WASHINGTON, D.C. — Congressman Jason Smith reintroduced the Preventing SBA Assistance from Going to China Act, which would block all assistance offered by the Small Business Administration (SBA) from going to citizens of the People’s Republic of China (PRC). Because current law permits the SBA to provide assistance to any qualifying small business that is legally operating in the United States, Chinese-owned or -affiliated firms are able to exploit the system and receive benefits. This legislation would prohibit assistance from going to any small business headquartered in the PRC or that has at least 25 percent of its voting stock in the hands of PRC investors. Senator Marco Rubio introduced companion legislation in the Senate.
“Ensuring that federal assistance goes to Main Street businesses over Chinese-owned companies is a no-brainer,” said Rep. Smith. “When the American working class is on a level playing field, they can compete against anyone in the world. I’m proud to join Senator Rubio in putting America First by sponsoring the Preventing SBA Assistance from Going to China Act.”
“American businesses are no stranger to the wide range of strategies Chinese firms use to starve out their competition,” Rubio said. “Exploiting taxpayer-subsidized SBA programs designed to boost our small businesses is among the most egregious. This legislation would ensure that U.S. tax dollars aren’t giving Chinese firms an unfair advantage over American small businesses.”
“China preys on America’s commitment to our small businesses, siphoning financial support away from American employers and workers,” Senator John Kennedy (R-LA) said. “I’m proud to join Sen. Rubio in introducing the Preventing Small Business Administration Assistance from Going to China Act to block companies with significant Chinese ownership from getting loans and guarantees from the SBA.”
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