S. 1047Senate119th Congress (2025-2027)In Committee

Assisting Small Businesses Not Fraudsters Act

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

AI-Generated Summary

Updated November 24, 2025 at 1:57 AM UTC

The Assisting Small Businesses Not Fraudsters Act would prevent people who have been finally convicted of financial fraud or false statements related to SBA loans or grants from getting any SBA financial help, except for a limited type of assistance under section 7(b). It also blocks any small business that employs or is controlled by such a convicted individual from receiving SBA assistance. The bill defines key terms and makes the rule apply only to new agreements after the law’s enactment.

Key Provisions

Adds a new subsection (h) to Section 16 of the Small Business Act that bars anyone who is finally convicted of a crime involving financial misconduct or false statements about a covered SBA loan or grant from receiving any SBA financial assistance, except for assistance under section 7(b).
Extends the prohibition to any small business that has such a convicted individual as an associate (officer, director, owner of ≥20% equity, key employee, or an entity controlling or controlled by the business).
Defines “associate,” “covered loan or grant” (including certain pandemic‑related loans and specific grant programs), and “finally convicted” (a conviction that is no longer appealable or whose appeals have been exhausted).
Specifies that the rule does not apply to any government contract or agreement that was entered into before the law takes effect.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

4 earlier actions

SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 36.

April 1, 2025

View full timeline

SenateIntro Referral

Introduced in Senate

March 13, 2025

SenateIntro Referral

Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

March 13, 2025

SenateCommittee

Committee on Small Business and Entrepreneurship. Ordered to be reported without amendment favorably.

Small Business and Entrepreneurship Committee

March 27, 2025

SenateCommittee

Committee on Small Business and Entrepreneurship. Reported by Senator Ernst without amendment. Without written report.

Small Business and Entrepreneurship Committee

April 1, 2025

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 36.

April 1, 2025

Bill Text

2 versions available

Reading Mode

Raw Text PDF XML

Reported to SenateIssued April 1, 2025

Calendar No. 36

119th CONGRESS

1st Session

S. 1047

IN THE SENATE OF THE UNITED STATES

March 13, 2025

Mr. Young (for himself and Ms. Ernst) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

April 1 (legislative day, March 31), 2025

Reported by Ms. Ernst, without amendment

A BILL

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

Short title

This Act may be cited as the Assisting Small Businesses Not Fraudsters Act.

Assistance prohibited after fraud conviction

(a)

In general

Section 16 of the Small Business Act (15 U.S.C. 645) is amended by adding at the end the following new subsection:

(h)

Financial assistance prohibition

(1)

In general

An associate of a small business concern who is finally convicted of any crime involving or relating to financial misconduct or a false statement with respect to a covered loan or grant shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).

(2)

Business concerns

A small business concern that has as an associate an individual subject to paragraph (1) shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).

(3)

Definitions

In this subsection:

(A)

Associate

The term associate means, with respect to a small business concern—

(i)

an officer, director, or owner of more than 20 percent of the equity of, or a key employee of, such small business concern;

(ii)

any entity not less than 20 percent owned or controlled by one or more individuals referred to in clause (i); and

(iii)

any other individual or entity in control of or controlled by such small business concern, except for a licensed small business investment company (as defined in section 103(3) of the Small Business Investment Act of 1958 (15 U.S.C. 662(3))).

(B)

Covered loan or grant

The term covered loan or grant means—

(i)

a loan made under—

(I)

paragraph (36) or (37) of section 7(a); or

(II)

section 7(b) in response to the COVID–19 pandemic; or

(ii)

a grant made under—

(I)

section 5003 of the American Rescue Plan Act of 2021 (15 U.S.C. 9009c); or

(II)

section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 9009a).

(C)

Finally convicted

The term finally convicted means, with respect to a person, that such person has been convicted of an offense and such conviction—

(i)

has not been appealed and is no longer appealable because the time for taking an appeal has expired; or

(ii)

has been appealed and the appeals process for such conviction is completed.

(b)

Applicability

Subsection (h) of section 16 of the Small Business Act (15 U.S.C. 645), as added by subsection (a) of this section, shall not apply to any contract or other agreement entered into by the Government prior to the date of the enactment of this Act.

April 1 (legislative day, March 31), 2025

Reported without amendment