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RD Instruction 1940-Q 

PART 1940 - GENERAL 

Subpart Q - Restrictions on Lobbying 

§1940.801 Purpose. 

This subpart implements section 319 of Public Law 101-121, which 

prohibits applicants and recipients of Federal contracts, grants and loans 

from using appropriated funds for lobbying the Federal Government in 

connection with a specific award. Section 319 also requires that each person 

who requests or receives a Federal contract, grant, loan, or a Federal 

commitment to guarantee a loan, must disclose the expenditure of any funds, 

other than appropriated funds, for lobbying activities. This subpart provides 

administrative guidance regarding the information contained in U.S. Department 

of Agriculture's (USDA) 7 CFR part 3018 and Departmental Regulation (DR) 

2400-5, which are attached as Exhibits A and B of this subpart. This subpart 

is inapplicable to Farm Service Agency, Farm Loan Programs. (Revised 

01-09-08, PN 417.) 

§1940.802 [Reserved] (Revised 07-31-96, PN 264.) 

§1940.803 Definitions. 

In addition to the following, refer to the definitions in §3018.105 of 

Exhibit A of this subpart. 

Appropriated funds. Federal funds received from any Federal agency for 

a purpose or purposes authorized by such agency. 

Communication. Includes written, oral, electronic or other means of 

communications. 

Receiving office. The State, District, or County Office that is the 

primary office responsible for processing an application. 

§§1940.804 - 1940.809 [Reserved] 

DISTRIBUTION: WSAL Loan and Grant Making 

General 

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RD Instruction 1940-Q 

§1940.810 Certification for contracts, grants and loans. 

(a) The Certification for Contracts, Grants and Loans, contained in 

Exhibit A-1 of this subpart, must be completed at the time an 

application or bid proposal is submitted by a person requesting a 

contract or grant exceeding $100,000, or a loan exceeding $150,000. 

(b) Any person who requests or receives a contract, subcontract or 

subgrant exceeding $100,000 at any tier under a covered contract, grant 

or loan, must complete and submit a certification to the next higher 

tier. 

(c) The certification completed by a person referred to in paragraph 

(a) of this section will be collected by the receiving office and filed 

in the case folder. 

(d) Recipients of contracts, grants or loans, or their subs, who 

receive certifications from lower tier applicants or recipients shall 

file the certifications with documents related to the subaward, and 

shall make them available for Agency examination upon request. 

(e) Refer to §3018.110 of Exhibit A of this subpart for additional 

information. 

§1940.811 Statement for loan guarantees. 

(a) The Statement for Loan Guarantees, contained in Exhibit A-2 of this 

subpart, must be completed by the lender at the time an application is 

filed for each loan exceeding $150,000. 

(b) The statement will be collected by the receiving office and filed 

in the case folder. 

(c) Refer to §3018.110 of Exhibit A of this subpart for additional 

information. 

§1940.812 Disclosure of lobbying activities. 

(a) Standard Form (SF) LLL, "Disclosure of Lobbying Activities," which 

is part of Exhibit A of this subpart, must be completed by a person 

requesting or receiving a Agency contract, grant, loan, or a Agency 

commitment to guarantee a loan, and who meets the following conditions: 

(1) the award amount exceeds the threshold stated in §1940.810(a) 

or §1940.811(a) of this subpart; and 

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§1940.812 (a) (Con.) RD Instruction 1940-Q 

(2) the person has made or has agreed to make any payment, using 

funds other than appropriated funds, to influence or attempt to 

influence a decision in connection with that specific award. 

(b) SF-LLL must also be completed by any person who requests or 

receives a contract, subcontract or subgrant at any tier under a covered 

contract, grant or loan, and who meets the following conditions: 

(1) the award amount exceeds $100,000; and 

(2) the person has made or has agreed to make any payment, using 

funds other than appropriated funds, to influence or attempt to 

influence a decision in connection with that specific award. 

(c) Each person who meets all conditions of paragraph (a) or (b) of 

this section will submit a disclosure form at the time of the 

application or bid proposal, and, at the end of each calendar quarter in 

which there occurs an event as specified in §3018.110 (c) of Exhibit A 

of this subpart. 

(d) All disclosure forms, including quarterly updates, will be 

collected in the receiving office. The forms completed by persons under 

paragraph (a) of this section will be submitted directly to the 

receiving office. Forms completed by persons under paragraph (b) of 

this section will be submitted to the next higher tier. They will then 

be forwarded from tier to tier until they reach the receiving office. 

The original completed form will be retained in the case folder. One 

copy will be forwarded to the State Director, and a second copy will be 

sent immediately to the following address: 

USDA, Office of Operations 

Procurement Division 

Policy and Review Team 

14th and Independence Ave., S.W. 

Room 1575-S 

Washington, D.C. 20250 

(e) The information provided on this form cannot be used by Rural 

Development as a basis for denying Federal assistance. 

(f) Refer to Exhibit B of this subpart for additional information. 

§§1940.813 - 1940.819 [Reserved] 

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§1940.820 Exceptions. 

(a) The prohibition on the use of appropriated funds and disclosure 

requirements governing the use of funds, other than appropriated funds, 

do not apply to certain activities. These activities are described in 

Subparts B and C of Exhibit A of this subpart. 

(b) Section 319 of P.L. 101-121 imposes no restrictions on the use of 

any funds for general lobbying; i.e., attempts to influence Congress or 

the Executive Branch with respect to a program, rather than a specific 

award. Such general lobbying need not be disclosed on SF LLL. However, 

Section 319 does not authorize lobbying otherwise restricted or 

prohibited by law. 

