HR-7401 — Small Business Lending Fraud Prevention Act

YourVoice.Now Summary

Transparency & Accountability

Requires SBA employees to certify in writing that they have no conflict of interest before handling any SBA loan decision.

Transparency & Accountability

Employee conflict-of-interest certification — SBA loan staff must certify in writing that no prohibited conflicts exist before each loan origination, review, or approval

The details

Before participating in the origination, review, or approval of any SBA loan, agency employees must sign a written certification that they have no conflict of interest under existing federal ethics laws. If an employee later discovers a conflict they were not aware of when they certified, they must immediately tell their supervisor and remove themselves from the loan decision. The SBA has 180 days to write implementing regulations, and the certification requirement takes effect 270 days after enactment.

Congressional Summary

Small Business Lending Fraud Prevention ActThis bill requires Small Business Administration (SBA) employees who participate in the origination, review, or approval of SBA loans to certify in writing prior to such participation that the employee does not have any conflict of interest with respect to the loan, will disclose any such conflict of interest arising after the certification is made, andunderstands the requirements with respect to conflicts of interest applicable SBA employees.Under current law, federal employees must disclose financial conflicts of interest with respect to a particular matter and recuse themselves from such matter (with limited exceptions upon authorization from the employee's agency designee).The SBA must issue regulations implementing the requirements of this bill.

Legislative Subjects

Administrative law and regulatory proceduresGovernment employee pay, benefits, personnel managementGovernment ethics and transparency, public corruptionSmall Business Administration

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Reported to House
Action Date: 2026-02-20
Date Added: 2026-06-19
Source: Congress.gov →

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