Small Business Lending Fraud Prevention Act

What it does

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.

Summary by the Congressional Research Service, Feb 20, 2026 (Reported to House). CRS summarizes bills impartially; it does not take positions.