Small Business Lending Fraud Prevention Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7401 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7401

 To require employees of the Small Business Administration to certify
 that the employee does not have any prohibited conflicts of interest
with respect to loans in which the employee is involved, and for other
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2026

 Mr. Meuser (for himself and Ms. Goodlander) introduced the following
      bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL

 To require employees of the Small Business Administration to certify
 that the employee does not have any prohibited conflicts of interest
with respect to loans in which the employee is involved, and for other
                               purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Lending Fraud
Prevention Act''.

SEC. 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.
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