Bill · H.R. 7401· House(119-HR-7401)
Small Business Lending Fraud Prevention Act
- Introduced
- 2/5/2026
- Last activity
- 7/13/2026 — Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Sponsored by
- Daniel Meuser
- Cosponsors
- - 0 - 1
- Introduced
- Passed House
- In Senate committee
What this bill would do
This act, titled the "Small Business Lending Fraud Prevention Act," establishes new certification requirements for Small Business Administration employees. Employees who personally participate in the origination, review, or approval of a loan must provide a written certification to the Administrator. This certification must state that the employee has no prohibited conflicts of interest regarding that loan. Additionally, employees are required to disclose any conflicts discovered after the fact and recuse themselves from the loan. The Administrator is also tasked with issuing implementing regulations for this act.
Yes· 3 of 5
Does this make what the government does easier for the public to see?+4
The bill improves transparency and accountability by mandating written conflict of interest certifications from SBA employees.
Does this make the government pay for what it commits to?+3
The act enhances the integrity of the loan process by requiring employees to certify they have no prohibited conflicts of interest.
Would business owners be better off under this?+3
The bill helps create a more level playing field for all small business owners by reducing potential favoritism through conflicts of interest.
The opposite
No question was scored the opposite.
What Congress actually voted on
One recorded vote has been taken on this bill.
- The House: a fast-track vote, needing two-thirds to passPassed 415–0
The House sets aside its normal procedure to move quickly: no amendments, little debate, and a two-thirds bar instead of a simple majority. It is used for measures expected to be uncontroversial, so a bill that fails here failed despite broad expectations that it would not.
06/24/2026 · Roll call 225 · recorded as “On Motion to Suspend the Rules and Pass”
Who it would affect, and how
Potential Positive Impacts for People
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Conflict of Interest Mitigation: Employees involved in the origination, review, or approval of loans must certify they have no prohibited conflicts of interest, which aims to prevent such issues under section 208 of title 18, United States Code, or section 2635.502 of title 5, Code of Federal Regulations (Section 2.a.1).
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Proactive Conflict Management: The requirement that employees immediately disclose any conflicts discovered after certification and recuse themselves from the loan helps ensure transparency (Section 2.a.2).
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Regulatory Compliance: Employees must certify that they understand the federal laws and Administration regulations regarding conflicts of interest (Section 2.a.3).
Potential Negative Impacts for People
- No specific negative impacts or burdens are explicitly mentioned in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Fiscal Responsibility+3Improves Small Business Support+2
- Demographic And Interest Groups
- Good For Business Owners+3Good For Low Income Households+1
- Governance And Ideology
- Improves Government Transparency+4
- 7/13/2026
- Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 6/24/2026
- Motion to reconsider laid on the table Agreed to without objection.
- 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).
- 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)
- 6/23/2026
- 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.
- 2/20/2026
- Reported by the Committee on Small Business. H. Rept. 119-500.
- Placed on the Union Calendar, Calendar No. 426.
- 2/11/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported by the Yeas and Nays: 24 - 0.
- 2/5/2026
- Referred to the House Committee on Small Business.
- 1 Cosponsor added.
- Introduced in House
Maggie GoodlanderDemocrat · New Hampshire