Small Business Loans: Ban for Fraud Convictions
Also known as: Assisting Small Businesses Not Fraudsters Act
Legislative Progress
Key Points
- Congress passed a bill that stops people convicted of cheating the government out of COVID-19 relief money from getting future help from the Small Business Administration (SBA).
- The ban applies to business owners, officers, and key employees who were found guilty of lying or financial misconduct to get pandemic-era loans or grants, such as the Paycheck Protection Program.
- If a person with a fraud conviction owns at least 20% of a company or is in a leadership role, that entire business will be blocked from receiving most types of federal small business assistance.
- This rule only kicks in after a person has been 'finally convicted,' meaning they have finished all their legal appeals and the court's decision is permanent.
- The policy aims to protect taxpayer money by ensuring that federal resources go to honest business owners rather than those who have already been caught stealing from government programs.
Milestones
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 43). (text: CR H737)
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 405 - 0 (Roll no. 43). (text: CR H737)
Considered as unfinished business. (consideration: CR H748)
Vote Results
1 voteOn Motion to Suspend the Rules and Pass
Source Information
Document Type
Congressional Bill
Official Title
Assisting Small Businesses Not Fraudsters Act
Sponsor
Cosponsors
(3)Data Sources
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