7 U.S.C. § 1932 — Assistance for rural entities

Page 1089 TITLE 7—AGRICULTURE § 1932 ‘‘(A) AUTHORITY.—The Secretary of Agriculture shall determine, in accordance with subparagraph (B), the price at which a note or other obligation shall be offered for sale under this subsection. ‘‘(B) PRICE.—Such price shall be determined by discounting the payment stream of such note or other obligation at the yield on the then most re- cent sale of the portfolio, adjusted for changes in market interest rates, servicing and sales expenses, and the maturity and interest rate of such note. ‘‘(3) PROHIBITIONS.— ‘‘(A) PURCHASE OF OBLIGATION NOT TIED TO PUR- CHASE OF OTHER OBLIGATIONS.—The Secretary of Ag- riculture shall not require the issuer of any unsold note or other obligation to be offered for sale under this subsection to purchase any other such note or other obligation as a condition of the sale of any such note or other obligation to the issuer. ‘‘(B) OFFER TO BE MADE WITHOUT REGARD TO FI- NANCING.—The Secretary shall offer notes or other obligations for sale to the issuers thereof under this subsection without regard to the manner in which such issuers intend to finance the purchase of such notes or other obligations. However, the price of sale to any issuer using tax exempt financing shall be determined using a yield reflective of the Sched- ule of Certified Interest Rates as published monthly by the Secretary of the Treasury. ‘‘(g) APPLICABILITY OF PROHIBITION ON CURTAILMENT OR LIMITATION OF SERVICE.—Section 306(b) of the Con- solidated Farm and Rural Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes or other obliga- tions sold or intended to be sold under this section. ‘‘(h)(1) Notwithstanding the provisions of section 633 of the Rural Development, Agriculture, and Related Agencies Appropriations Act, 1989 (Public Law 100–460) [title VI, Oct. 1, 1988, 102 Stat. 2263], the Secretary of Agriculture shall offer to the issuer of any unsold note or other obligation described in paragraph (2)(A) for which such issuer made the good faith deposit described in paragraph (2)(A) the opportunity to purchase such note or other obligation consistent with the provisions of this subsection and subsections (f)(2) and (f)(3). ‘‘(2) The provisions of this subsection shall apply only to those issuers who: ‘‘(A) on or before March 9, 1989, made a good faith deposit under this section for fiscal year 1989 with the Secretary to purchase a note or other obligation held in the Rural Development Insurance Fund; and ‘‘(B) otherwise meet all eligibility criteria, as such criteria existed immediately prior to May 9, 1989, at the time the purchase occurs under this subsection. ‘‘(3) The opportunity to purchase any such note or other obligation shall be held open, under the policies and procedures in effect under subsections (f)(2) and (f)(3) immediately prior to May 9, 1989, for 150 days after the date of enactment of this subsection [Dec. 12, 1989]. The Secretary shall not require any further good faith deposit from issuers who qualify under this sub- section. The Secretary shall notify eligible issuers of the opportunity afforded under this subsection within 30 days after the date of enactment of this subsection and may require such issuers to express an intention to purchase their note or other obligation by a date cer- tain.’’ Pub. L. 99–500, title III, § 381, Oct. 18, 1986, 100 Stat. 1783–369, and Pub. L. 99–591, title III, § 381, Oct. 30, 1986, 100 Stat. 3341–372, provided that: ‘‘(a) IN GENERAL.—The Secretary of Agriculture shall, under such terms as the Secretary may prescribe, sell notes and other obligations held in the Rural Develop- ment Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a) in such amounts as to realize net proceeds of not less than— ‘‘(1) $25,000,000 from such sales during fiscal year 1987; ‘‘(2) $36,000,000 from such sales during fiscal year 1988; and ‘‘(3) $37,000,000 from such sales during fiscal year 1989. ‘‘(b) [Amended subsec. (e) of this section] ‘‘(c) FARM CREDIT SYSTEM INSTITUTIONS.—Notwith- standing any other provision of law, institutions of the Farm Credit System operating under the Farm Credit Act of 1971 (12 U.S.C. 2001) shall be eligible to purchase notes and other obligations held in the Rural Develop- ment Insurance Fund and to service (including the ex- tension of additional credit and all other actions nec- essary to preserve, conserve, or protect the institu- tions’ interests in such notes and other obligations), collect, and dispose of such notes and other obligations, subject only to such terms and conditions as may be agreed to by the Secretary of Agriculture and such pur- chasing institutions and as are approved by the Farm Credit Administration.’’ § 1929b. Purchase of guaranteed portions of loans; terms and conditions; exercise of au- thorities The Secretary may purchase, on such terms and conditions as the Secretary deems appro- priate, the guaranteed portion of any loan guar- anteed under this chapter: Provided, That the Secretary may not pay for any such guaranteed portion of a loan in excess of an amount equal to the unpaid principal balance and accrued inter- est on the guaranteed portion of the loan. The Secretary may use for such purchases funds from the Rural Development Insurance Fund with respect to rural development loans as de- fined in section 1929a(a) of this title and funds from the Agricultural Credit Insurance Fund with respect to all other loans under this chap- ter. This authority may be exercised only if the Secretary determines that an adequate sec- ondary market is not available in the private sector. (Pub. L. 87–128, title III, § 309B, as added Pub. L. 95–334, title I, § 111, Aug. 4, 1978, 92 Stat. 424.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. § 1930. Continued availability of appropriated funds for direct real estate loans to farmers and ranchers Funds appropriated for the purpose of making direct real estate loans to farmers and ranchers under this subchapter shall remain available until expended. (Pub. L. 87–128, title III, § 310, as added Pub. L. 91–524, title VIII, § 806(b), Nov. 30, 1970, 84 Stat. 1383.) § 1931. Repealed. Pub. L. 104–127, title VII, § 746, Apr. 4, 1996, 110 Stat. 1125 Section, Pub. L. 87–128, title III, § 310A, as added Pub. L. 92–419, title I, § 117, Aug. 30, 1972, 86 Stat. 663, related to insured watershed and resource conservation and de- velopment loans. § 1932. Assistance for rural entities (a) Loans to private business enterprises (1) Definitions In this subsection: Page 1090 TITLE 7—AGRICULTURE § 1932 (A) Aquaculture The term ‘‘aquaculture’’ means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes in- cluding the culture and growing of fish by private industry for the purpose of creating or augmenting publicly owned and regulated stocks of fish. (B) Solar energy The term ‘‘solar energy’’ means energy de- rived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Develop- ment Act of 1974, as amended [42 U.S.C. 5901 et seq.]. (2) Loan purposes The Secretary may make and insure loans to public, private, or cooperative organizations organized for profit or nonprofit and private investment funds that invest primarily in co- operative organizations, to Indian tribes on Federal and State reservations or other feder- ally recognized Indian tribal groups, or to in- dividuals for the purposes of— (A) improving, developing, or financing business, industry, and employment (includ- ing through the financing of working cap- ital) and improving the economic and envi- ronmental climate in rural communities, in- cluding pollution abatement and control; (B) the conservation, development, and use of water for aquaculture purposes in rural areas; (C) reducing the reliance on nonrenewable energy resources by encouraging the devel- opment and construction of solar energy sys- tems and other renewable energy systems (including wind energy systems and anaer- obic digestors for the purpose of energy gen- eration), including the modification of exist- ing systems, in rural areas; and (D) to facilitate economic opportunity for industries undergoing adjustment from ter- minated Federal agricultural price and in- come support programs or increased com- petition from foreign trade. (3) Loan guarantees Loans described in paragraph (2), when origi- nated, held, and serviced by other lenders, may be guaranteed by the Secretary under this section without regard to paragraphs (1) and (4) of section 1983 of this title. (4) Maximum amount of principal No loan may be made, insured, or guaran- teed under this subsection that exceeds $25,000,000 in principal amount. (b) Solid waste management grants (1) In general The Secretary may make grants to nonprofit organizations for the provision of regional technical assistance to local and regional gov- ernments and related agencies for the purpose of reducing or eliminating pollution of water resources and improving the planning and management of solid waste disposal facilities. Grants made under this paragraph for the pro- vision of technical assistance shall be made for 100 percent of the cost of such assistance. (2) Authorization of appropriations There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2014 through 2023. (c) Rural business development grants (1) In general The Secretary may make grants under this subsection to eligible entities described in paragraph (2) in rural areas that primarily serve rural areas