Assisting Small Businesses Not Fraudsters Act
Key claim: HR825 would bar individuals convicted of financial crimes related to COVID-19 relief programs (PPP, RRF, SVOG) from receiving SBA financial assistance, extending the prohibition to businesses where such individuals serve as owners, officers, directors, or key employees.
Abstract
(HR825 · 119th Congress) 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. Latest action (2025-02-25): Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Why this matters
The bill tightens eligibility gates for SBA financial assistance by permanently disqualifying COVID-relief fraud convicts and any business where they hold ownership or control roles. For small businesses and their lenders, this adds a diligence dimension around principals’ criminal histories tied to pandemic-era programs, and for SBA it codifies a categorical bar rather than a discretionary screen. It extends the well-established federal practice of barring convicted individuals from federal benefit programs into the SBA context.