Preventing SBA Assistance from Going to China Act

HR 1081, the Preventing SBA Assistance from Going to China Act, amends the Small Business Act to bar certain businesses from qualifying as small business concerns for SBA programs. It prohibits businesses located or incorporated in China, or those with over 25% voting stock owned by Chinese affiliates, from accessing SBA loans, contracts, or other assistance. This directly affects U.S. businesses with significant Chinese ownership or ties that would otherwise qualify for federal small business support. The key mechanism is a new definition in the law that blocks eligibility based on foreign ownership or location.