H.R. 7401, the Small Business Lending Fraud Prevention Act, passed the House on June 24, 2026.
H.R. 7401 — Small Business Lending Fraud Prevention Act
What it does
This bill requires Small Business Administration employees who personally handle SBA loan origination, review, or approval to certify in writing that they have no conflicts of interest under federal law, and to immediately disclose any conflicts that arise after certification. The SBA must issue implementing regulations within 180 days. The bill aims to prevent fraud and self-dealing in federal small-business lending by creating a formal accountability mechanism for loan officers.
Quorum's transparency scan found no buried provisions in Small Business Lending Fraud Prevention Act.
What happens next
H.R. 7401 passed the House. It now moves to the other chamber.
Who is behind it
Filed by Daniel Meuser. Cosponsored by Maggie Goodlander.