Bills · S 1047
REPORTED· 119TH CONGRESS
Senate BillS 1047Fraud offenses and financial crimesCredit and credit markets
Assisting Small Businesses Not Fraudsters Act
INTRO MAR 13· LAST ACTION APR 1
READING
3MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it directly addresses concerns about government fraud and the responsible use of taxpayer money. During recent crises, like the COVID-19 pandemic, significant federal aid was distributed, and there have been numerous reports of individuals and businesses misusing these funds. This bill aims to prevent those who have already been caught and convicted of such misuse from receiving additional aid in the future.
If this bill becomes law, it could help restore public trust in government assistance programs by ensuring that funds are directed towards legitimate small businesses rather than those with a proven track record of fraud. If it doesn't pass, individuals and businesses convicted of defrauding the government on past programs might still be eligible for future non-disaster SBA loans and grants, potentially allowing fraudsters to access public funds again and undermining efforts to hold them accountable.
KEY PROVISIONS
5AI-extractedPROVISION 01
Prohibits individuals convicted of financial misconduct or making false statements related to specific past government loans or grants from receiving most Small Business Administration (SBA) financial assistance.
Prevents individuals who have defrauded specific government programs, particularly COVID-19 relief, from accessing future SBA funds.
PROVISION 02
Extends this prohibition to any small business that has an "associate" (such as a key owner, officer, or employee) with such a conviction.
Ensures that businesses controlled by or significantly influenced by convicted fraudsters cannot indirectly receive SBA assistance.
PROVISION 03
Defines "covered loan or grant" to include specific COVID-19 relief programs like the Paycheck Protection Program (PPP), certain COVID-era disaster loans, and grants such as the Restaurant Revitalization Fund and Shuttered Venue Operators Grants.
Clarifies which past instances of fraud trigger the prohibition, focusing on high-profile pandemic relief efforts.
PROVISION 04
Specifies that the prohibition does not apply to general (non-COVID-related) disaster assistance loans provided under Section 7(b) of the Small Business Act.
Maintains a lifeline for businesses or individuals needing genuine disaster relief, even if they have a past fraud conviction unrelated to that specific type of aid.
PROVISION 05
Clarifies that the new rules only apply to new agreements and will not retroactively affect existing contracts or agreements entered into before the bill becomes law.
Provides clarity on the effective date and avoids disrupting existing government-business relationships.
SPONSORSHIP
1 + 2
R· Indiana
YRS IN OFFICE
15
BILLS LED
65
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 2 IND 0
ACTION TIMELINE
5 EVENTSAPR 1
Committee on Small Business and Entrepreneurship. Reported by Senator Ernst without amendment. Without written report.
APR 1
Placed on Senate Legislative Calendar under General Orders. Calendar No. 36.
MAR 27
Committee on Small Business and Entrepreneurship. Ordered to be reported without amendment favorably.
MAR 13
Introduced in Senate
BILL INFO
TypeSenate Bill
NumberS 1047
Congress119th
StatusReported
IntroducedMar 13, 2025
Last actionApr 1, 2025
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REPORTED· 119TH CONGRESS · SMALL BUSINESS AND ENTREPRENEURSHIP COMMITTEE · INTRODUCED MAR 13, 2025
Senate BillS 1047Fraud offenses and financial crimesCredit and credit markets
Assisting Small Businesses Not Fraudsters Act
INTRODUCED MAR 13, 2025· LAST ACTION APR 1, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
2
COMPLEXITY
Moderate
