Sponsors (2)
The bill increases transparency and reduces conflicts in SBA lending—improving fairness and public trust—at the cost of added regulatory and administrative burdens that may slow loan processing and raise agency workload/costs.
Small-business owners will get fairer SBA loan decisions because federal employees who handle loans must disclose conflicts and recuse themselves, reducing undisclosed conflicts of interest.
Taxpayers and small-business owners may see increased public trust and a lower risk of corruption in SBA lending because of expanded disclosure and recusal requirements for loan-handling employees.
Small-business owners and loan applicants could experience slower access to funding because the new administrative disclosure and recusal steps for SBA loan officers may delay loan processing.
Federal employees and taxpayers will face increased agency workload and possible compliance costs because the SBA must draft and implement regulations within a 180-day deadline.
Based on analysis of 2 sections of legislative text.
Requires SBA staff who will personally and substantially handle SBA loans to certify no federal conflict of interest, disclose later conflicts, and recuse; SBA must issue regulations.
Requires certain SBA employees who will personally and substantially participate in originating, reviewing, or approving SBA-administered loans to provide a written certification that they have no prohibited conflict 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 certification requirement begins 270 days after enactment.
Official title: To require employees of the Small Business Administration to certify that the employee does not have any prohibited conflicts of interest with respect to loans in which the employee is involved, and for other purposes.
Introduced February 5, 2026 by Dan Meuser · Last progress June 24, 2026