H.R. 6779
USDA Loan Modernization Act
Sponsor: Mike Bost
3 cosponsors
Official summary
No official summary yet.
Text of the bill
Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended—
(1) by striking all that precedes shall make and insure and inserting the following:
321. Eligibility for loans
(a) In general
(1) Eligibility requirements. The Secretary
; and
(2) in subsection (a)—
(A) in the 1st sentence—
(i) by striking (1) and inserting (A);
(ii) by striking (2) and inserting (B);
(iii) by striking (A) the 1st place it appears and inserting (i);
(iv) by striking (B) the 1st place it appears and inserting (ii); and
(v) by striking a majority each place it appears and inserting at least a 50 percent;
(B) by striking the 5th sentence; and
(C) by adding at the end the following:
(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 applicant that is or will become only the operator of farm real estate acquired, improved, or supported with funds under this subtitle shall be considered to meet the owner-operator requirements of paragraph (1) if 1 or more of the individuals who is an owner of the real estate owns at least 50 percent (or such other percentage as the Secretary determines is appropriate) of the applicant.
(C) Eligibility of certain embedded entities. An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (B) of this paragraph that is owned, in whole or in part, by 1 or more 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 acquired, improved, or supported with funds under this subtitle.