Preventing SBA Assistance from Going to China Act

119th Congress Introduced by Jim Baird and 8 co-sponsors

HR 1081 prohibits the SBA from aiding businesses owned or controlled by Chinese entities, ensuring federal support strengthens American small businesses and the economy.

Introduced in House

# Summary of HR 1081: Preventing SBA Assistance from Going to China Act ## Bill Overview - **Bill Number**: HR 1081 - **Title**: Preventing SBA Assistance from Going to China Act - **Status**: Introduced in House - **Introduced**: March 13, 2025 - **Sponsor**: Representative McCullough ## Purpose and Intent The **Preventing SBA Assistance from Going to China Act** aims to prohibit the Small Business Administration (SBA) from providing financial assistance or support to businesses that are owned or controlled by entities based in China. The intent of the bill is to protect American small businesses and ensure that federal resources are not allocated to foreign entities that may pose economic or security risks to the United States. ## Key Provisions - **Prohibition of Assistance**: The bill explicitly states that the SBA shall not provide any form of financial assistance, including loans, grants, or contracts, to businesses that are owned or controlled by Chinese entities. - **Definition of Ownership**: The bill outlines specific criteria for determining ownership and control, ensuring clarity on which businesses would be affected. - **Reporting Requirements**: The SBA would be required to report annually on the number of applications received from businesses that fall under the defined criteria and the actions taken regarding those applications. ## Affected Parties - **Small Businesses**: The primary focus of the bill is on small businesses in the United States that may be competing for federal assistance. - **Chinese Entities**: Businesses owned or controlled by Chinese entities would be directly impacted, as they would be ineligible for SBA assistance. - **U.S. Economy**: The bill aims to bolster the domestic economy by ensuring that federal resources are directed towards American-owned businesses. ## Procedural Aspects - **Legislative Timeline**: - **March 13, 2025**: Bill introduced and read for the first time. - **March 17, 2025**: Returned by the Committee with a "Do Pass" recommendation. - **March 19, 2025**: Bill read and adopted by the House. ## Conclusion HR 1081 seeks to safeguard American small businesses from foreign competition by restricting SBA assistance to those entities owned or controlled by Chinese interests. This legislation reflects ongoing concerns about economic security and the integrity of federal support systems for small businesses in the United States.