H.R. 6779

USDA Loan Modernization Act

Sponsor: Mike Bost

3 cosponsors
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Sec. 3. Persons eligible for operating loans

Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941) is amended—

(1) in paragraph (1)—

(A) in the matter preceding subparagraph (A), by striking a majority and inserting at least a 50 percent; and

(B) in subparagraph (C), by striking a majority and inserting at least a 50 percent; and

(2) by amending paragraph (2) to read as follows:

Text this section adds to the law

(2) Special rules

(A) Eligibility of qualified operators. Qualified operators, as defined by the Secretary, shall be considered to meet the operator requirement of paragraph (1).

(B) Eligibility of certain operating-only entities. An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the total ownership interests of the embedded entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm improved or supported with funds under this subtitle.