Small Business Lending Fraud Prevention Act

Hozzl · 2026-07-07T20:23:00Z

Explore the details of House Bill 7401 Small Business Lending Fraud Prevention Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Commerce. Stay informed on legislative developments.

7/7/2026, 8:23 PM

Summary of Bill HR 7401

The bill "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" was introduced in the 119th Congress as H.R. 7401 on February 5, 2026.

Congressional Summary of HR 7401

Small Business Lending Fraud Prevention Act

This bill requires Small Business Administration (SBA) employees who participate in the origination, review, or approval of SBA loans to certify in writing prior to such participation that the employee

does not have any conflict of interest with respect to the loan,
will disclose any such conflict of interest arising after the certification is made, and
understands the requirements with respect to conflicts of interest applicable SBA employees.

Under current law, federal employees must disclose financial conflicts of interest with respect to a particular matter and recuse themselves from such matter (with limited exceptions upon authorization from the employee's agency designee).

The SBA must issue regulations implementing the requirements of this bill.

Read the Full Bill

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Current Status of Bill HR 7401

Bill HR 7401 is currently in the status of Passed in House since June 24, 2026. Bill HR 7401 was introduced during Congress 119 and was introduced to the House on February 5, 2026. Bill HR 7401's most recent activity was Motion to reconsider laid on the table Agreed to without objection. as of June 24, 2026

Bipartisan Support of Bill HR 7401

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 7401

Primary Policy Focus

Commerce

Alternate Title(s) of Bill HR 7401

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.

Comments

Declan Bowden

941

5 months ago

I support this bill, it will help stop bad stuff.

Mikayla Creech

894

4 months ago

So glad they finally passed this bill to crack down on small business lending fraud! About time they did something about it. But I wonder, what will the long term effects be on our economy? #HR7401 #SmallBusinessFraudPreventionAct