Congressman Smith: "End Taxpayer Assistance to Chinese Companies"
Today, Congressman Jason Smith (R-MO) introduced the Preventing SBA Assistance from Going to China Act with Senator Marco Rubio (R-FL). 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).
Upon introduction, Smith said, "The fact that your hard-earned dollars would go to propping up businesses in China is unconscionable. It makes no sense. Missouri's small businesses shouldn't be competing for aid with companies whose profits go back to support Communist China," said Congressman Smith. "I am proud to team up with Senator Rubio and follow President Trump's lead in standing up to China and fighting for our small businesses and their workers."
"It's long overdue for Congress to take action to stop Chinese companies from abusing our current system to exploit American small business programs, which are taxpayer subsidized and were created to help spur American ingenuity and boost small businesses," Rubio said. "This bill will ensure that Americans' tax dollars aren't funding the Chinese government and Communist Party's efforts to undermine American industry."
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.