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Prohibiting SBA Assistance for Individuals Convicted of Government Fraud

This legislation bans individuals and businesses convicted of financial misconduct or making false statements related to government loans or grants from receiving any financial assistance from the Small Business Administration (SBA). This measure ensures that taxpayer money is protected and that those who defrauded public funds cannot benefit from future small business support programs. The prohibition also extends to businesses where such convicted individuals hold key positions, such as officers or owners of more than 20% equity.
Key points
Individuals finally convicted of financial misconduct or false statements regarding covered government loans or grants (including COVID-19 relief) are ineligible for SBA financial assistance.
The ban also applies to small businesses if an ineligible individual is an associate, such as an officer, director, key employee, or owner of more than 20% equity.
The goal is to safeguard public funds and ensure that small business aid is directed toward honest entrepreneurs.
The new rules do not affect contracts or agreements entered into by the Government before the law's enactment date.
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Expired
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Additional Information
Print number: 118_HR_5427
Sponsor: Rep. Williams, Roger [R-TX-25]
Process start date: 2023-09-13
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

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

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_5427.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-09-13.

What are the main provisions?

Key points include:

  • Individuals finally convicted of financial misconduct or false statements regarding covered government loans or grants (including COVID-19 relief) are ineligible for SBA financial assistance.
  • The ban also applies to small businesses if an ineligible individual is an associate, such as an officer, director, key employee, or owner of more than 20% equity.
  • The goal is to safeguard public funds and ensure that small business aid is directed toward honest entrepreneurs.
  • The new rules do not affect contracts or agreements entered into by the Government before the law's enactment date.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Williams, Roger [R-TX-25].

What is the latest detailed status?

The latest detailed status is: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H5917)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Economy Courts and Law