S. 1047 — Assisting Small Businesses Not Fraudsters Act

This section establishes in the Small Business Act a prohibition on financial assistance from the Small Business Administration (SBA), other than disaster loans under section 7(b), to (1) associates of small business concerns finally convicted of crimes involving or relating to financial misconduct or false statements with respect to covered loans or grants, and (2) small business concerns with such associates. An associate includes an officer, director, owner of more than 20% equity, or key employee of the concern; an entity 20% or more owned or controlled by such persons; or another individual or entity in control of or controlled by the concern (except licensed small business investment companies). Covered loans or grants include Paycheck Protection Program loans under section 7(a)(36) or (37), COVID-19 Economic Injury Disaster Loans under section 7(b), Restaurant Revitalization Program grants, and Shuttered Venue Operators Program grants. The prohibition does not apply to government contracts or agreements entered into prior to enactment.