AI-assisted analysis based on the official CRS summary. Source version: Jun 17, 2026. Analysis updated: Sep 12, 2026.
01 — The Text
What.
- SBA employees involved in originating, reviewing, or approving SBA loans must provide written certification before participating that they have no conflicts of interest.
- Employees must disclose any conflicts of interest that arise after the initial certification is made.
- Employees must certify they understand SBA conflict-of-interest requirements applicable to federal employees.
- Current federal law requires employees to disclose financial conflicts and recuse themselves from matters, with limited exceptions authorized by agency designees.
- The SBA must issue regulations to implement these certification and disclosure requirements.
02 — The Stakes
So what?
- The bill formalizes and documents conflict-of-interest management for SBA loan personnel through a certification process.
- It creates a paper trail of conflict disclosures tied to individual loan transactions.
- The official summary does not establish whether this reduces fraud rates, changes approval timelines, or produces other measurable outcomes.
- The summary does not specify penalties for non-compliance or false certification.
03 — The Path
Now what?
- House passed the bill 415–0 on June 24, 2026 under suspension of rules.
- Senate received the bill and referred it to the Committee on Small Business and Entrepreneurship on July 13, 2026.
- No scheduled committee vote or floor action date is documented.
Legislative History
Actions.
- Jul 13, 2026 — Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Jun 24, 2026 — Motion to reconsider laid on the table Agreed to without objection.
- Jun 24, 2026 — On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 415 - 0, 1 Present (Roll no. 225).
- Jun 24, 2026 — Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 415 - 0, 1 Present (Roll no. 225).
- Jun 24, 2026 — Considered as unfinished business. (consideration: CR H4226-4227)
- Jun 23, 2026 — At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Williams (TX) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was considered as withdrawn.
- Jun 23, 2026 — DEBATE - The House proceeded with forty minutes of debate on H.R. 7401.
- Jun 23, 2026 — Considered under suspension of the rules. (consideration: CR H4140-4141; text: CR H4140)