S. 4952

Protecting American Taxpayers Act

Sponsor: Joni Ernst

29 cosponsors
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A Recovering stolen funds

I Improper Payments

II Assisting Small Businesses Not Fraudsters

Sec. 1202. Assistance prohibited after fraud conviction

(a) In general. Section 16 of the Small Business Act (15 U.S.C. 645) is amended by adding at the end the following:

Text this section adds to the law

(h) Financial assistance prohibition

(1) In general. An associate of a small business concern who is finally convicted of any crime involving or relating to financial misconduct or a false statement with respect to a covered loan or grant shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).

(2) Business concerns. A small business concern that has as an associate an individual subject to paragraph (1) shall be ineligible to receive any financial assistance from the Administrator, other than financial assistance under section 7(b).

(3) Definitions. In this subsection:

(A) Associate. The term associate means, with respect to a small business concern—

(i) an officer, director, or owner of more than 20 percent of the equity of, or a key employee of, such small business concern;

(ii) any entity not less than 20 percent owned or controlled by one or more individuals referred to in clause (i); and

(iii) any other individual or entity in control of or controlled by such small business concern, except for a licensed small business investment company (as defined in section 103(3) of the Small Business Investment Act of 1958 (15 U.S.C. 662(3))).

(B) Covered loan or grant. The term covered loan or grant means—

(i) a loan made under—

(I) paragraph (36) or (37) of section 7(a); or

(II) section 7(b) in response to the COVID–19 pandemic; or

(ii) a grant made under—

(I) section 5003 of the American Rescue Plan Act of 2021 (15 U.S.C. 9009c); or

(II) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 9009a).

(C) Finally convicted. The term finally convicted means, with respect to a person, that such person has been convicted of an offense and such conviction—

(i) has not been appealed and is no longer appealable because the time for taking an appeal has expired; or

(ii) has been appealed and the appeals process for such conviction is completed.

(b) Applicability. Subsection (h) of section 16 of the Small Business Act (15 U.S.C. 645), as added by subsection (a) of this section, shall not apply to any contract or other agreement entered into by the Government prior to the date of enactment of this Act.

III Welfare Abuse and Laundering Zillions

IV Returning Unspent COVID Funds

V Bonuses for cost-cutters

VI Improper payments transparency

B Protecting taxpayers

I Strengthening TANF Program Integrity

II Restriction on United States assistance for foreign agents

III Opposing international support for the Taliban

C Catching fraudsters

I Preventing deep fake scams

II SBA Fraud Enforcement Extension Act

III Recover Fraudulent COVID Funds

IV Fraud Alert Systems

V Stopping Transfers of Public Funds Abroad

VI Veterans Scam and Fraud Evasion Act of 2026

VII Expanding Whistleblower Protections for Contractors Act of 2026

D Severability