Congressman Smith: “End Taxpayer Assistance to Chinese Companies”

Congressman Jason Smith introduced the Preventing SBA Assistance from Going to China Act with Senator Marco Rubio. This legislation prevents businesses owned by citizens of the People’s Republic of China or headquartered in China from receiving any taxpayer funded assistance offered by the U.S. Small Business Administration (SBA). Under current law, Chinese-owned businesses qualifying as small business and legally operate in the United States are eligible for assistance from the SBA. This allows Chinese-owned businesses to secure various types of aid from the SBA, including federally guaranteed loans, disaster assistance, grant programs, and surety bonds. The Preventing SBA Assistance from Going to China Act would prohibit the SBA from providing aid, counsel, or assistance to any small business that is either headquartered in China, or has more than 25 percent voting stock owned by citizens of China. This legislation will ensure that SBA aid is available to only U.S. small businesses.