1. 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 new subsection: (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 subsection (a) of section 7 of the Small Business Act ( 15 U.S.C. 636 ); or (II) subsection (b) of such section 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 )