Small Business Lending Fraud Prevention Act
Small Business Administration employees who handle, review, or approve loans will be required to certify in writing that they have no personal or financial conflicts of interest before working on an application. If an employee later discovers a conflict, they must immediately notify their supervisor and step away from that loan decision. This requirement aims to prevent government staff from steering public loans toward their own financial interests, relatives, or business partners.
What this bill touches.
Who it helps · who it burdens.
Who it burdens
- Small Business Administration loan-processing employeesMust submit written certifications before participating in loan origination, review, or approval confirming they have no prohibited conflicts of interest, understand federal ethics rules, and agree to disclose and recuse themselves if a conflict arises.
- Small Business AdministrationRequired to establish and issue implementing regulations within 180 days of enactment to administer the new conflict-of-interest certification requirements.
The provisions, in plain language.
Requires Small Business Administration employees who help process, review, or approve loans to certify in writing—starting 270 days after enactment—that they do not have a prohibited conflict of interest, will immediately report and recuse themselves if a conflict arises, and understand federal ethics rules.
Directs the Small Business Administration to issue regulations within 180 days of enactment to carry out the conflict-of-interest certification requirements.
How your members of Congress line up
How members voted on Small Business Lending Fraud Prevention Act.
Recorded roll calls on this bill, most recent first. Open one to see each member's position.
How it moved.
Show all 15 actions
- Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Motion to reconsider laid on the table Agreed to without objection.
- 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).
- 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).
- Considered as unfinished business. (consideration: CR H4226-4227)
- 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.
- DEBATE - The House proceeded with forty minutes of debate on H.R. 7401.
- Considered under suspension of the rules. (consideration: CR H4140-4141; text: CR H4140)
- Mr. Williams (TX) moved to suspend the rules and pass the bill.
- Placed on the Union Calendar, Calendar No. 426.
- Reported by the Committee on Small Business. H. Rept. 119-500.
- Ordered to be Reported by the Yeas and Nays: 24 - 0.
- Committee Consideration and Mark-up Session Held
- Referred to the House Committee on Small Business.
- Introduced in House
- Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Motion to reconsider laid on the table Agreed to without objection.
- 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).
- 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).
- Reported by the Committee on Small Business. H. Rept. 119-500.
- Ordered to be Reported by the Yeas and Nays: 24 - 0.
- Introduced in House
Read it for yourself.
Sources & provenance
Cite this page
Civic Herald. “Small Business Lending Fraud Prevention Act (H.R. 7401, 119th Congress).” https://civicherald.app/bills/119-hr-7401. Congress.gov record as of Jul 15, 2026.