539 
telecommuting to small business concerns and to encourage small busi-
ness concerns to offer telecommuting options to their employees. 
(2) SPECIAL OUTREACH TO INDIVIDUALS WITH DISABILITIES.—In 
carrying out the telecommuting pilot program, the Administrator shall 
make a concerted effort to provide information to— 
(A) small business concerns owned by or employing individuals 
with disabilities, particularly veterans who are individuals with dis-
abilities; 
(B) Federal, State, and local agencies having knowledge and ex-
pertise in assisting individuals with disabilities, including veterans 
who are individuals with disabilities; and 
(C) any group or organization the primary purpose of which is 
to aid individuals with disabilities or veterans who are individuals 
with disabilities. 
(3) PERMISSIBLE ACTIVITIES.—In carrying out the telecommuting 
pilot program, the Administrator may— 
(A) produce educational materials and conduct presentations de-
signed to raise awareness in the small business community of the 
benefits and the ease of telecommuting; 
(B)(i) conduct outreach to small business concerns that are con-
sidering offering telecommuting options; and 
(ii) conduct outreach as provided in paragraph (2); and 
(C) acquire telecommuting technologies and equipment to be 
used for demonstration purposes. 
(4) SELECTION OF REGIONS.—In determining which regions will par-
ticipate in the telecommuting pilot program, the Administrator shall 
give priority consideration to regions in which Federal agencies and 
private-sector employers have demonstrated a strong regional commit-
ment to telecommuting. 
(5) REPORT.—Not later than 2 years after the date on which funds 
are first appropriated to carry out this subsection, the Administrator 
shall submit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the House 
of Representatives a report containing the results of an evaluation of 
the telecommuting pilot program and any recommendations regarding 
whether the pilot program, with or without modification, should be ex-
tended to include the participation of all SBA regions. 
(6) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 
be appropriated to SBA $5,000,000 to carry out this subsection. 
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(7) TERMINATION.—The telecommuting pilot program shall termi-
nate 4 years after the date on which funds are first appropriated to 
carry out this subsection. 
§ 491110. Information regarding, and marketing of, pro-
grams for veterans and reservists 
(a) IN GENERAL.—The Administrator and the Secretary of Defense shall 
develop a joint website and printed materials providing information regard-
ing any program for small business concerns that is available to veterans 
or reservists. 
(b) MARKETING.—The Administrator may— 
(1) advertise and promote the program under section 221103 of this 
title jointly with the Secretary of Defense and veterans’ service organi-
zations; and 
(2) advertise and promote participation by lenders in the program 
jointly with trade associations for banks or other lending institutions. 
§ 491111. Outreach 
regarding 
health 
insurance 
options 
available to children 
(a) DEFINITIONS.—In this section: 
(1) CERTIFIED DEVELOPMENT COMPANY.—The term ‘‘certified de-
velopment company’’ means a development company that is partici-
pating in the certified development company program. 
(2) MEDICAID PROGRAM.—The term ‘‘Medicaid program’’ means the 
program established under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.). 
(3) STATE.—The term ‘‘State’’ has the meaning given the term for 
purposes of title XXI of the Social Security Act (42 U.S.C. 1397aa et 
seq.). 
(4) STATE CHILDREN’S HEALTH INSURANCE PROGRAM.—The term 
‘‘State children’s health insurance program’’ means the State children’s 
health insurance program established under title XXI of the Social Se-
curity Act (42 U.S.C. 1397aa et seq.). 
(5) TASK FORCE.—The term ‘‘task force’’ means the task force es-
tablished under subsection (b)(1). 
(b) ESTABLISHMENT OF TASK FORCE.— 
(1) ESTABLISHMENT.—There is established a task force to conduct 
a nationwide campaign of education and outreach for small business 
concerns regarding the availability of coverage for children through pri-
vate insurance options, the Medicaid program, and the State children’s 
health insurance program. 
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541 
(2) MEMBERSHIP.—The task force shall consist of the Adminis-
trator, the Secretary of Health and Human Services, the Secretary of 
Labor, and the Secretary of the Treasury. 
(3) RESPONSIBILITIES.—The campaign conducted under this sub-
section shall include— 
(A) efforts to educate the owners of small business concerns 
about the value of health coverage for children; 
(B) information regarding options available to the owners and 
employees of small business concerns to make insurance more af-
fordable, including Federal and State tax deductions and credits 
for health care-related expenses and health insurance expenses and 
Federal tax exclusion for health insurance options available under 
employer-sponsored cafeteria plans under section 125 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 125); 
(C) efforts to educate the owners of small business concerns 
about assistance available through public programs; and 
(D) efforts to educate the owners and employees of small busi-
ness concerns regarding the availability of the hotline operated as 
part of the Insure Kids Now program of the Department of 
Health and Human Services. 
