    [Congressional Record Volume 171, Number 36 (Monday, February 24, 2025)]
    [House]
    [Pages H737-H739]
    From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                 ASSISTING SMALL BUSINESSES NOT FRAUDSTERS ACT

      Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and
    pass the bill (H.R. 825) to prohibit individuals convicted of
    defrauding the Government from receiving any assistance from the Small
    Business Administration, and for other purposes.
      The Clerk read the title of the bill.
      The text of the bill is as follows:

                                    H.R. 825

           Be it enacted by the Senate and House of Representatives of
         the United States of America in Congress assembled,

         SECTION 1. SHORT TITLE.

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

         SEC. 2. 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 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.''.
           (b) Applicability.--Subsection (h) of section 16 of the
         Small Business Act (15 U.S.C. 645), as added by subsection
         (a) of this Act, shall not apply to any contract or other
         agreement entered into by the Government prior to the date of
         the enactment of this Act.

      The SPEAKER pro tempore. Pursuant to the rule, the gentleman from

    [[Page H738]]

    Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez)
    each will control 20 minutes.
      The Chair recognizes the gentleman from Texas.

                                 General Leave

      Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all
    Members may have 5 legislative days in which to revise and extend their
    remarks and include extraneous material on the bill.
      The SPEAKER pro tempore. Is there objection to the request of the
    gentleman from Texas?
      There was no objection.
      Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may
    consume.
      Mr. Speaker, I rise today in support of H.R. 825, the Assisting Small
    Businesses Not Fraudsters Act.
      Mr. Speaker, SBA financial assistance programs are critical to
    entrepreneurs. Unfortunately, fraudsters infiltrated pandemic-era loans
    at an alarming rate. An estimated $200 billion was stolen from honest,
    hardworking small businesses who needed help when they were forced to
    close their doors during the COVID-19 pandemic. The harm these
    fraudsters caused small businesses is devastating to see.
      My bill creates accountability and ensures fraudsters are banned from
    receiving SBA resources for the rest of their lives. As chairman of the
    House Committee on Small Business, it is my duty to support America's
    small businesses, not fraudsters.
      Mr. Speaker, I ask my colleagues to support prioritizing honest,
    hardworking entrepreneurs over those who defrauded the government, and
    I reserve the balance of my time.
      Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
    consume.
      Mr. Speaker, I am pleased to be here today as we debate the first set
    of Committee on Small Business bills. Our committee has a long
    tradition of putting politics aside to deliver for our Nation's small
    business employers.
      Small businesses employ roughly half of the private workforce, create
    the majority of new jobs, drive innovation, and generate almost half of
    our Nation's economic activity. They are the heart and soul of our
    communities. Whether it is a neighborhood childcare center, or a bakery
    on Main Street, they are creating neighborhood jobs and reinvesting in
    the local economies.
      More than 21 million small businesses were launched during the
    previous administration, with a vast majority of the applications being
    filed by women, including women of color. This is a clear indicator of
    positive growth and strong entrepreneurial activity, but more work
    needs to be done.
      Today, we are considering seven bipartisan bills that will create
    additional opportunities for entrepreneurs.
      Mr. Speaker, my hope is that we can work together to conduct
    oversight of the Trump administration's policies. I have been
    particularly troubled by the pauses in Federal funding to small
    businesses, inflationary tariffs, and Elon Musk's access to the SBA's
    HR, contract, and payment systems. I welcome the opportunity to look
    into these matters in a bipartisan way.
      Mr. Speaker, turning to our first bill, H.R. 825 will prohibit anyone
    convicted of defrauding the government during the COVID-19 pandemic
    from receiving an SBA loan.
      The Small Business Administration disbursed approximately $1.2
    trillion in economic aid during the pandemic. The vast majority of this
    aid served as a lifeline, helping to keep small businesses afloat
    during troubling and uncertain economic times.
      Unfortunately, bad actors took advantage of the program early in the
    pandemic when SBA removed or weakened internal controls. Upon taking
    office, the Biden administration reinstituted longstanding antifraud
    controls and put new safeguards into place to curb the flow of pandemic
    dollars to fraudsters.
      Before issuing a loan, the SBA would screen applicants on the
    government's Do Not Pay list and then check its internal database for
    fraudulent flags or holds. Borrowers had an opportunity to clear their
    names, but the SBA did not move forward until the holds were cleared.
      The bill we are considering today has the same effect as the actions
    taken by the Biden administration, and it sends a strong message that
    SBA will not do business with anyone who defrauded the government.
      Mr. Speaker, the single most important action that Congress can take
    to recover fraudulent pandemic funds is to fully fund the inspector
    general and give the office the resources it needs to go after the bad
    actors.
      Former Representative Luetkemeyer and I sponsored two bills, which
    became law, to extend the statute of limitations for fraud in the PPP
    and the EIDL program to 10 years. Without additional resources, the OIG
    will not be able to capitalize on these new laws, and American
    taxpayers will lose out.
      In closing, I appreciate the bipartisan work of Chairman Williams,
    and Representatives Simon and Mfume.
      Mr. Speaker, I urge my colleagues to support the legislation, and I
    reserve the balance of my time.
      Mr. WILLIAMS of Texas. Mr. Speaker, this important legislation will
    hold these fraudsters accountable, and I urge my colleagues to support
    it.
      Mr. Speaker, I reserve the balance of my time.
      Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentlewoman from
    California (Ms. Simon).
      Ms. SIMON. Mr. Speaker, I thank Ranking Member Velazquez for this
    opportunity to speak. I thank Chairman Williams for working with me to
    introduce this bill.
      Mr. Speaker, I urge my colleagues to support this effort to
    prioritize small businesses in the future through funding opportunities
    by preventing pandemic fraudsters from accessing Federal small business
    funds.
      Like other communities around the United States, in California's 12th
    District, small businesses are the lifeblood of our communities. Over
    29,000 small businesses in our district bolster our region. These
    businesses struggled throughout the pandemic.

