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US Congress · H.R. 7401 · Passed the House

Small Business Lending Fraud Prevention Act

Introduced
Moved
Reached a final decision
Introduced 2026-02-05
Derived from the official record below.

Officially: “Small Business Lending Fraud Prevention Act Read the full text

Commerce

What it does

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 partic
Summary by the Congressional Research Service, from the official record. Plain-language version below. Not legal advice.

Read it in plain language

AI plain language2 sections
Written by AI from the complete official bill text and independently fact-checked against it. Not legal advice.
1Short title

This section would let the Act be cited as the Small Business Lending Fraud Prevention Act.

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Official text, verbatim from the record

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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Official text, verbatim from the record

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.

AI plain languageRead the whole bill in plain language, 2 sections

Where it is

Introduced · 2026-02-05

In the House.

Passed the House · 2026-06-24
Senate floor vote · next · the next step

Official documents

The on-site text is shown verbatim from the GovInfo publication, captured 2026-07-23. The same version at GovInfo.

The numbers

29%
of bills that passed one chamber became law in the 118th Congress, 2023 to 2024 (n=939)
2
sponsors, out of 218 needed to pass
Every fact on this page links to its source, starting with the official bill record. Last action: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship. (2026-07-13).