I 
119TH CONGRESS 
1ST SESSION 
H. R. 825 
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 
JANUARY 28, 2025 
Mr. WILLIAMS of Texas (for himself, Mr. MFUME, and Ms. SIMON) introduced 
the following bill; which was referred to the Committee on Small Business 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Assisting Small Busi-
nesses Not Fraudsters Act’’. 
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SEC. 2. ASSISTANCE PROHIBITED AFTER FRAUD CONVIC-
TION. 
(a) IN GENERAL.—Section 16 of the Small Business 
Act (15 U.S.C. 645) is amended by adding at the end the 
following new subsection: 
‘‘(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 as-
sistance 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 sub-
ject 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’ 
means, with respect to a small business con-
cern— 
‘‘(i) an officer, director, or owner of 
more than 20 percent of the equity of, or 
a key employee of, such small business 
concern; 
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‘‘(ii) any entity not less than 20 per-
cent 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 busi-
ness concern, except for a licensed small 
business investment company (as defined 
in section 103(3) of the Small Business In-
vestment Act of 1958 (15 U.S.C. 662(3))). 
‘‘(B) COVERED
LOAN
OR
GRANT.—The 
term ‘covered loan or grant’ means— 
‘‘(i) a loan made under— 
‘‘(I) paragraph (36) or (37) of 
subsection (a) of section 7; or 
‘‘(II) subsection (b) of such sec-
tion in response to the COVID–19 
pandemic; or 
‘‘(ii) a grant made under— 
‘‘(I) section 5003 of the Amer-
ican Rescue Plan Act of 2021 (15 
U.S.C. 9009c); or 
‘‘(II) section 324 of the Eco-
nomic Aid to Hard-Hit Small Busi-
nesses, Nonprofits, and Venues Act 
(15 U.S.C. 9009a). 
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