Assisting Small Businesses Not Fraudsters Act
Sponsored By: Senator Todd Young
In Committee
Summary
Blocks convicted financial fraudsters from receiving Small Business Administration (SBA) financial aid and extends that ban to small businesses tied to those people, while carving out certain COVID-era 7(b) assistance. The bill would define who counts as an "associate" and limit the rule to agreements made after the law takes effect.
Show full summary
- Individuals convicted of crimes involving financial misconduct or false statements related to covered SBA loans or grants would be ineligible for any SBA financial assistance except for section 7(b) pandemic relief.
- A small business that has an associate subject to that prohibition would also be barred from SBA assistance, with the same 7(b) exception.
- "Associate" would include officers, directors, owners of more than 20% equity, key employees, entities 20% owned or controlled by such persons, and parties in control or controlled by the small business, but would exclude licensed Small Business Investment Companies. Covered assistance would include certain section 7 loans and specified pandemic-era grants, and the rule would apply only to contracts and agreements made after enactment.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
Tighter small business aid rules for fraud convictions
The bill would bar the SBA from giving most financial help to any associate finally convicted of financial misconduct or a false statement about a covered loan or grant. A small business with such an associate would also lose eligibility. Financial help under section 7(b) would still be allowed. A conviction would be final after appeals end or the time to appeal runs out. The new rule would not apply to government contracts signed before enactment.
More associates and awards fall under ban
The bill would define who counts as an "associate." It would include officers, directors, owners of more than 20%, key employees, and people or firms that control or are controlled by the business. Licensed small business investment companies would be excluded. It would also define which awards are covered, including certain pandemic loans under SBA’s 7(a) and 7(b) authorities and two COVID-19 relief grant programs named in law.
Sponsors & CoSponsors
Sponsor
Todd Young
IN • R
Cosponsors
Joni Ernst
IA • R
Sponsored 3/27/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in