US Code

Public Law 119-73 (01/23/2026)

15 U.S.C. § 645

Offenses and penalties

(a)

False statements; overvaluation of securities

Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Administration, or for the purpose of obtaining money, property, or anything of value, under this chapter, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both.

(b)

Embezzlement, etc.

Whoever, being connected in any capacity with the Administration, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Administration or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Administration, makes any false entry in any book, report, or statement of or to the Administration, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any unauthorized information concerning any future action or plan of the Administration which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Administration, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

(c)

Concealment, etc.

Whoever, with intent to defraud, knowingly conceals, removes, disposes of, or converts to his own use or to that of another, any property mortgaged or pledged to, or held by, the Administration, shall be fined not more than $5,000 or imprisoned not more than five years, or both; but if the value of such property does not exceed $100, he shall be fined not more than $1,000 or imprisoned not more than one year, or both.

(d)

Misrepresentation, etc.

(1)
Whoever misrepresents the status of any concern or person as a “small business concern”, a “qualified HUBZone small business concern”, a “small business concern owned and controlled by service-disabled veterans”, a “small business concern owned and controlled by veterans”, a “small business concern owned and controlled by socially and economically disadvantaged individuals”, or a “small business concern owned and controlled by women”, in order to obtain for oneself or another any—
(A)
prime contract to be awarded pursuant to section 637, 638, 644, 657a, 657f, or 657f–1 of this title;
(B)
section 637(a) of this title subcontract to be awarded pursuant to ;
(C)
section 637(d) of this title subcontract that is to be included as part or all of a goal contained in a subcontracting plan required pursuant to ; or
(D)
section 637(d) of this title1
1 So in original. Following provision probably should be set flush with par. (1).
prime or subcontract to be awarded as a result, or in furtherance, of any other provision of Federal law that specifically references for a definition of program eligibility, shall be subject to the penalties and remedies described in paragraph (2).
(2)
Any person who violates paragraph (1) shall—
(A)
be punished by a fine of not more than $500,000 or by imprisonment for not more than 10 years, or both;
(B)
2
2 See References in Text note below.
31 U.S.C. 3801–381 be subject to the administrative remedies prescribed by the Program Fraud Civil Remedies Act of 1986  (2);
(C)
be subject to suspension and debarment as specified in subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation); and
(D)
15 U.S.C. 661 be ineligible for participation in any program or activity conducted under the authority of this chapter or the Small Business Investment Act of 1958 ( et seq.) for a period not to exceed 3 years.
(3)

Limitation on liability .—

This subsection shall not apply to any conduct in violation of subsection (a) if the defendant acted in good faith reliance on a written advisory opinion from a Small Business Development Center (as defined in this chapter), or an entity participating in the Procurement Technical Assistance Cooperative Agreement Program defined in chapter 388 of title 10; however nothing in this chapter shall obligate either entity to provide such a letter nor shall the provision of such a letter in any way render the providing entity liable to the business concern should the Administrator later determine that the concern is not a small business concern. Upon issuance of an advisory opinion under this paragraph, the entity issuing the advisory opinion shall remit a copy of the opinion to the General Counsel of the Administration, who may reject the advisory opinion. If the General Counsel of the Administration rejects the advisory opinion, the Administration shall notify the entity issuing the advisory opinion and the recipient of the opinion, after which time the business concern may not rely upon the opinion.
(e)

Representations under subsection (d) to be in writing

Any representation of the status of any concern or person as a “small business concern”, a “HUBZone small business concern”, a “small business concern owned and controlled by service-disabled veterans”, a “small business concern owned and controlled by veterans”, a “small business concern owned and controlled by socially and economically disadvantaged individuals”, or a “small business concern owned and controlled by women” in order to obtain any prime contract or subcontract enumerated in subsection (d) of this section shall be in writing.

(f)

Misrepresentation of compliance with section 636(j)(10)(I)

section 636(j)(10)(I) of this titleWhoever falsely certifies past compliance with the requirements of shall be subject to the penalties prescribed in subsection (d).

(g)

Subcontracting limitations

(1)

In general

section 657s of this titleWhoever violates a requirement established under shall be subject to the penalties prescribed in subsection (d), except that, for an entity that exceeded a limitation on subcontracting under such section, the fine described in subsection (d)(2)(A) shall be treated as the greater of—
(A)
$500,000; or
(B)
the dollar amount expended, in excess of permitted levels, by the entity on subcontractors.
(2)

Monitoring

section 657s of this titleNot later than 1 year after , the Administrator shall take such actions as are necessary to ensure that an existing Federal subcontracting reporting system is modified to notify the Administrator, the appropriate Director of the Office of Small and Disadvantaged Business Utilization, and the appropriate contracting officer if a requirement established under is violated.

Pub. L. 85–536, § 2[16]72 Stat. 395Pub. L. 88–264, § 278 Stat. 8Pub. L. 99–272, title XVIII, § 18009100 Stat. 368Pub. L. 100–656, title IV, § 405102 Stat. 3875Pub. L. 103–355, title VII, § 7106(c)108 Stat. 3376Pub. L. 105–85, div. A, title X, § 1073(g)(4)111 Stat. 1906Pub. L. 105–135, title VI, § 603(c)111 Stat. 2632Pub. L. 112–239, div. A, title XVI126 Stat. 2081Pub. L. 116–283, div. A, title VIII, § 862(d)(2)134 Stat. 3780Pub. L. 117–81, div. A, title XVII, § 1702(e)(6)135 Stat. 2157(, , ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 1652, 1681(a), 1682(a), , , 2085, 2086; , , ; , , .)

