M
.....................................................................
(Original Signature of Member)
H. R. ll
119TH CONGRESS
1ST SESSION
To prohibit individuals convicted of defrauding the Government from receiving
any assistance from the Small Business Administration, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr. WILLIAMS of Texas introduced the following bill; which was referred to
the Committee on llllllllllllll
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.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Assisting Small Busi-
5 nesses Not Fraudsters Act’’.
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2
1 SEC. 2. ASSISTANCE PROHIBITED AFTER FRAUD CONVIC-
2 TION.
3 (a) IN GENERAL.—Section 16 of the Small Business
4 Act (15 U.S.C. 645) is amended by adding at the end the
5 following new subsection:
6 ‘‘(h) FINANCIAL ASSISTANCE PROHIBITION.—
7 ‘‘(1) IN GENERAL.—An associate of a small
8 business concern who is finally convicted of any
9 crime involving or relating to financial misconduct or
10 a false statement with respect to a covered loan or
11 grant shall be ineligible to receive any financial as-
12 sistance from the Administrator, other than financial
13 assistance under section 7(b).
14 ‘‘(2) BUSINESS CONCERNS.—A small business
15 concern that has as an associate an individual sub-
16 ject to paragraph (1) shall be ineligible to receive
17 any financial assistance from the Administrator,
18 other than financial assistance under section 7(b).
19 ‘‘(3) DEFINITIONS.—In this subsection:
20 ‘‘(A) ASSOCIATE.—The term ‘associate’
21 means, with respect to a small business con-
22 cern—
23 ‘‘(i) an officer, director, or owner of
24 more than 20 percent of the equity of, or
25 a key employee of, such small business
26 concern;
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1 ‘‘(ii) any entity not less than 20 per-
2 cent owned or controlled by one or more
3 individuals referred to in clause (i); and
4 ‘‘(iii) any other individual or entity in
5 control of or controlled by such small busi-
6 ness concern, except for a licensed small
7 business investment company (as defined
8 in section 103(3) of the Small Business In-
9 vestment Act of 1958 (15 U.S.C. 662(3)).
10 ‘‘(B) COVERED LOAN OR GRANT.—The
11 term ‘covered loan or grant’ means—
12 ‘‘(i) a loan made under—
13 ‘‘(I) paragraph (36) or (37) of
14 subsection (a) of section 7; or
15 ‘‘(II) subsection (b) of such sec-
16 tion in response to the COVID–19
17 pandemic; or
18 ‘‘(ii) a grant made under—
19 ‘‘(I) section 5003 of the Amer-
20 ican Rescue Plan Act of 2021 (15
21 U.S.C. 9009c); or
22 ‘‘(II) section 324 of the Eco-
23 nomic Aid to Hard-Hit Small Busi-
24 nesses, Nonprofits, and Venues Act
25 (15 U.S.C. 9009a).
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1 ‘‘(C) FINALLY CONVICTED.—The term ‘fi-
2 nally convicted’ means, with respect to a per-
3 son, that such person has been convicted of an
4 offense and such conviction—
5 ‘‘(i) has not been appealed and is no
6 longer appealable because the time for tak-
7 ing an appeal has expired; or
8 ‘‘(ii) has been appealed and the ap-
9 peals process for such conviction is com-
10 pleted.’’.
11 (b) APPLICABILITY.—Subsection (h) of section 16 of
12 the Small Business Act (15 U.S.C. 645), as added by sub-
13 section (a) of this Act, shall not apply to any contract or
14 other agreement entered into by the Government prior to
15 the date of the enactment of this Act.
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