IB 

Union Calendar No. 178 

118TH CONGRESS 

1ST SESSION H. R. 5427 

[Report No. 118–219] 

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 

SEPTEMBER 13, 2023 

Mr. WILLIAMS of Texas (for himself, Mr. MFUME, and Mr. BEAN of Florida) 

introduced the following bill; which was referred to the Committee on 

Small Business 

SEPTEMBER 26, 2023 

Reported from the Committee on Small Business; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
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•HR 5427 RH

A BILL 

To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes. 


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•HR 5427 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. ASSISTANCE PROHIBITED AFTER FRAUD CON4 VICTION. 

5 (a) IN GENERAL.—Section 16 of the Small Business 

6 Act (15 U.S.C. 645) is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(h) FINANCIAL ASSISTANCE PROHIBITION.— 

9 ‘‘(1) IN GENERAL.—An associate of a small 

10 business concern who is finally convicted of any 

11 crime involving or relating to financial misconduct or 

12 a false statement with respect to a covered loan or 

13 grant shall be ineligible to receive any financial as14 sistance from the Administrator, other than financial 

15 assistance under section 7(b). 

16 ‘‘(2) BUSINESS CONCERNS.—A small business 

17 concern that has as an associate an individual sub18 ject to paragraph (1) shall be ineligible to receive 

19 any financial assistance from the Administrator, 

20 other than financial assistance under section 7(b). 

21 ‘‘(3) DEFINITIONS.—In this subsection: 

22 ‘‘(A) ASSOCIATE.—The term ‘associate’ 

23 means, with respect to a small business con24 cern— 


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•HR 5427 RH

1 ‘‘(i) an officer, director, or owner of 

2 more than 20 percent of the equity of, or 

3 a key employee of, such small business 

4 concern; 

5 ‘‘(ii) any entity not less than 20 per6 cent owned or controlled by one or more 

7 individuals referred to in clause (i); and 

8 ‘‘(iii) any other individual or entity in 

9 control of or controlled by such small busi10 ness concern, except for a licensed small 

11 business investment company (as defined 

12 in section 103(3) of the Small Business In13 vestment Act of 1958 (15 U.S.C. 662(3)). 

14 ‘‘(B) COVERED LOAN OR GRANT.—The 

15 term ‘covered loan or grant’ means— 

16 ‘‘(i) a loan made under— 

17 ‘‘(I) paragraph (36) or (37) of 

18 subsection (a) of section 7 of the 

19 Small Business Act (15 U.S.C. 636); 

20 or 

21 ‘‘(II) subsection (b) of such sec22 tion in response to the COVID–19 

23 pandemic; or 

24 ‘‘(ii) a grant made under— 


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•HR 5427 RH

1 ‘‘(I) section 5003 of the Amer2 ican Rescue Plan Act of 2021 (15 

3 U.S.C. 9009c); or 

4 ‘‘(II) section 324 of the Eco5 nomic Aid to Hard-Hit Small Busi6 nesses, Nonprofits, and Venues Act 

7 (15 U.S.C. 9009a). 

8 ‘‘(C) FINALLY CONVICTED.—The term ‘fi9 nally convicted’ means, with respect to an indi10 vidual or entity, that such individual or entity 

11 has been convicted of an offense and such con12 viction— 

13 ‘‘(i) has not been appealed and is no 

14 longer appealable because the time for tak15 ing an appeal has expired; or 

16 ‘‘(ii) has been appealed and the ap17 peals process for such conviction is com18 pleted.’’. 

19 (b) APPLICABILITY.—Subsection (h) of section 16 of 

20 the Small Business Act (15 U.S.C. 645), as added by sub21 section (a) of this Act, shall not apply to any contract or 

22 other agreement entered into by the Government prior to 

23 the date of the enactment of this Act. 


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Union Calendar No. 178 

118TH CONGRESS 

1ST SESSION H. R. 5427 

[Report No. 118–219] 

A BILL 

To prohibit individuals convicted of defrauding the 

purposes. the Small Business Administration, and for other Government from receiving any assistance from 

SEPTEMBER 26, 2023 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


kjohnson on DSK7ZCZBW3PROD with $$_JOB