[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7401 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
  2d Session
                                H. R. 7401


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 13, 2026

 Received; read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 AN ACT


 
 To require employees of the Small Business Administration to certify 
 that the employee does not have any prohibited conflicts of interest 
with respect to loans in which the employee is involved, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Lending Fraud 
Prevention Act''.

SEC. 2. SMALL BUSINESS ADMINISTRATION EMPLOYEE CONFLICT OF INTEREST 
              CERTIFICATION.

    (a) In General.--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--
            (1) 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;
            (2) 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
            (3) 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.
    (b) Regulations.--Not later than 180 days after the date of 
enactment, the Administrator shall issue regulations implementing this 
Act.
    (c) Definitions.--In this Act:
            (1) Administration.--The term ``Administration'' means the 
        Small Business Administration.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Administration.

            Passed the House of Representatives June 24, 2026.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.