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Congress·Passed House·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 milestones15 actions
Jun 24, 2026House

Motion to reconsider laid on the table Agreed to without objection.

Jun 24, 2026House

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).

The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.

Jun 24, 2026

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).

The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.

Jun 24, 2026House

Considered as unfinished business.

Jun 23, 2026House

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 The point of no quorum was considered as withdrawn.

The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.

Vote Results

1 vote
HousePassedProceduralJun 24, 2026

On Motion to Suspend the Rules and Pass

415
0
Democrat
2050 · 7
Republican
2090 · 9
Independent
10
View full roll call

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 ActionMotion to reconsider laid on the table Agreed to without objection.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. Always verify with official sources.