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Congress·Reported·H.R. 7401

Small Business Lending Fraud Prevention Act

Small Business Administration: New Conflict of Interest Rules for Loans

Legislative Progress

House
Senate
President
Law

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.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

4 milestones6 actions
Feb 20, 2026House

Placed on the Union Calendar, Calendar No. 426.

The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.

Feb 20, 2026House

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

The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.

Feb 11, 2026House

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

The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.

Feb 11, 2026House

Committee Consideration and Mark-up Session Held

Feb 5, 2026House

Referred to the House Committee on Small Business.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

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. Always verify with official sources.