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.