Summary

Makes an individual who is an "associate" of a small business and is finally convicted of financial misconduct or a false statement related to certain covered loans or grants ineligible for most SBA financial assistance, and also makes any small business that has such an associate ineligible. The rule preserves eligibility for assistance under the SBA's section 7(b) program and does not apply to government contracts entered into before the law takes effect. Defines key terms (including "associate," "covered loan or grant," and "finally convicted"), lists which pandemic-era loans and grants are treated as covered, and creates a narrow exception for pre-existing government agreements.

• An "associate" of a small business who is finally convicted of financial misconduct or making a false statement related to a covered loan/grant is barred from receiving most SBA financial assistance.
• Any small business that has such an associate also becomes ineligible for most SBA assistance.
• Eligibility for assistance under SBA section 7(b) is explicitly preserved and not barred by these convictions.
• "Covered loan or grant" includes specified SBA loans and pandemic-era relief grants (including certain ARP and Economic Aid Act grants).
• The law defines "associate" and "finally convicted" to set the scope of who is covered and when the bar applies.
• The prohibition does not apply to government contracts or agreements entered into before the law takes effect.
• The SBA Administrator enforces the new ineligibility rule when making assistance determinations.
• No new appropriations or funding streams are created; this is a change to eligibility rules in the Small Business Act.