Small Business Lending Fraud Prevention Act
Officially: “Small Business Lending Fraud Prevention Act” Read the full text
What it does
Read it in plain language
1Short title
This section would let the Act be cited as the Small Business Lending Fraud Prevention Act.
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1. Short title This Act may be cited as the Small Business Lending Fraud Prevention Act .
2Small Business Administration employee conflict of interest certification
Starting 270 days after this Act becomes law, this section would require any Small Business Administration employee who will personally and substantially take part in originating, reviewing, or approving a loan administered by the Administration to certify in writing to the Administrator, before taking part in that loan, that the employee: (1) to their knowledge has no conflict of interest that section 208 of title 18 of the United States Code or section 2635.502 of title 5 of the Code of Federal Regulations prohibits with respect to that participation; (2) will immediately disclose any such conflict of interest they learn about after certifying to that employee's supervisor, and will recuse themselves from that loan; and (3) understands the federal law and Administration regulations that apply to them on conflicts of interest for that participation. This section would also require the Administrator of the Small Business Administration to issue regulations implementing the Act no later than 180 days after enactment. It would define the Administration as the Small Business Administration and the Administrator as the Administrator of the Small Business Administration.
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2. Small Business Administration employee conflict of interest certification (a) In general Beginning on the date that is 270 days after the date of the enactment of this Act, an employee of the Administration that will personally and substantially participate in the origination, review, or approval of a loan administered by the Administration shall, prior to such participation in such loan, certify to the Administrator in writing that such employee— (1) to their knowledge, does not have any conflict of interest prohibited under section 208 of title 18, United States Code, or section 2635.502 of title 5, Code of Federal Regulations, with respect to such participation in such loan; (2) upon learning of any such conflict of interest after submitting such certification, will immediately disclose such conflict of interest to the supervisor of such employee and recuse themselves from participating in such loan; and (3) understands the requirements applicable to such employee under Federal law and regulations of the Administration regarding conflicts of interest with respect to such participation in such loan. (b) Regulations Not later than 180 days after the date of enactment, the Administrator shall issue regulations implementing this Act. (c) Definitions In this Act: (1) Administration The term Administration means the Small Business Administration. (2) Administrator The term Administrator means the Administrator of the Administration.
Where it is
In the House.