Bill Sponsor
House Bill 7401
119th Congress(2025-2026)
Small Business Lending Fraud Prevention Act
Active
Active
Passed House on Jun 24, 2026
Overview
Text
Bill Intelligence

This Act requires Small Business Administration employees involved in loan origination to certify that they have no conflicts of interest and understand the related regulations. They must disclose any conflicts of interest and recuse themselves if they arise. The Administrator will issue regulations within 180 days of the enactment date. The Act impacts the Small Business Administration and its employees, ensuring transparency and preventing fraud in small business lending.

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Sponsor
Introduced
Feb 5, 2026
Latest Action
Jul 13, 2026
Origin Chamber
House
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
7401
Congress
119
Policy Area
Commerce
Commerce
Primary focus of measure is business investment, development, regulation; small business; consumer affairs; competition and restrictive trade practices; manufacturing, distribution, retail; marketing; intellectual property. Measures concerning international competitiveness and restrictions on imports and exports may fall under Foreign Trade and International Finance policy area.
Sponsorship by Party
Republican
Pennsylvania
Democrat
New Hampshire
House Votes (1)
Senate Votes (0)
checkPassed on June 24, 2026
Question
On Motion to Suspend the Rules and Pass
Status
Passed
Type
Roll Call Vote
Roll Call Vote
A vote that records the individual position of each Member who voted. Such votes occurring on the House floor (by the "yeas and nays" or by "recorded vote") are taken by electronic device. The Senate has no electronic voting system; in such votes, Senators answer "yea" or "nay" as the clerk calls each name aloud. Each vote is compiled by clerks and receives a roll call number (referenced in Congress.gov as a "Record Vote" [Senate] or "Roll no." [House]).
Roll Call Type
2/3 Yea-And-Nay
Roll Number
225
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Summary

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.

Text (3)
June 24, 2026
February 20, 2026
February 5, 2026
Actions (15)
07/13/2026
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
06/24/2026
Motion to reconsider laid on the table Agreed to without objection.
06/24/2026
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).
06/24/2026
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).
06/24/2026
Considered as unfinished business. (consideration: CR H4226-4227)
06/23/2026
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.
06/23/2026
DEBATE - The House proceeded with forty minutes of debate on H.R. 7401.
06/23/2026
Considered under suspension of the rules. (consideration: CR H4140-4141; text: CR H4140)
06/23/2026
Mr. Williams (TX) moved to suspend the rules and pass the bill.
02/20/2026
Placed on the Union Calendar, Calendar No. 426.
02/20/2026
Reported by the Committee on Small Business. H. Rept. 119-500.
02/11/2026
Ordered to be Reported by the Yeas and Nays: 24 - 0.
02/11/2026
Committee Consideration and Mark-up Session Held
02/05/2026
Referred to the House Committee on Small Business.
02/05/2026
Introduced in House
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H.R.7401 119 Small Business Lending Fraud Prevention Act
Public Record
Record Updated
Jul 14, 2026 10:56:29 AM