UPDATED 2:42 PM PT – Thursday, March 25, 2021
A group of Republican senators put forth legislation to crack down on Chinese companies tied to the Communist Party.
Sen. Marco Rubio (R-Fla.) introduced the bill to prevent Small Business Administration funds from going to Chinese citizens as part of economic stimulus efforts.
The bill would halt SBA loans from going to companies that are headquartered in Mainland China and have more than 25 percent of their stock in the hands of Chinese citizens.
Rubio said SBA funds must support American businesses, instead of reinforcing the unfair advantage of Chinese firms.
“The new administration has unfairly and unnecessarily restricted eligible businesses and nonprofits from applying. It’s created confusion,” Rubio stated. “People came to the conclusion that it was being used arbitrarily to give priority to politically favored groups. So all this amendment does is it prohibits the Small Business Administration from setting up any new set asides beyond those that this Congress on a bipartisan basis already created.”
According to Horizon Advisory, at least 125 companies owned and controlled by China received SBA and treasury loans amounting to $419 million. Rubio said this must stop.