Small Business Lending Fraud Prevention Act

Sponsor: Daniel Meuser (Republican-PA)February 5, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Placed on the Union Calendar, Calendar No. 426.

Requires SBA employees to certify they have no conflicts of interest when handling small business loans.

This bill would require employees at the Small Business Administration (SBA) to confirm they don't have any personal conflicts of interest when they work on small business loans. This change aims to prevent fraud and would affect SBA staff who review or approve these loans. It would also require the SBA to create new rules to put this system in place.

What Would Change

Today, Small Business Administration employees follow general federal rules about conflicts of interest. After this bill, employees who personally work on creating, reviewing, or approving a loan would specifically have to certify in writing that they have no prohibited conflicts of interest. They would also be required to immediately report any new conflicts and step away from the loan.

Key Provisions

Requires Small Business Administration employees who work on loans to sign a written statement saying they have no prohibited conflicts of interest.
Requires Small Business Administration employees to immediately tell their supervisor and step away from a loan if they learn about a conflict of interest after signing their certification.
Requires the head of the Small Business Administration to create new rules to put this law into action within 180 days of it becoming law.

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HR 7401 · 119th Congress · February 5, 2026 · AI Summary by gemini-2.5-flash · 8/10

Small Business Lending Fraud Prevention Act

What Would Change

Key Provisions

Lobbying Activity