Preventing SBA Assistance from Going to China Act | ChamberLight
Bills · HR 1081
IN COMMITTEE· 119TH CONGRESS
House BillHR 1081Commerce
Preventing SBA Assistance from Going to China Act
INTRO FEB 6· LAST ACTION FEB 6
READING
1MIN
COSPONSORS
8
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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Voters should care about this bill because it directly addresses how U.S. taxpayer money is spent and where it goes. If this bill becomes law, it ensures that financial aid and support programs from the Small Business Administration are strictly limited to businesses without significant ties to the People's Republic of China.
This matters for concerns about national economic security, ensuring U.S. resources primarily benefit domestic businesses, and avoiding unintended support for a geopolitical rival. Without this law, there's a risk that some U.S. taxpayer-funded programs could inadvertently assist businesses that are heavily influenced by or rooted in China.
KEY PROVISIONS
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PROVISION 01
Prohibits businesses that are both located and incorporated in the People's Republic of China from being considered a "small business concern."
This directly bars foreign-based Chinese companies from receiving U.S. small business aid.
PROVISION 02
Prohibits businesses with over 25% of their voting stock owned by affiliates that are citizens of or organized under the laws of the People's Republic of China from being considered a "small business concern."
This prevents businesses that might be U.S.-based but heavily influenced by Chinese ownership from getting U.S. aid.
PROVISION 03
Amends Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) to add these new prohibitions to the definition of a "small business concern."
This is the legal mechanism that makes the prohibitions effective across all SBA programs and assistance.
Voters should care about this bill because it directly addresses how U.S. taxpayer money is spent and where it goes. If this bill becomes law, it ensures that financial aid and support programs from the Small Business Administration are strictly limited to businesses without significant ties to the People's Republic of China.
This matters for concerns about national economic security, ensuring U.S. resources primarily benefit domestic businesses, and avoiding unintended support for a geopolitical rival. Without this law, there's a risk that some U.S. taxpayer-funded programs could inadvertently assist businesses that are heavily influenced by or rooted in China.
KEY PROVISIONS
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high
Prohibits businesses that are both located and incorporated in the People's Republic of China from being considered a "small business concern."
This directly bars foreign-based Chinese companies from receiving U.S. small business aid.
high
Prohibits businesses with over 25% of their voting stock owned by affiliates that are citizens of or organized under the laws of the People's Republic of China from being considered a "small business concern."
This prevents businesses that might be U.S.-based but heavily influenced by Chinese ownership from getting U.S. aid.
med
Amends Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) to add these new prohibitions to the definition of a "small business concern."
This is the legal mechanism that makes the prohibitions effective across all SBA programs and assistance.
GLOSSARY
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Small Business Administration (SBA)
A U.S. government agency that helps small businesses by providing loans, guarantees, contracts, counseling, and other forms of support.
Small business concern
A business that meets specific size standards set by the SBA, making it eligible for various government programs and assistance.
Affiliate
A business or person that has a close relationship or connection with another business, often through common ownership or control.
Voting stock
Shares of ownership in a company that give the shareholder the right to vote on company matters, like electing board members.
People's Republic of China
The official name for China, a country in East Asia.
Incorporated
The process by which a business is legally formed as a corporation, making it a separate legal entity from its owners.
ACTION TIMELINE
2 EVENTS
FEB 6, 25
Introduced in House
INTROREFERRAL
FEB 6, 25
Referred to the House Committee on Small Business.