Passed House. Latest step, Feb 25, 2025: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship. The House passed it 405–0.All 4 of Iowa's representatives voted yes in the House. It would change 1 section of existing law.
How this bill changes the law
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H.R. 825 would change 1 section of existing law. Read from the bill text as sent to the Senate (Feb 25, 2025).
(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 subsection (a) of section 7; or(II) subsection (b) of such section 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.
The bill says: Section 16 of the Small Business Act (15 U.S.C. 645) is amended by adding at the end the following new subsection:
From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.
What it does
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Assisting Small Businesses Not Fraudsters Act
This bill prohibits individuals convicted of certain financial crimes from receiving assistance from the Small Business Administration (SBA).
Specifically, the bill prohibits individuals who have been convicted of a crime involving financial misconduct or a false statement with respect to certain COVID-19 loans (e.g., Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants) from receiving any financial assistance from the SBA (other than a disaster loan).
The prohibition includes SBA assistance to small businesses that have an owner, officer, director, or key employee who has been convicted of such a crime.
Official summary by the Congressional Research Service (Introduced in House, Jan 28, 2025).
Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.
What has happened
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Feb 24, 2025Passed/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) Roll call recordLibrary of Congress
Jan 28, 2025Introduced in HouseLibrary of Congress