for purposes described in paragraph (3). (2) Eligible entities The Secretary may make grants under this subsection to— (A) governmental entities; (B) Indian tribes; and (C) nonprofit entities. (3) Eligible purposes for grants Eligible entities that receive grants under this subsection may use the grant funds for— (A) business opportunity projects that— (i) identify and analyze business oppor- tunities; (ii) identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers; (iii) assist in the establishment of new rural businesses and the maintenance of existing businesses, including through business support centers; (iv) conduct regional, community, and local economic development planning and coordination, and leadership development; and (v) establish centers for training, tech- nology, and trade that will provide train- ing to rural businesses in the use of inter- active communications technologies to de- velop international trade opportunities and markets; or (B) projects that support the development of business enterprises that finance or facili- tate— (i) the development of small and emerg- ing private business enterprise; (ii) the establishment, expansion, and operation of rural distance learning net- works; (iii) the development of rural learning programs that provide educational in- struction or job training instruction re- lated to potential employment or job ad- vancement to adult students; and (iv) the provision of technical assistance and training to rural communities for the purpose of improving passenger transpor- tation services or facilities. (4) Authorization of appropriations (A) In general There is authorized to be appropriated to the Secretary to carry out this subsection $65,000,000 for each of fiscal years 2014 through 2023, to remain available until ex- pended. (B) Allocation Of the funds made available under sub- paragraph (A) for a fiscal year, not more Page 1091 TITLE 7—AGRICULTURE § 1932 than 10 percent shall be used for the pur- poses described in paragraph (3)(A). (d) Joint loans or grants for private business en- terprises; restrictions; system of certification for expeditious processing of requests for as- sistance; prior approval of grant or loan; eq- uity investment as condition for loan com- mitment; issuance of certificates of beneficial ownership of notes (1) The Secretary may participate in joint fi- nancing to facilitate development of private business enterprises in rural areas with the Eco- nomic Development Administration, the Small Business Administration, and the Department of Housing and Urban Development and other Fed- eral and State agencies and with private and quasi-public financial institutions, through joint loans to applicants eligible under sub- section (a) for the purpose of improving, devel- oping, or financing business, industry, and em- ployment and improving the economic and envi- ronmental climate in rural areas or through joint grants to applicants eligible under sub- section (c) for such purposes, including in the case of loans or grants the development, con- struction, or acquisition of land, buildings, plants, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities, refin- ing, service and fees. (2) No financial or other assistance shall be ex- tended under any provision of this section, ex- cept for cases in which such assistance does not exceed $1,000,000 or for cases in which direct em- ployment will not be increased by more than fifty employees, that is calculated to or is likely to result in the transfer from one area to an- other of any employment or business activity provided by operations of the applicant, but this limitation shall not be construed to prohibit as- sistance for the expansion of an existing busi- ness entity through the establishment of a new branch, affiliate, or subsidiary of such entity if the establishment of such branch, affiliate, or subsidiary will not result in an increase in un- employment in the area of original location or in any other area where such entity conducts business operations unless there is reason to be- lieve that such branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business en- tity in the area of its original location or in any other area where it conducts such operations. (3) No financial or other assistance shall be ex- tended under any provision of this section, ex- cept for cases in which such assistance does not exceed $1,000,000 or for cases in which direct em- ployment will not be increased by more than fifty employees, which is calculated to or likely to result in an increase in the production of goods, materials, or commodities, or the avail- ability of services or facilities in the area, when there is not sufficient demand for such