Preventing SBA Assistance from Going to China Act

This bill blocks certain companies tied to China from getting help from the Small Business Administration (SBA). A company will not count as a “small business” for SBA purposes if it is based and incorporated in China, or if more than 25% of its voting stock is owned by people or entities from China. That means those companies would not qualify for SBA programs or support in the U.S.

Key points:

• Who is affected: Businesses located and incorporated in China, or U.S./other companies with over 25% voting stock owned by Chinese citizens or China-registered entities.
• What changes: These companies would no longer be treated as “small businesses” under the Small Business Act, so they would not receive SBA assistance.
• Why it matters: It limits U.S. small business aid from going to firms with significant ties to China.