This bill requires Small Business Administration (SBA) employees who participate in the origination, review, or approval of SBA loans to certify in writing prior to such participation that the employee does not have any conflict of interest with respect to the loan, will disclose any such conflict of interest arising after the certification is made, andunderstands the requirements with respect to conflicts of interest applicable SBA employees.Under current law, federal employees must disclose financial conflicts of interest with respect to a particular matter and recuse themselves from such matter (with limited exceptions upon authorization from the employee's agency designee).The SBA must issue regulations implementing the requirements of this bill.
This bill is about preventing fraud in small business lending by various unspecified means.
What it actually does
This bill requires SBA employees to certify in writing that they have no conflicts of interest before participating in loan origination, review, or approval.
Watch Items
•The bill does not address preventing actual fraud.
•The specific requirement to certify in writing, disclose conflicts, and understand the rules is what the bill actually does, but it's not clear from the title.
•The title does not suggest that the bill primarily deals with conflict of interest policies for SBA employees.