Assisting Small Businesses Not Fraudsters Act
Anyone convicted of fraud, financial misconduct, or making false statements to obtain COVID-19 relief is barred from receiving future financial support from the Small Business Administration. This restriction also disqualifies any company where a convicted individual serves as an officer, director, or key employee, or owns at least 20 percent of the business. Convicted borrowers and their affiliated businesses remain eligible only for standard federal disaster loans, and the ban does not apply to government agreements signed before the legislation takes effect.
What this bill touches.
Who it helps · who it burdens.
Who it burdens
- Individuals convicted of COVID-19 relief fraud or misconductBarred from receiving financial assistance from the Small Business Administration, except for section 7(b) disaster loans, for any agreement entered into after enactment (Sec. 2(a), Sec. 2(b)).
- Small businesses with leaders or major owners convicted of COVID-19 relief fraudIneligible to receive Small Business Administration financial assistance, other than disaster loans under section 7(b), if an officer, director, key employee, or owner of more than 20 percent of equity is finally convicted of financial misconduct or false statements regarding federal COVID-19 relief programs (Sec. 2(a), Sec. 2(b)).
The provisions, in plain language.
Disqualifies any individual with a final conviction for financial misconduct or false statements regarding federal COVID-19 relief loans or grants from receiving financial assistance from the Small Business Administration, except for disaster loans, under agreements made after enactment.
Disqualifies any small business from receiving Small Business Administration financial assistance, except for disaster loans, if an officer, director, key employee, or owner of at least 20 percent has a final conviction for COVID-19 relief fraud or financial misconduct.