H.R. 7401 · Passed House · Commerce

Small Business Lending Fraud Prevention Act

Sponsor: Daniel Meuser (R-PA)

What it does

• Require SBA employees involved in originating, reviewing, or approving SBA loans to certify in writing that they have no conflicts of interest before participating in the loan process.
• Mandate disclosure of any conflicts of interest that arise after the initial certification is made.
• Direct the SBA to issue regulations implementing the conflict-of-interest certification and disclosure requirements for affected employees.

Official summary

Small Business Lending Fraud Prevention Act This 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, and understands 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.

Latest action

Jul 13, 2026: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Committee: Senate Small Business and Entrepreneurship