Contents
- (a) Loans to private business enterprises8 changes
- (b) Solid waste management grants4 changes
- (c) Rural business development grants7 changes
- (d) Joint loans or grants for private business enterprises; restrictions; system of certification for expeditious processing of requests for assistance; prior approval of grant or loan; equity investment as condition for loan commitment; issuance of certificates of beneficial ownership of notes7 changes
- (e) Rural cooperative development grants16 changes
- (f) Repealed. Pub. L. 115–334, title VI, § 6601(a)(1)(B), Dec. 20, 2018, 132 Stat. 47757 changes
- (g) Business and industry direct and guaranteed loans12 changes
- (h) Loan guarantees for certain loans2 changes
- (i) Appropriate technology transfer for rural areas program6 changes
- (j) Rural economic area partnership zones4 changes
(g)
(1)In this subsection, the term “business and industry loan” means a business and industry direct or guaranteed loan that is made or guaranteed by the Secretary under subsection (a)(2)(A), including guarantees described in paragraph (3)(A)(ii).
(2)
(A)The Secretary may guarantee a business and industry loan to individual farmers or ranchers for the purpose of purchasing capital stock of a farmer or rancher cooperative established for the purpose of processing an agricultural commodity.
(B)A cooperative described in subparagraph (A) for which a farmer or rancher receives a guarantee to purchase stock under subparagraph (A) may contract for services to process agricultural commodities, or otherwise process value-added agricultural products, during the 5-year period beginning on the date of the startup of the cooperative in order to provide adequate time for the planning and construction of the processing facility of the cooperative.
(C)Financial information required by the Secretary from a farmer or rancher as a condition of making a business and industry loan guarantee under this paragraph shall be provided in the manner generally required by commercial agricultural lenders in the area.
(3)
(A)
(i)The Secretary may make or guarantee a business and industry loan to a cooperative organization that is headquartered in a metropolitan area if the loan is used for a project or venture described in subsection (a) that is located in a rural area or a loan guarantee that meets the requirements of paragraph (6).
(ii)The Secretary may guarantee a loan made for the purchase of preferred stock or similar equity issued by a cooperative organization or a fund that invests primarily in cooperative organizations, if the guarantee significantly benefits 1 or more entities eligible for assistance for the purposes described in subsection (a)(1), as determined by the Secretary.
(B)A cooperative organization that is eligible for a business and industry loan shall be eligible to refinance an existing business and industry loan with a lender if—
(i)the cooperative organization—
(I)is current and performing with respect to the existing loan; and
(II)is not, and has not been, in payment default, or the collateral of which has not been converted, with respect to the existing loan; and
(ii)there is adequate security or full collateral for the refinanced loan.
(4)The Secretary may require that any appraisal made in connection with a business and industry loan be conducted by a specialized appraiser that uses standards that are similar to standards used for similar purposes in the private sector, as determined by the Secretary.
(5)The Secretary may assess a 1-time fee for any guaranteed business and industry loan in an amount that does not exceed 2 percent of the guaranteed principal portion of the loan.
(6)
(A)The Secretary may guarantee a business and industry loan to a cooperative organization for a facility that is not located in a rural area if—
(i)the primary purpose of the loan guarantee is for a facility to provide value-added processing for agricultural producers that are located within 80 miles of the facility;
(ii)the applicant demonstrates to the Secretary that the primary benefit of the loan guarantee will be to provide employment for residents of a rural area; and
(iii)the total amount of business and industry loans guaranteed for a fiscal year under this paragraph does not exceed 10 percent of the business and industry loans guaranteed for the fiscal year under subsection (a)(2)(A).
(B)The principal amount of a business and industry loan guaranteed under this paragraph may not exceed $25,000,000.
(7)
(A)In determining whether a cooperative organization is eligible for a guaranteed business and industry loan, the Secretary may consider the market value of a properly appraised brand name, patent, or trademark of the cooperative.
(B)In the discretion of the Secretary, if the Secretary determines that the action would not create or otherwise contribute to an unreasonable risk of default or loss to the Federal Government, the Secretary may take accounts receivable as security for the obligations entered into in connection with loans and a borrower may use accounts receivable as collateral to secure a loan made or guaranteed under this subsection.
(8)
(A)
(i)Subject to clause (ii), the principal amount of a business and industry loan made to a cooperative organization and guaranteed under this subsection shall not exceed $40,000,000.
(ii)To be eligible for a guarantee under this subsection for a business and industry loan made to a cooperative organization, the principal amount of the any such loan in excess of $25,000,000 shall be used to carry out a project that—
(I)
(aa)is in a rural area; and
(bb)provides for the value-added processing of agricultural commodities; or
(II)significantly benefits 1 or more entities eligible for assistance for the purposes described in subsection (a)(1), as determined by the Secretary.
(B)If a cooperative organization submits an application for a guarantee under this subsection of a business and industry loan with a principal amount that is in excess of $25,000,000, the Secretary—
(i)shall review and, if appropriate, approve the application; and
(ii)may not delegate the approval authority.
(C)The total amount of business and industry loans made to cooperative organizations and guaranteed for a fiscal year under this subsection with principal amounts that are in excess of $25,000,000 may not exceed 10 percent of the business and industry loans guaranteed for the fiscal year under subsection (a)(2)(A).
(9)
(A)In this paragraph:
(i)The term “locally or regionally produced agricultural food product” means any agricultural food product that is raised, produced, and distributed in—
(I)the locality or region in which the final product is marketed, so that the total distance that the product is transported is less than 400 miles from the origin of the product; or
(II)the State in which the product is produced.
(ii)The term “underserved community” means a community (including an urban or rural community and an Indian tribal community) that has, as determined by the Secretary—
(I)limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and
(II)a high rate of hunger or food insecurity or a high poverty rate.
(B)
(i)The Secretary shall make or guarantee loans to individuals, cooperatives, cooperative organizations, businesses, and other entities to establish and facilitate enterprises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support community development and farm and ranch income.
(ii)The recipient of a loan or loan guarantee under clause (i) shall include in an appropriate agreement with retail and institutional facilities to which the recipient sells locally or regionally produced agricultural food products a requirement to inform consumers of the retail or institutional facilities that the consumers are purchasing or consuming locally or regionally produced agricultural food products.
(iii)In making or guaranteeing a loan under clause (i), the Secretary shall give priority to projects that have components benefitting underserved communities.
(iv)
(I)For each of fiscal years 2008 through 2023, the Secretary shall reserve not less than 5 percent of the funds made available to carry out this subsection to carry out this subparagraph.
(II)Funds reserved under subclause (I) for a fiscal year shall be reserved until April 1 of the fiscal year.
United States Government work; public domain under 17 U.S.C. § 105.