H.R. 7401 — Small Business Lending Fraud Prevention Act

This section requires employees of the Small Business Administration (SBA) who will personally and substantially participate in the origination, review, or approval of an SBA-administered loan to certify in writing to the SBA Administrator, beginning 270 days after enactment, that (1) to their knowledge, they have no conflict of interest prohibited under 18 U.S.C. 208 (i.e., prohibiting executive branch employees from participating in particular matters affecting their financial interests or those of specified relatives or associates) or 5 C.F.R. 2635.502 (i.e., standards on personal and business relationships); (2) upon learning of such a conflict, they will disclose it to their supervisor and recuse themselves from the loan; and (3) they understand applicable Federal law and SBA regulations on conflicts of interest. The section further directs the SBA Administrator to issue implementing regulations within 180 days after enactment.