(4) IMPLEMENTATION.—In carrying out this subsection, the task 
force may— 
(A) use any business partner of SBA, including— 
(i) a small business development center; 
(ii) a certified development company; 
(iii) a women’s business center; and 
(iv) SCORE; 
(B) enter into— 
(i) a memorandum of understanding with a chamber of 
commerce; and 
(ii) a partnership with any appropriate small business con-
cern or health advocacy group; and 
(C) designate outreach programs at regional offices of the De-
partment of Health and Human Services to work with SBA dis-
trict offices. 
(5) WEBSITE.—The Administrator shall ensure that links to infor-
mation on the eligibility and enrollment requirements for the Medicaid 
program and State children’s health insurance program of each State 
are prominently displayed on the SBA website. 
(6) REPORT.— 
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(A) IN GENERAL.—Every 2 years, the Administrator shall sub-
mit to the Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the House 
of Representatives a report on the status of the nationwide cam-
paign conducted under paragraph (1). 
(B) CONTENTS.—A report under subparagraph (A) shall in-
clude a status update on all efforts made to educate owners and 
employees of small business concerns on options for providing 
health insurance for children through public and private alter-
natives. 
§ 491112. Secondary market lending authority 
(a) DEFINITIONS.—In this section: 
(1) AUTHORITY.—The term ‘‘Authority’’ mean the Secondary Mar-
ket Lending Authority established under subsection (b)(2). 
(2) SBA SECONDARY MARKET.—The term ‘‘SBA secondary market’’ 
means the market for the purchase and sale of loans originated, under-
written, and closed under subtitles I and II. 
(3) SYSTEMICALLY IMPORTANT SBA SECONDARY MARKET BROKER- 
DEALER.—The term ‘‘systemically important SBA secondary market 
broker-dealer’’ means an entity designated as such under subsection 
(b)(1). 
(b) RESPONSIBILITIES, AUTHORITIES, ORGANIZATION, AND
LIMITA-
TIONS.— 
(1) DESIGNATION OF SYSTEMICALLY IMPORTANT SBA SECONDARY 
MARKET BROKER-DEALERS.—The Administrator shall establish a proc-
ess by which the Administrator, in consultation with the Board of Gov-
ernors of the Federal Reserve and the Secretary of the Treasury, shall 
designate as systemically important SBA secondary market broker- 
dealers entities that are vital to the continued operation of the SBA 
secondary market by reason of their purchase and sale of the govern-
ment guaranteed portion of loans, or pools of loans, originated, under-
written, and closed under subtitles I and II. 
(2) ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AU-
THORITY.— 
(A) ORGANIZATION.— 
(i) IN GENERAL.—The Administrator shall establish within 
the SBA an office, to be known as the Secondary Market 
Lending Authority, to provide loans to systemically important 
SBA secondary market broker-dealers to be used for the pur-
pose of financing the inventory of the government guaranteed 
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portion of loans, originated, underwritten, and closed under 
subtitles I and II, or pools of such loans. 
(ii) DIRECTOR.—The Administrator shall appoint a Direc-
tor of the Authority, who shall report to the Administrator. 
(iii) PERSONNEL.—The Administrator may hire such per-
sonnel as are necessary to operate the Authority. 
(iv) CONTRACTING
OF
OPERATIONS.—The Administrator 
may contract such Authority operations as the Administrator 
determines to be necessary to qualified 3d party persons. 
(v) CONTRACTING
WITH
FIDUCIARY
AND
CUSTODIAL 
AGENTS.—The Administrator may contract with private sec-
tor fiduciary and custodial agents as necessary to operate the 
Authority. 
(B) LOANS.— 
(i) PROCESS.—The Administrator shall establish by regula-
tion a process under which systemically important SBA sec-
ondary market broker-dealers may apply to the Administrator 
for loans under this section. 
(ii) CONTENTS.— 
(I) PROCESS.—The regulation under clause (i) shall 
provide a process by which the Administrator shall con-
sider and make decisions regarding whether to extend a 
loan applied for under this section. 
(II) DOCUMENTATION.—The regulation under clause 
(i) shall provide for such loan documents, legal cov-
enants, collateral requirements and other required docu-
mentation as necessary to protect the interests of the 
Administrator and the United States. 
(III) OTHER
PROVISIONS.—The regulation under 
clause (i) shall include provisions to ensure that— 
(aa) loans made under this section are for the 
sole purpose of financing the inventory of the Gov-
ernment guaranteed portion of loans, originated, 
underwritten, and closed under subtitles I and II, or 
pools of such loans. 