Editorial Notes

References in Text

31 U.S.C. 3801–381Pub. L. 99–509100 Stat. 1934section 3801 of Title 31The Program Fraud Civil Remedies Act of 1986 (2), referred to in subsec. (d)(2)(B), subsequently renamed the Administrative False Claims Act, is subtitle B of title VI of , , , which is classified generally to chapter 38 (§ 3801 et seq.) of Title 31, Money and Finance. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 85–69972 Stat. 689section 661 of this titleThe Small Business Investment Act of 1958, referred to in subsec. (d)(2)(D), is , , , which is classified principally to chapter 14B (§ 661 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Prior Provisions

act July 30, 1953, ch. 282, title II67 Stat. 237section 638 of this titlePub. L. 85–536section 637(c) of this titlePub. L. 102–191section 656 of this titlePrior similar provisions were contained in section 209 of , , which was previously classified to . The provisions of section 216 of act , formerly classified to this section, were transferred to section 2[8] of , which was classified to prior to repeal by . See .

Amendments

Pub. L. 116–283, § 862(d)(2)(A)(i)2021—Subsec. (d)(1). , substituted “ ‘small business concern’,” for “ ‘small business concern’,,” and “, a ‘small business concern owned and controlled by service-disabled veterans’, a ‘small business concern owned and controlled by veterans’, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” for “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” in introductory provisions.

Pub. L. 116–283, § 862(d)(2)(A)(ii)Subsec. (d)(1)(A). , substituted “section 637, 638, 644, 657a, 657f, or 657f–1” for “section 638, 644, or 657a”.

Pub. L. 117–81Subsec. (d)(3). substituted “chapter 388” for “chapter 142”.

Pub. L. 116–283, § 862(d)(2)(B)Subsec. (e). , substituted “ ‘small business concern’,” for “ ‘small business concern’,,” and “, a ‘small business concern owned and controlled by service-disabled veterans’, a ‘small business concern owned and controlled by veterans’, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” for “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”.

Pub. L. 112–239, § 1682(a)2013—Subsec. (d)(2)(C). , struck out “on the basis that such misrepresentation indicates a lack of business integrity that seriously and directly affects the present responsibility to perform any contract awarded by the Federal Government or a subcontract under such a contract” after “regulation)”.

Pub. L. 112–239, § 1681(a)Subsec. (d)(3). , added par. (3).

Pub. L. 112–239, § 1652Subsec. (g). , added subsec. (g).

Pub. L. 105–135, § 603(c)(1)(A)1997—Subsec. (d)(1). , inserted “, a ‘qualified HUBZone small business concern’,” after “ ‘small business concern’,”.

Pub. L. 105–85 substituted “concern owned and controlled by women” for “concerns owned and controlled by women”.

Pub. L. 105–135, § 603(c)(1)(B)Subsec. (d)(1)(A). , substituted “section 638, 644, or 657a” for “section 638 or 644”.

Pub. L. 105–135, § 603(c)(2)Subsec. (e). , inserted “, a ‘HUBZone small business concern’,” after “ ‘small business concern’,”.

Pub. L. 105–85 substituted “concern owned and controlled by women” for “concerns owned and controlled by women”.

Pub. L. 103–355, § 7106(c)(1)1994—Subsec. (d)(1). , substituted “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, or a ‘small business concerns owned and controlled by women’ ” for “or ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”.

Pub. L. 103–355, § 7106(c)(2)Subsec. (e). , substituted “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, or a ‘small business concerns owned and controlled by women’ ” for “or ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”.

Pub. L. 100–656, § 405(a)1988—Subsec. (d). , amended subsec. (d) generally, designating existing provisions as par. (1), redesignating former pars. (1) to (4) as subpars. (A) to (D), respectively, and in subpar. (D), substituting “subject to the penalties and remedies described in paragraph (2)” for “punished by a fine of not more than $50,000 or by imprisonment for not more than five years, or both”, and adding par. (2).

Pub. L. 100–656, § 405(b)Subsec. (f). , added subsec. (f).

Pub. L. 99–2721986—Subsecs. (d), (e). added subsecs. (d) and (e).

Pub. L. 88–2641964—Subsec. (c). added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment

Pub. L. 105–135section 3 of Pub. L. 105–135section 631 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1994 Amendment

Pub. L. 103–355section 10001 of Pub. L. 103–355section 8752 of Title 10For effective date and applicability of amendment by , see , set out as a note under , Armed Forces.

Regulations

Pub. L. 112–239, div. A, title XVI, § 1681(b)126 Stat. 2085

15 U.S.C. 645(d)(3)“Not later than 270 days after the date of enactment of this part [], the Administrator of the Small Business Administration shall issue rules defining what constitutes an adequate advisory opinion for purposes of section 16(d)(3) of the Small Business Act [].”
, , , provided that:

Development and Promulgation of Guidance

Pub. L. 112–239, div. A, title XVI, § 1682(b)126 Stat. 2086

“Not later than 270 days after the date of enactment of this part [], the Administrator of the Small Business Administration shall develop and promulgate guidance implementing this section [amending this section and enacting provisions set out as a note below].”
, , , provided that:

Publication of Procedures Regarding Suspension and Debarment

Pub. L. 112–239, div. A, title XVI, § 1682(c)126 Stat. 2086

“Not later than 270 days after the date of enactment of this part [], the Administrator [of the Small Business Administration] shall publish and maintain on the [Small Business] Administration’s Web site the current standard operating procedures of the Administration for suspension and debarment, and the name and contact information for the individual designated by the Administrator as the senior individual responsible for suspension and debarment proceedings.”
, , , provided that: