This bill aims to stop people who cheated on COVID-era small business aid from getting new help from the Small Business Administration (SBA). If someone is finally convicted of financial misconduct or making false statements about certain SBA loans or grants, they cannot receive SBA financial assistance, except for disaster loans. A small business also loses access to SBA financial help if it has such a person as an owner, officer, director, key employee, or other controlling associate. An associate generally includes anyone who owns more than 20% of the business or controls it. These rules do not undo government contracts made before the law takes effect.

“Covered” COVID programs include Paycheck Protection Program loans, certain COVID disaster loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants. A conviction is “final” when it can’t be appealed anymore or the appeals are over.

• Who is affected: People finally convicted of fraud or false statements about listed COVID SBA aid, and any small business with such a person in a key role or with significant ownership.
• What changes: They are blocked from getting SBA financial help, except disaster loans.
• When: After the law takes effect; it doesn’t apply to government contracts made before that date.