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Summary Provided by Congressional Research Service
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 available text
1. Short title
This Act may be cited as the "Small Business Lending Fraud Prevention Act".
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.Passed the House of Representatives June 24, 2026.Kevin F. McCumber,Clerk.