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The House unanimously passed the Assisting Small Businesses Not Fraudsters Act, which bars individuals convicted of pandemic-related fraud from receiving future SBA assistance.
This bill, H.R. 825, prevents individuals and businesses from receiving financial assistance from the Small Business Administration (SBA) if they have been convicted of fraud involving COVID-19 relief programs. The ban applies to owners, officers, and directors convicted of financial misconduct or making false statements related to pandemic aid like the Paycheck Protection Program (PPP) or Economic Injury Disaster Loans (EIDL). The vote was held under a procedure called 'suspension of the rules.' This is a fast-track method used for bills that have broad support and are not expected to be controversial. While it limits the time for debate and prevents any changes (amendments) from being made to the bill on the floor, it requires a higher standard to pass: a two-thirds supermajority rather than a simple majority. The measure passed with a unanimous 405-0 vote, demonstrating total agreement across party lines to prevent further misuse of taxpayer funds. The bill now moves to the Senate for further consideration. If it becomes law, it will close loopholes that currently allow those who defrauded the government during the pandemic to apply for other types of SBA support.
The bill has been sent to the Senate and referred to the Committee on Small Business and Entrepreneurship.
OPEN BILL →Why it matters. This bill addresses public concerns about the theft of taxpayer funds during the pandemic by ensuring that proven fraudsters cannot return to the SBA for more financial aid.
Who’s affected. Convicted Fraudsters: Specifically individuals with pandemic-related financial convictions are barred from future SBA loans. · Small Business Administration: Must enforce stricter vetting and exclusion rules for applicants. · Taxpayers: Increases accountability for federal relief programs by preventing repeat fraud.
Democrats. The Democratic caucus was united in support, with all 95 voting members casting 'yea' votes.
Republicans. The Republican caucus supported the bill unanimously, with all 185 voting members casting 'yea' votes.
On Motion to Suspend the Rules and Pass
Feb 24, 2025
The House unanimously passed the Assisting Small Businesses Not Fraudsters Act, which bars individuals convicted of pandemic-related fraud from receiving future SBA assistance.
This vote used 'suspension of the rules,' a common House practice for non-controversial legislation. This process bypasses certain procedural steps to speed up passage but requires a two-thirds majority (270 votes in this case) to succeed.
The bill has been sent to the Senate and referred to the Committee on Small Business and Entrepreneurship.
This bill addresses public concerns about the theft of taxpayer funds during the pandemic by ensuring that proven fraudsters cannot return to the SBA for more financial aid.
Both parties supported the measure unanimously, with zero members voting against the bill.
The Democratic caucus was united in support, with all 95 voting members casting 'yea' votes.
The Republican caucus supported the bill unanimously, with all 185 voting members casting 'yea' votes.
The chamber's lone independent member voted in favor of the bill.