(bb) loans made under this section are fully 
collateralized to the satisfaction of the Adminis-
trator; 
(cc) there is no limit to the frequency with which 
a borrower may borrow under this section unless the 
Administrator determines that doing so would cre-
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544 
ate an undue risk of loss to the Administrator or 
the United States; and 
(dd) there is no limit on the size of a loan, sub-
ject to the discretion of the Administrator. 
(iii) INTEREST.—Interest on loans under this section shall 
not exceed the Federal Funds target rate established by the 
Federal Reserve Board of Governors plus 25 basis points. 
(iv) CUSTODIAL ACCOUNTS.—The Administrator shall es-
tablish custodial accounts to safeguard any collateral pledged 
to the Administrator in connection with a loan under this sec-
tion. 
(v) PROCESS FOR DISBURSEMENTS AND RECEIPTS.—The 
Administrator shall establish a process to disburse and receive 
funds to and from borrowers under this section. 
(C) LIMITATIONS
ON
USE
OF
LOAN
PROCEEDS
BY
SYSTEM-
ICALLY
IMPORTANT SBA SECONDARY
MARKET
BROKER-DEAL-
ERS.— 
(I) USE OF FUNDS FOR SPECIFIED PURPOSES.—The 
Administrator shall ensure that borrowers under this 
section are using funds provided under this section only 
for 
the 
purpose 
specified 
in 
subparagraph 
(B)(ii)(III)(aa). 
(II) USE
OF
FUNDS
FOR
OTHER
THAN
SPECIFIED 
PURPOSES.—If the Administrator finds that funds pro-
vided under this section were used for any purpose other 
than 
a 
purpose 
specified 
in 
subparagraph 
(B)(ii)(III)(aa), the Administrator shall— 
(aa) require immediate repayment of outstanding 
loans; 
(bb) prohibit the borrower, its affiliates, or any 
future corporate manifestation of the borrower from 
using the Authority; and 
(cc) take any other action that the Administrator, 
in consultation with the Attorney General, considers 
appropriate. 
(c) FEES.—The Administrator shall charge fees (up front, annual, or 
both) at a specified percentage of the loan amount that is at such a rate 
that the cost of the program under the Federal Credit Reform Act of 1990 
(2 U.S.C. 661 et seq.) shall be equal to zero. 
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(d) REGULATIONS.—The Administrator shall promulgate regulations 
under this section. The notice requirements of section 553(b) of title 5 shall 
not apply to promulgation of regulations under this section. 
(e) BUDGET TREATMENT.—Nothing in this section shall be construed to 
exempt any activity of the Administrator under this section from the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 
(f) MONTHLY REPORT.—Not later than the 3d business day of each 
month, the Administrator shall submit to Congress a report that discloses— 
(1) the aggregate loan amounts extended during the preceding 
month under this section; 
(2) the aggregate loan amounts repaid under this section during the 
preceding month; 
(3) the aggregate loan amount outstanding under this section; 
(4) the aggregate value of assets held as collateral under this section; 
(5) the amount of any defaults or delinquencies on loans made under 
this section; 
(6) the identity of any borrower found by the Administrator to have 
misused funds made available under this section; and 
(7) any other information that the Administrator considers necessary 
to fully inform Congress of undue risk of financial loss to the United 
States in connection with loans made under this section. 
(g) DURATION OF AUTHORITY.—The authority of this section shall re-
main in effect for a period of 2 years after February 17, 2009. 
(b) TITLE 18.— 
(1) IN GENERAL.—Part I of title 18, United States Code, is amend-
ed by adding at the end the following: 
‘‘CHAPTER 124—SMALL BUSINESS AND RELATED 
MATTERS UNDER TITLE 57 
‘‘Sec. 
‘‘2731.
Small business and related matters under title 57. 
‘‘§ 2731. Small business and related matters under title 57 
‘‘(a) DEFINITIONS.—In this chapter, the terms ‘Administrator’, ‘qualified 
HUBZone small business concern’, ‘SBA’, ‘small business concern’, ‘small 
business concern owned and controlled by socially and economically dis-
advantaged individuals’, ‘small business concern owned and controlled by 
women’, ‘subcontract’, and ‘subcontractor’ have the meanings given those 
terms in section 101102 of title 57. 
