Assisting Small Businesses Not Fraudsters Act

Floor Speech

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Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 825) to prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 825

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Assisting Small Businesses Not Fraudsters Act''. SEC. 2. 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; 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 a person, that such person 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.

Mr. Speaker, I rise today in support of H.R. 825, the Assisting Small Businesses Not Fraudsters Act.

Mr. Speaker, SBA financial assistance programs are critical to entrepreneurs. Unfortunately, fraudsters infiltrated pandemic-era loans at an alarming rate. An estimated $200 billion was stolen from honest, hardworking small businesses who needed help when they were forced to close their doors during the COVID-19 pandemic. The harm these fraudsters caused small businesses is devastating to see.

My bill creates accountability and ensures fraudsters are banned from receiving SBA resources for the rest of their lives. As chairman of the House Committee on Small Business, it is my duty to support America's small businesses, not fraudsters.

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Mr. WILLIAMS of Texas. Mr. Speaker, this important legislation will hold these fraudsters accountable, and I urge my colleagues to support it.
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Mr. WILLIAMS of Texas. Mr. Speaker, I have no further speakers, and I am prepared to close.

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Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support this commonsense legislation, and I yield back the balance of my time.

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Mr. WILLIAMS of Texas. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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