IB Union Calendar No. 178 118th CONGRESS 1st Session H. R. 5427 [Report No. 118–219] 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 A BILL 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 ) 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 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 means, with respect to a small business concern— (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 means— (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 ); or (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 ); or (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 means, with respect to an individual or entity, that such individual or entity has been convicted of an offense and such conviction— (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 ), as added by subsection (a) of this Act, shall not apply to any contract or other agreement entered into by the Government prior to the date of the enactment of this Act.

September 26, 2023 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed