S. 1047 · On the floor · Commerce

Assisting Small Businesses Not Fraudsters Act

What it does

Prohibits individuals convicted of financial misconduct or false statements related to covered small-business loans or grants from receiving SBA financial assistance, except under section 7(b).
Prohibits small businesses with associates convicted of fraud related to covered loans or grants from receiving SBA financial assistance, except under section 7(b).
Defines 'associate' to include officers, directors, owners of more than 20 percent equity, key employees, entities 20 percent owned by those individuals, and other persons controlling or controlled by the business, excluding licensed small business investment companies.
Defines 'covered loan or grant' to mean certain SBA section 7(a) loans, pandemic-related section 7(b) loans, American Rescue Plan Act grants, and Economic Aid to Hard-Hit Businesses Act grants.
Applies the prohibition only to contracts or agreements entered into after the date of enactment, not to prior agreements.

Apr 1, 2025: Placed on Senate Legislative Calendar under General Orders. Calendar No. 36.

Committee: Senate Small Business and Entrepreneurship