H.R. 7401 (119th Congress): Employees of the Small Business Administration, Prohibited Conflicts of Interest
Summary
H.R. 7401, as introduced in the House of Representatives on February 5, 2026 by Mr. Meuser for himself and Ms. Goodlander and referred to the Committee on Small Business, would require Small Business Administration employees to certify that they have no prohibited conflicts of interest in loans they work on. Beginning 270 days after enactment, an employee who will personally and substantially take part in originating, reviewing or approving an SBA loan must first certify in writing that, to their knowledge, they have no conflict barred by section 208 of title 18 or section 2635.502 of title 5 of the Code of Federal Regulations. They must disclose any later conflict to a supervisor and recuse, and confirm they understand the rules. The Administrator must issue regulations within 180 days.
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- Issuer
- Congressional materials
- Document type
- 407379 2026 02 09 Committee On Small Business Activity The Week Of F Att0
- Date
- 2026-02-09
- Case
- 407379 2026 02 09 Committee On Small Business Activity The Week Of F Att0
Cite this document
“H.R. 7401 (119th Congress): Employees of the Small Business Administration, Prohibited Conflicts of Interest.”
Dated 2026-02-09. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-02-09-407379-2026-02-09-committee-on-small-business-activity-the-week-of-f-att0/
, SHA-256 df39d910da5de96b7509f30aee7b57ea3f6892899a6f10ae55446ed4464e67ce.Full text
I
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 pur-
poses.
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.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Small Business Lend-
5 ing Fraud Prevention Act’’.
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1 SEC. 2. SMALL BUSINESS ADMINISTRATION EMPLOYEE
2 CONFLICT OF INTEREST CERTIFICATION.
3 (a) IN GENERAL.—Beginning on the date that is 270
4 days after the date of the enactment of this Act, an em-
5 ployee of the Administration that will personally and sub-
6 stantially participate in the origination, review, or ap-
7 proval of a loan administered by the Administration shall,
8 prior to such participation in such loan, certify to the Ad-
9 ministrator in writing that such employee—
10 (1) to their knowledge, does not have any con-
11 flict of interest prohibited under section 208 of title
12 18, United States Code, or section 2635.502 of title
13 5, Code of Federal Regulations, with respect to such
14 participation in such loan;
15 (2) upon learning of any such conflict of inter-
16 est after submitting such certification, will imme-
17 diately disclose such conflict of interest to the super-
18 visor of such employee and recuse themselves from
19 participating in such loan; and
20 (3) understands the requirements applicable to
21 such employee under Federal law and regulations of
22 the Administration regarding conflicts of interest
23 with respect to such participation in such loan.
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24 (b) REGULATIONS.—Not later than 180 days after
25 the date of enactment, the Administrator shall issue regu-
26 lations implementing this Act.
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1 (c) DEFINITIONS.—In this Act:
2 (1) ADMINISTRATION.—The term ‘‘Administra-
3 tion’’ means the Small Business Administration.
4 (2) ADMINISTRATOR.—The term ‘‘Adminis-
5 trator’’ means the Administrator of the Administra-
6 tion.
Æ
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