Assisting Small Businesses Not Fraudsters Act

This bill would prohibit individuals convicted of financial misconduct or making false statements regarding COVID-19 relief programs from receiving most forms of financial assistance from the Small Business Administration (SBA). These restrictions would apply to those involved with Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants, though disaster loans would remain exempt. Additionally, the bill would bar SBA assistance to any small business where an owner, officer, director, or key employee has been convicted of such crimes.

This bill affects individuals and small business owners who have been convicted of financial misconduct or making false statements related to specific COVID-19 relief programs, such as the Paycheck Protection Program and the Restaurant Revitalization Fund. It also impacts small businesses where an officer, director, or key employee has a conviction for these crimes. Additionally, the Small Business Administration is affected as it would be prohibited from providing most forms of financial assistance, excluding disaster loans, to these parties.

• Prohibition on SBA assistance for financial crime convictions. The bill bars individuals convicted of financial misconduct or making false statements regarding specific COVID-19 relief programs from receiving financial assistance from the Small Business Administration.
• Scope of restricted COVID-19 relief programs. The restriction applies to those who committed crimes related to the Paycheck Protection Program, the Restaurant Revitalization Fund, and Shuttered Venue Operators grants.
• Application to small business leadership. Small businesses are ineligible for SBA assistance if an owner, officer, director, or key employee has been convicted of the specified financial crimes.
• Exemption for disaster loans. The prohibition on receiving SBA financial assistance does not apply to disaster loans.

This bill modifies the eligibility requirements for Small Business Administration (SBA) financial assistance by prohibiting individuals and businesses associated with certain COVID-19 loan fraud convictions from participating in SBA programs, with the exception of disaster loans.

The bill aims to prevent individuals and small businesses associated with financial misconduct from accessing federal resources by prohibiting Small Business Administration assistance to those convicted of crimes involving false statements or financial fraud related to COVID-19 relief programs.