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Congress·Reported·10 days ago

Small Business Administration: New Conflict of Interest Rules for Loans

Also known as: Small Business Lending Fraud Prevention Act

Legislative Progress

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Key Points

  • This bill requires employees at the Small Business Administration (SBA) to sign a written statement before they work on any government loan. They must promise they do not have any personal or financial conflicts of interest that would make their work unfair.
  • If an employee discovers a conflict of interest after they start working on a loan, they must tell their supervisor immediately. They are then required to step away from that loan process to ensure the decision stays neutral.
  • The policy aims to prevent fraud and corruption by making sure government workers aren't helping themselves, friends, or family members get taxpayer-funded loans. It adds a formal step to hold workers accountable for following ethics laws.
  • If passed, the SBA would have about six months to create the new rules. Employees would be required to start signing these conflict-of-interest forms roughly nine months after the bill is signed into law.

Milestones

4 milestones6 actions
Feb 20, 2026House

Placed on the Union Calendar, Calendar No. 426.

Feb 20, 2026House

Reported by the Committee on Small Business. H. Rept. 119-500.

Feb 11, 2026House

Ordered to be Reported by the Yeas and Nays: 24 - 0.

Feb 11, 2026House

Committee Consideration and Mark-up Session Held

Feb 5, 2026House

Referred to the House Committee on Small Business.

Source Information

Document Type

Congressional Bill

Official Title

Small Business Lending Fraud Prevention Act

Bill NumberHR 7401
Congress119th Congress
ChamberHouse of Representatives
Latest ActionPlaced on the Union Calendar, Calendar No. 426.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.