Small Business Lending Fraud Prevention Act

This bill would require Small Business Administration (SBA) employees involved in the loan process to provide a written certification regarding potential conflicts of interest before participating in the origination, review, or approval of a loan. These employees would be required to disclose any conflicts that arise after the initial certification and acknowledge their understanding of existing federal conflict-of-interest regulations. Additionally, the SBA would be tasked with issuing new regulations to implement these specific oversight requirements.

This bill directly affects employees of the Small Business Administration (SBA) who are involved in the origination, review, or approval of SBA loans. These individuals are required to provide written certifications regarding the absence of conflicts of interest and must disclose any such conflicts that arise during the loan process. Additionally, the SBA as an agency is affected, as it must issue and implement new regulations to enforce these certification requirements.

• Mandatory conflict of interest certifications. Small Business Administration (SBA) employees involved in the origination, review, or approval of loans must certify in writing that they have no conflicts of interest regarding the specific loan.
• Ongoing disclosure and compliance requirements. Participating employees must agree to disclose any conflicts of interest that arise after their initial certification and acknowledge their understanding of all applicable SBA conflict of interest regulations.
• Regulatory implementation by the SBA. The Small Business Administration is required to issue formal regulations to implement and enforce these new conflict of interest certification and disclosure requirements.

• H.R. 7401, Small Business Lending Fraud Prevention Act
  Apr 14, 2026 · As reported by the House Committee on Small Business on February 20, 2026

This bill supplements existing federal ethics requirements that mandate employees disclose financial conflicts of interest and recuse themselves from affected matters. It specifically directs the Small Business Administration to implement new regulations requiring written certifications from employees involved in the loan approval process.

The bill aims to prevent fraud and manage conflicts of interest within Small Business Administration (SBA) lending programs by requiring employees involved in the loan process to provide written certifications regarding their financial interests and adherence to federal ethics requirements.