SBA Assistance Blocked: New Bill Permanently Bars Individuals with Riot or Officer Assault Convictions from Small Business Aid

The aptly named “Stop Funding Rioters Act” is a short bill with a massive punch, redefining who can access assistance from the Small Business Administration (SBA). If you’ve ever planned to start a business or needed a federal loan to keep your doors open, this bill is about to make the eligibility rules a lot tighter based on your criminal history.

The New Permanent Exclusion Zone

This legislation creates a permanent exclusion zone from all SBA assistance—loans, grants, and programs—for anyone convicted of two specific types of offenses. First, if you have a conviction for misdemeanor or felony assault against a law enforcement officer, you are permanently ineligible. Second, if you have a felony conviction committed during or connected to a riot that resulted in the destruction of a small business concern, you are also permanently barred. That’s it. No SBA help, ever again. This isn't just about loans; it’s about access to vital resources like training, disaster relief, and specialized government contracting programs.

Small Business Dreams and Past Mistakes

For most people aged 25 to 45, starting a business is already a high-wire act involving massive personal risk. The SBA is often the safety net or the launchpad. This bill effectively pulls that net away from a specific group of formerly incarcerated individuals. Think about someone who served their time, paid their debt to society, and is now trying to rebuild their life by opening a small repair shop or a consulting firm. If they have a past misdemeanor conviction for assault on an officer, even if it happened years ago and was related to a minor incident, they are locked out of the primary federal resource designed to support economic reentry and entrepreneurship.

The Long Shadow of a Misdemeanor

The most striking part of this bill is the inclusion of misdemeanor assault against a law enforcement officer. Misdemeanors are generally considered less severe offenses, often resulting in short jail time or probation. Under this bill, that single misdemeanor conviction could mean a lifetime ban from accessing the economic tools needed to start a business. This goes far beyond typical sentencing and introduces a permanent, secondary economic penalty. It raises questions about rehabilitation and whether the goal is to permanently restrict economic opportunity for certain individuals, even those who committed a relatively minor offense years ago.

The Riot Provision: Connecting Crime and Commerce

The second exclusion focuses on felonies committed during a riot that resulted in the destruction of a small business. While the intent here appears to be protecting the small business community from those who actively destroy it, the language can be broad. The conviction must be a felony, and it must be connected to a riot where a small business concern was destroyed. This provision means that if a person was convicted of a felony like theft or vandalism during civil unrest where damage occurred, they are barred from future SBA assistance. The key here is the link between the criminal act and the resulting destruction, creating a clear line between the crime and the economic harm it caused.