Assisting Small Businesses Not Fraudsters Act

This bill prohibits individuals convicted of fraud against the government from receiving Small Business Administration (SBA) financial assistance, with an exception for certain disaster loans. It also makes small businesses with such individuals as associates ineligible for SBA assistance.

Sec. 2, Assistance prohibited after fraud conviction: This section amends the Small Business Act to add a new subsection (h). It states that an 'associate' of a small business who is 'finally convicted' of a crime involving financial misconduct or a false statement related to a 'covered loan or grant' cannot receive any SBA financial assistance, except for assistance under section 7(b) (disaster loans). A small business with such an associate is also ineligible for SBA assistance, except for section 7(b) loans. The term 'associate' includes officers, directors, owners of more than 20% equity, key employees, entities at least 20% owned by such individuals, and other controlling or controlled entities (excluding licensed SBICs). 'Covered loan or grant' includes loans under section 7(a)(36) or (37), COVID-19 response loans under section 7(b), grants under the American Rescue Plan Act of 2021, and grants under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. 'Finally convicted' means the conviction is no longer appealable or the appeals process is complete. This prohibition does not apply to contracts or agreements entered into before the bill's enactment.