Sponsors (2)
The bill tightens SBA conflict-of-interest and ethics requirements to reduce biased lending and improve transparency, while imposing additional administrative burdens and costs that could slow loan processing and affect small-business access to credit.
Small-business owners: reduced risk of biased or conflicted loan decisions because SBA employees must certify absence of conflicts and acknowledge ethics rules before participating in loan origination, review, or approval.
Taxpayers and small-business owners: improved federal transparency and accountability because the SBA Administrator must issue implementing regulations within 180 days establishing formal disclosure and recusal processes.
Small-business owners: potential delays in loan processing and slower access to credit if employee recusals are not quickly replaced or substituted.
Taxpayers and small-business owners: higher SBA administrative and oversight costs to implement and monitor the new certification regime, which could reduce resources for loan processing or increase taxpayer burden.
Federal employees: added administrative burden from preparing and maintaining written certifications and potential required training to comply with the new requirements.
Based on analysis of 2 sections of legislative text.
Requires employees of the Small Business Administration who will personally and substantially participate in originating, reviewing, or approving SBA loans to submit a written certification that they have no disqualifying conflict of interest, will disclose any later-discovered conflicts and recuse themselves, and that they understand applicable conflict-of-interest law and SBA rules. The SBA Administrator must issue implementing regulations within 180 days, and employees must provide the required certification beginning 270 days after enactment.
Introduced February 5, 2026 by Dan Meuser · Last progress February 5, 2026