WASHINGTON – Sen. John Kennedy (R-La.) today joined Sen. Marco Rubio (R-Fla.) in reintroducing the Preventing Small Business Administration (SBA) Assistance from Going to China Act, which would stop the SBA from assisting companies with significant Chinese ownership.
“China preys on America’s commitment to our small businesses, siphoning financial support away from American employers and workers. 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,” said Kennedy.
“American businesses are no stranger to the wide range of strategies Chinese firms use to starve out their competition. 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,” said Rubio.
Because the SBA can provide assistance to any qualifying small business that is legally operating in the U.S., firms that are owned by or affiliated with the Chinese Communist Party are able to exploit the system and receive benefits at the expense of American taxpayers. This legislation would prevent SBA loans and guarantees from aiding small businesses that are headquartered in China or that have at least a quarter of their voting stock owned by Chinese investors.
Rep. Jason Smith (R-Mo.) will introduce companion legislation in the House.