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.
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.
