HR7401
Referred to committee
Small Business Lending Fraud Prevention Act
- Federal
- House
- Introduced Feb 5, 2026
- Session 119
Bill Text
Version EHThis Act may be cited as the Small Business Lending Fraud Prevention Act.
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—
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;
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
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.
Not later than 180 days after the date of enactment, the Administrator shall issue regulations implementing this Act.
In this Act:
The term Administration means the Small Business Administration.
The term Administrator means the Administrator of the Administration.
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—
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;
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
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.
Not later than 180 days after the date of enactment, the Administrator shall issue regulations implementing this Act.
In this Act:
The term Administration means the Small Business Administration.
The term Administrator means the Administrator of the Administration.
Legislative Timeline
17 actions-
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
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Considered as unfinished business. (consideration: CR H4226-4227)
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Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 415 - 0, 1 Present (Roll no. 225).
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On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 415 - 0, 1 Present (Roll no. 225).
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Motion to reconsider laid on the table Agreed to without objection.
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Mr. Williams (TX) moved to suspend the rules and pass the bill.
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Considered under suspension of the rules. (consideration: CR H4140-4141; text: CR H4140)
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DEBATE - The House proceeded with forty minutes of debate on H.R. 7401.
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At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Williams (TX) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
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Reported by the Committee on Small Business. H. Rept. 119-500.
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Reported by the Committee on Small Business. H. Rept. 119-500.
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Placed on the Union Calendar, Calendar No. 426.
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Committee Consideration and Mark-up Session Held
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Ordered to be Reported by the Yeas and Nays: 24 - 0.
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Introduced in House
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Introduced in House
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Referred to the House Committee on Small Business.