FALSE REPRESENTATIONS.

SEC. 405. FALSE REPRESENTATIONS. (a) Penalty for Misrepresentation.— Section 16(d) of the Small Business Act (15 U.S.C. 645(d)) is amended to read as follows: “(d) (1) Whoever misrepresents the status of any concern or person as a ‘small business concern’ or ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, in order to obtain for oneself or another any— “(A) prime contract to be awarded pursuant to section 9 or 15; “(B) subcontract to be awarded pursuant to section 8(a); “(C) subcontract that is to be included as part or all of a goal contained in a subcontracting plan required pursuant to section 8(d); or “(D) prime or subcontract to be awarded as a result, or in furtherance, of any other provision of Federal law that specifically references section 8(d) 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) be subject to the administrative remedies prescribed by the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801–3812); “(C) be subject to suspension and debarment as specified in subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation) 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; and “(D) be ineligible for participation in any program or activity conducted under the authority of this Act or the Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.) for a period not to exceed 3 years.”. (b) Misrepresentation of Section 7 Compliance.— Section 16 of the Small Business Act (15 U.S.C. 645) is amended by adding at the end thereof the following new subsection: 102 STAT. 3876 “(f) Whoever falsely certifies past compliance with the requirements of section 7(j)(10)(I) of this Act shall be subject to the penalties prescribed in subsection (d).”.