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

To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes. 1. Assistance prohibited after fraud conviction (a) In general Section 16 of the Small Business Act ( 15 U.S.C. 645 (h) Financial assistance prohibition (1) In general 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 shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b). (2) Business concerns A small business concern that has as an associate an individual subject to paragraph (1) shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b). (3) Definitions In this subsection: (A) Associate The term associate (i) an officer, director, or owner of more than 20 percent of the equity of, or a key employee of, such small business concern; (ii) any entity not less than 20 percent owned or controlled by one or more individuals referred to in clause (i); and (iii) any other individual or entity in control of or controlled by such small business concern, except for a licensed small business investment company (as defined in section 103(3) of the Small Business Investment Act of 1958 ( 15 U.S.C. 662(3) (B) Covered loan or grant The term covered loan or grant (i) a loan made under— (I) paragraph (36) or (37) of subsection (a) of section 7 of the Small Business Act ( 15 U.S.C. 636 (II) subsection (b) of such section in response to the COVID–19 pandemic; or (ii) a grant made under— (I) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (II) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (C) Finally convicted The term finally convicted (i) has not been appealed and is no longer appealable because the time for taking an appeal has expired; or (ii) has been appealed and the appeals process for such conviction is completed. . (b) Applicability Subsection (h) of section 16 of the Small Business Act ( 15 U.S.C. 645 September 26, 2023 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: This bill prohibits individuals convicted of certain financial crimes from receiving assistance from the Small Business Administration (SBA). Specifically, the bill prohibits individuals who have been convicted of a crime involving financial misconduct or a false statement with respect to certain COVID-19 loans (e.g., Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants) from receiving any financial assistance from the SBA (other than a disaster loan). The prohibition includes SBA assistance to small businesses that have an owner, officer, director, or key employee who has been convicted of such a crime.