‘‘(b) FALSE STATEMENT; OVERVALUATION OF SECURITY.—A person that 
makes a statement, knowing the statement to be false, or willfully over-
values a security for the purpose of obtaining for himself or for any appli-
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cant a loan, or a loan extension by renewal, deferment of action, or other-
wise, or the acceptance, release, or substitution of security for a loan, or 
for the purpose of influencing in any way the action of the Administrator, 
or for the purpose of obtaining money, property, or anything of value, under 
subtitle I, II, or III of title 57, shall be imprisoned not more than 2 years, 
fined under this title, or both. 
‘‘(c) UNLAWFUL ACT BY PERSON CONNECTED WITH SBA.—A person 
connected in any capacity with SBA that— 
‘‘(1) embezzles, abstracts, purloins, or willfully misapplies any 
money, funds, security, or other thing of value, whether belonging to 
the Administrator or pledged or otherwise entrusted to the Adminis-
trator; 
‘‘(2) with intent to defraud the Administrator or any other body poli-
tic or corporate, or any individual, or to deceive any SBA officer, audi-
tor, or examiner— 
‘‘(A) makes a false entry in a book, report, or statement of or 
to the Administrator; or 
‘‘(B) without being duly authorized, draws an order or issues, 
puts forth, or assigns a note, debenture, bond, or other obligation, 
or draft, bill of exchange, mortgage, judgment, or decree of judg-
ment of the Administrator; 
‘‘(3) with intent to defraud, participates or shares in or receives di-
rectly or indirectly any money, profit, property, or benefit through any 
transaction, loan, commission, contract, or other act of the Adminis-
trator; or 
‘‘(4)(A) gives any unauthorized information concerning a future ac-
tion or plan of the Administrator that might affect the value of a secu-
rity; or 
‘‘(B) having such knowledge, invests or speculates, directly or indi-
rectly, in a security or property of any company or corporation receiv-
ing a loan or other assistance from the Administrator; 
shall be imprisoned not more than 5 years, fined under this title, or both. 
‘‘(d) CONCEALMENT, DISPOSAL, OR CONVERSION OF PROPERTY.—A per-
son that, with intent to defraud, knowingly conceals, removes, disposes of, 
or converts to the use of that person or any other person any property mort-
gaged or pledged to, or held by, the Administrator— 
‘‘(1) shall be imprisoned not more than 1 year, fined under this title, 
or both; or 
‘‘(2) if the value of the property exceeds $100, shall be imprisoned 
not more than 5 years, fined under this title, or both. 
‘‘(e) MISREPRESENTATION OF STATUS AS SMALL BUSINESS CONCERN.— 
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‘‘(1) OFFENSE.—A person that, in writing, misrepresents the status 
of a concern or person as a small business concern, qualified HUBZone 
small business concern, small business concern owned and controlled by 
socially and economically disadvantaged individuals, or small business 
concern owned and controlled by women, in order to obtain for that 
person or any other person— 
‘‘(A) a prime contract to be awarded under chapter 251, 253, 
261, or 263 of title 57; 
‘‘(B) a subcontract to be awarded under chapter 233 of title 57; 
‘‘(C) a subcontract that is to be included as part or all of a goal 
contained in a subcontracting plan required under section 243103 
title 57; or 
‘‘(D) a prime contract or subcontract to be awarded as a result, 
or in furtherance, of any other provision of Federal law that spe-
cifically references chapter 243 of title 57 for a definition of pro-
gram eligibility; 
shall be imprisoned not more than 10 years, fined not more than 
$500,000, or both. 
‘‘(2) LIMITATION ON LIABILITY.—This subsection does not apply to 
any conduct in violation of paragraph (1) if the violator acts in good 
faith reliance on a written advisory opinion issued as provided under 
section 105102(d) of title 57. 
‘‘(f) FALSE CERTIFICATION OF PAST COMPLIANCE.—A person that false-
ly certifies past compliance with the requirements of section 233128 of title 
57 shall be imprisoned not more than 10 years, fined not more than 
$500,000, or both. 
‘‘(g) SUBCONTRACTING REQUIREMENTS AND LIMITATIONS.— 
‘‘(1) SUBCONTRACTING REQUIREMENT.—A person that fails to sup-
ply the product of a domestic manufacturer or processor that is a small 
business concern as required under section 299107(b)(4) of title 57 
shall be imprisoned not more than 10 years, fined not more than 
$500,000, or both. 
‘‘(2) SUBCONTRACTING LIMITATION.—A person that expends on sub-
contractors an amount in excess of the amount permitted under para-
graph (1), (2), or (3) of subsection (b) of section 299107 of title 57 
or in excess of an amount established by the Administrator under sub-
section (e) of that section shall be imprisoned not more than 10 years, 
fined not more than the greater of— 
‘‘(A) $500,000; or 
‘‘(B) the amount of the excess expenditure; 
or both imprisoned and fined.’’. 
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