Bill > HR825

This bill aims to prohibit individuals and businesses from receiving Small Business Administration (SBA) financial assistance if they have been convicted of financial misconduct or making false statements related to specific COVID-19 pandemic-era loans and grants. The bill defines an "associate" as officers, directors, owners with more than 20% equity, key employees, or entities significantly owned or controlled by such individuals. Specifically, anyone "finally convicted" (meaning their conviction is no longer appealable) of a crime involving financial misconduct or false statements regarding covered loans or grants from certain COVID-19 relief programs will be ineligible for SBA financial assistance, with the exception of assistance under section 7(b). This prohibition applies not only to the individual convicted but also to their small business concern, effectively preventing businesses with convicted associates from receiving most SBA financial support. The bill does not retroactively apply to government contracts or agreements entered into before its enactment, providing a prospective approach to preventing fraud in small business pandemic relief programs.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/825/all-info