Sponsors (2)
The bill strengthens conflict-of-interest safeguards and program integrity for SBA lending at the cost of added employee certifications, potential loan processing delays, and short-term agency implementation burdens.
Small-business owners will face fewer biased loan decisions because SBA staff must certify there are no conflicts of interest before originating, reviewing, or approving loans.
Taxpayers and the public will gain stronger oversight and integrity of SBA lending programs through mandatory written certifications and required implementing regulations.
Federal employees will have clearer obligations and greater awareness of conflict rules because they must certify understanding of applicable federal and SBA requirements.
Small-business owners could experience slower access to financing if loan processing is delayed when employees must recuse themselves and replacements are identified.
SBA employees will bear additional administrative burden and paperwork from required pre‑participation certifications and potential recusal procedures.
Small businesses and SBA staff may be affected by agency costs and diverted resources during the 180‑day rulemaking and implementation period, which could slow other SBA activities.
Based on analysis of 2 sections of legislative text.
Requires SBA employees who will personally and substantially handle SBA loans to certify they have no prohibited conflicts, disclose later conflicts, and recuse, with SBA regs due in 180 days.
Introduced February 5, 2026 by Dan Meuser · Last progress February 5, 2026
Requires Small Business Administration (SBA) employees who will personally and substantially take part in originating, reviewing, or approving SBA-administered loans to provide a written certification that they have no prohibited conflicts of interest, will disclose any later-discovered conflicts and recuse, and understand applicable conflict rules. The SBA Administrator must issue implementing regulations within 180 days; the employee certification requirement begins 270 days after enactment.