      In Oakland's downtown, for instance, many of these institutions are
    fighting day in and day out just to stay afloat. I thank the Small
    Business Administration employees who work hard to support them.
      These wonderful Federal employees have been connecting with small
    businesses in our district with emergency assistance, access to
    capital, advice on how to keep the doors open in the darkest times, how
    to pay their workers, and how to be strong servicemembers in our
    community. I have heard from many of these Federal workers who say they
    have been under assault by this current administration.
      Just last month, I visited the Small Business Administration field
    office. Less than 2 hours after I left, two of those employees had
    received layoff notices.
      Mr. Speaker, firing Federal employees in this moment does not
    decrease the need or importance of the agency; it just makes it harder
    for entrepreneurs, for restaurateurs, for childcare operators, and
    others to keep their employees paid, to keep their doors open, and to
    keep our downtowns thriving.
      Every dollar that Congress gives to the Small Business Administration
    in this moment means the difference of a small business opening and
    employing folks or filing for bankruptcy.
      The Small Business Administration has provided $1.2 trillion, let me
    say that again, $1.2 trillion in Paycheck Protection Program loans and
    other emergency assistance during the pandemic. As the ranking member
    has told us, unfortunately, there have been serious bad actors who took
    advantage of these funds, and those folks defrauded not only the
    government, but they defrauded the mom-and-pop shops on Main Street
    and, in my case, on Broadway.
      Those dollars could have been used to create jobs, revitalize
    communities, and to help those businesses stay open and thrive.
    Instead, these fraudsters took advantage of the lax application
    screenings, which we believe may have resulted in them receiving at
    least 17 percent of the total Small Business Administration assistance.
      The SPEAKER pro tempore. The time of the gentlewoman has expired.
      Ms. VELAZQUEZ. Mr. Speaker, I yield an additional 30 seconds to the
    gentlewoman from California.
      Ms. SIMON. Mr. Speaker, the Biden administration has created new
    safeguards to reduce the potential for this fraud, but this legislation
    that is supported by our committee would build

    [[Page H739]]

    on this effort, making convicted fraudsters ineligible for Federal
    small business assistance.
      Mr. Speaker, as someone who has driven a payroll for over 30 years, I
    cannot express how important this legislation is at this moment. We
    love and support our small businesses with all that we have.
      Mr. WILLIAMS of Texas. Mr. Speaker, I reserve the balance of my time.
      Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from
    Maryland (Mr. Olszewski).
      Mr. OLSZEWSKI. Mr. Speaker, I thank the ranking member for yielding.
    I also thank the chairman for bringing this legislation forward along
    with my colleague from California (Ms. Simon).
      Mr. Speaker, I rise today in strong support of the Assisting Small
    Businesses Not Fraudsters Act, legislation that will help ensure that
    small businesses who need and deserve support get it, while cutting out
    fraudsters seeking to exploit vital relief programs.
      Small businesses are the backbone of our economy. They create jobs,
    they foster innovation, and they drive our local communities forward.
    They should be who we lift up and support, and they rightly are the
    beneficiaries of many Small Business Administration programs.
      However, far too often, we have scammers taking advantage of these
    worthy programs. We saw this, for example, during the COVID-19
    pandemic, when the Paycheck Protection Program, Economic Injury
    Disaster Loan Program, and other relief funds were a lifeline for so
    many, but were also exploited by bad actors to the tune of an estimated
    $36 billion.
      This bill ensures that will no longer happen again. It protects
    taxpayer dollars, ensuring that they go where Congress intended: only
    to the legitimate small businesses of our country.
      Mr. Speaker, I thank my colleagues for bringing this forward.
    Government efficiency is a good thing, but there is a right way to go
    about it and a legal way to go about it. This bill is a great example
    of a bipartisan way to go forward.
      Mr. Speaker, I urge my colleagues to support this legislation.
      Mr. WILLIAMS of Texas. Mr. Speaker, I have no further speakers, and I
    am prepared to close.
      Ms. VELAZQUEZ. Mr. Speaker, I gladly rise in support of this
    legislation, and I yield back the balance of my time.
      Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support
    this commonsense legislation, and I yield back the balance of my time.
      The SPEAKER pro tempore. The question is on the motion offered by the
    gentleman from Texas (Mr. Williams) that the House suspend the rules
    and pass the bill, H.R. 825.
      The question was taken.
      The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
    being in the affirmative, the ayes have it.
      Mr. WILLIAMS of Texas. Mr. Speaker, on that I demand the yeas and
    nays.
      The yeas and nays were ordered.
      The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
    proceedings on this motion will be postponed.

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