§1940.821 Examples. 

Several examples of activities addressed by this Instruction are 

contained in Exhibit C of this subpart. They are to be used for guidance 

purposes only. 

§§1940.822 - 1940.839 [Reserved] 

§1940.840 Penalties and enforcement. 

(a) Failure to comply with the provisions of this subpart may result in civil 

penalties, as described in §3018.400 of Exhibit A of this subpart. 

(b) The Under Secretary, Rural Development, shall take such actions as are 

necessary to ensure that the provisions in Section 319 of P.L. 101-121 are 

vigorously implemented and enforced. 

§§1940.841 - 1940.850 [Reserved] 

Attachments: Exhibits A, A-1, A-2, B, and C 

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1940-Q Exhibit A not automated please see manual 
 

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RD Instruction 1940-Q 

Exhibit A-1 

CERTIFICATION FOR CONTRACTS, GRANTS AND LOANS

 The undersigned certifies, to the best of his or her knowledge and belief, 

that: 

1. No Federal appropriated funds have been paid or will be paid, by or 

on behalf of the undersigned, to any person for influencing or attempting to 

influence an officer or employee of any agency, a Member of Congress, an 

officer or employee of Congress, or an employee of a Member of Congress in 

connection with the awarding of any Federal contract, the making of any 

Federal grant or Federal loan, and the extension, continuation, renewal, 

amendment, or modification of any Federal contract, grant or loan. 

2. If any funds other than Federal appropriated funds have been paid or 

will be paid to any person for influencing or attempting to influence an 

officer or employee of any agency, a Member of Congress, an officer or 

employee of Congress, or an employee of a Member of Congress in connection 

with this Federal contract, grant or loan, the undersigned shall complete and 

submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance 

with its instructions. 

3. The undersigned shall require that the language of this certification 

be included in the award documents for all subawards at all tiers (including 

contracts, subcontracts, and subgrants under grants and loans) and that all 

subrecipients shall certify and disclose accordingly. 

This certification is a material representation of fact upon which 

reliance was placed when this transaction was made or entered into. 

Submission of this certification is a prerequisite for making or entering into 

this transaction imposed by section 1352, title 31, U.S. Code. Any person who 

fails to file the required certification shall be subject to a civil penalty 

of not less than $10,000 and not more than $100,000 for each such failure. 

(name) (date) 

(title) 

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______________________________________ _________________________________ 

RD Instruction 1940-Q 

Exhibit A-2 

STATEMENT FOR LOAN GUARANTEES

 The undersigned states, to the best of his or her knowledge and belief, 

that: 

If any funds have been or will be paid to any person for influencing or 

attempting to influence an officer or employee of any agency, a Member of 

Congress, an officer or employee of Congress, or an employee of a Member of 

Congress in connection with this commitment providing for the United States to 

guarantee a loan, the undersigned shall complete and submit Standard Form -

LLL, "Disclosure of Lobbying Activities," in accordance with its instructions. 

Submission of this statement is a prerequisite for making or entering into 

this transaction imposed by section 1352, title 31, U.S. Code. Any person who 

fails to file the required statement shall be subject to a civil penalty of 

not less than $10,000 and not more than $100,000 for each such failure. 

(name) (organization) 

(title) (date) 

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1940-Q Exhibit B not automated see manual 
 

RD Instruction 1940-Q 

Exhibit C 

EXAMPLES OF ACTIVITIES ADDRESSED BY RD INSTRUCTION 1940-Q 

1. [A] is an applicant for a $1,000,000 Rural Development Rural Rental 

Housing Loan. [B] is an architectural firm retained by [A] for preliminary 

design studies. [A] has requested [B] to visit the Rural Development State 

Office to discuss design options for use in developing an application. 

This technical activity is specifically authorized for use of 

appropriated funds and does not need to be reported by [A] as a 

lobbying activity. However, if the visit includes any communication 

with Rural Development officials on application issues that are not 

architecturally related, the activity is not exempt from the law. 

2. [C] will be submitting a loan application in the amount of $149,000 for a 

community facility. [C] has paid, with its own funds, [D], a consultant, to 

visit the National Office to help expedite the application when it is 

received. 

[C] will not be required to submit a certification nor a disclosure 

form because the loan amount is less than $150,000. 

3. [E] is borrowing $2,000,000 from Rural Development to construct a 

hospital. The construction contract with [F] is in the amount of $1,700,000. 

[F] has a mechanical subcontract with [G] in the amount of $150,000. 

[E] must submit a certification to Rural Development at the time of the 

application. [F] must submit its certificate with the proposed bid 

to [E]. [G], having a subcontract of more than $100,000, must submit 

a certificate to [F]. [E] and [F] will retain the certifications 

they received from the lower tier awardees. 

4. [H] is a lender who has requested an 80 percent guarantee on a $175,000 

guaranteed loan for applicant [I]. [I] submitted the loan application without 

a signed statement from [H] because the guaranteed portion of the loan (80% of 

$175,000) was less than $150,000. 

The amount that determines whether or not a statement is required 

from the lender is the total guaranteed loan (amount obligated = 

$175,000); therefore, the application should have included a 

statement from [H]. [I] is not required to sign a certification. 

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RD Instruction 1940-Q 

Exhibit C 

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5. [J] is a long time Rural Development borrower who submitted a Form SF LLL 

because she paid [K], a lobbyist, with her own funds, to visit Washington in 

an attempt to persuade a Member of Congress to increase the Farmer Programs 

budget for the next fiscal year. 

The disclosure form is not required when the lobbying activity 

involves a program and not a specific application or award. 

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