Small Business Lending Fraud Prevention Act
Sponsored By: Representative Meuser, Daniel [R-PA-9]
In Committee
Summary
Preventing conflicts of interest in Small Business Administration lending by requiring staff who personally handle loan origination, review, or approval to certify they have no prohibited conflicts and will disclose and recuse if one appears.
Show full summary
- SBA employees who will personally and substantially originate, review, or approve loans would have to sign a written certification before participating. The certification must state they know of no conflict under 18 U.S.C. § 208 or 5 C.F.R. § 2635.502, that they will immediately disclose any later-discovered conflict, and that they understand applicable federal and SBA conflict rules.
- Small businesses and borrowers would see loan decisions made by staff who have formally declared no conflicts, a step the bill frames as a fraud-prevention measure.
- The SBA Administrator would have to issue implementing regulations within 180 days after enactment, and the certification requirement would begin 270 days after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New conflict rules for SBA staff
This bill would require the SBA to publish implementing rules within 180 days after enactment. Beginning 270 days after enactment, an SBA employee who will personally and substantially participate in originating, reviewing, or approving an SBA loan would have to give a written certification to the Administrator before taking part. The certification would state three things: that to the employee's knowledge no conflict exists under 18 U.S.C. §208 or 5 C.F.R. §2635.502; that the employee will immediately disclose any later-discovered conflict to a supervisor and recuse from the loan; and that the employee understands applicable Federal law and SBA regulations. The bill does not create new funding or list penalties beyond these disclosure and recusal duties.
Sponsors & CoSponsors
Sponsor
Meuser, Daniel [R-PA-9]
PA • R
Cosponsors
Rep. Goodlander, Maggie [D-NH-2]
NH • D
Sponsored 2/5/2026
Roll Call Votes
No roll call votes available for this bill.
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