goods, materials, commodities, services, or facilities, to employ the efficient capacity of existing com- petitive commercial or industrial enterprises, unless such financial or other assistance will not have an adverse effect upon existing com- petitive enterprises in the area. (4) No financial or other assistance shall be ex- tended under any provision of this section, ex- cept for cases in which such assistance does not exceed $1,000,000 or for cases in which direct em- ployment will not be increased by more than fifty employees, if the Secretary of Labor cer- tifies within 30 days after the matter has been submitted to him by the Secretary of Agri- culture that the provisions of paragraphs (2) and (3) of this subsection have not been complied with. The Secretary of Labor shall, in coopera- tion with the Secretary of Agriculture, develop a system of certification which will insure the expeditious processing of requests for assistance under this section. (5) No grant or loan authorized to be made under this chapter shall require or be subject to the prior approval of any officer, employee, or agency of any State. (6) No loan commitment issued under this sec- tion shall be conditioned upon the applicant in- vesting in excess of 10 per centum in the busi- ness or industrial enterprise for which purpose the loan is to be made unless the Secretary de- termines there are special circumstances which necessitate an equity investment by the appli- cant greater than 10 per centum. (7) No provision of law shall prohibit issuance by the Secretary of certificates evidencing bene- ficial ownership in a block of notes insured or guaranteed under this chapter or Title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.]; any sale by the Secretary of such certificates shall be treated as a sale of assets for the purposes of chapter 11 of title 31. Any security representing beneficial ownership in a block of notes guaran- teed or insured under this chapter or Title V of the Housing Act of 1949 issued by a private enti- ty shall be exempt from laws administered by the Securities and Exchange Commission, ex- cept sections 77q, 77v, and 77x of title 15; how- ever, the Secretary shall require (i) that the issuer place such notes in the custody of an in- stitution chartered by a Federal or State agency to act as trustee and (ii) that the issuer provide such periodic reports of sales as the Secretary deems necessary. (e) Rural cooperative development grants (1) Definitions In this subsection: (A) Nonprofit institution The term ‘‘nonprofit institution’’ means any organization or institution, including an accredited institution of higher education, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual. (B) United States The term ‘‘United States’’ means the sev- eral States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the other territories and possessions of the United States. (2) Grants The Secretary shall make grants effective October 1, 1996, under this subsection to non- profit institutions for the purpose of enabling the institutions to establish and operate cen- ters for rural cooperative development. Page 1092 TITLE 7—AGRICULTURE § 1932 1 So in original. Probably should be ‘‘centers.’’ (3) Goals The goals of a center funded under this sub- section shall be to facilitate the creation of jobs in rural areas through the development of new rural cooperatives, value added proc- essing, and rural businesses. (4) Application Any nonprofit institution seeking a grant under paragraph (2) shall submit to the Sec- retary an application containing a plan for the establishment and operation by the institu- tion of a center or centers for cooperative de- velopment. The Secretary may approve the ap- plication if the plan contains the following: (A) A provision that substantiates that the center will effectively serve rural areas in the United States. (B) A provision that the primary objective of the center will be to improve the eco- nomic condition of rural areas through coop- erative development. (C) A description of the activities that the center will carry out to accomplish the ob- jective. The activities may include the fol- lowing: (i) Programs for applied research and feasibility studies that may be useful to individuals, cooperatives, small busi- nesses, and other similar entities in rural areas served by the center. (ii) Programs for the collection, inter- pretation, and dissemination of informa- tion that may be useful to individuals, co- operatives, small businesses, and other similar entities in rural areas served by the center. (iii) Programs providing training and in- struction for individuals, cooperatives, small businesses, and other similar enti- ties in rural areas served by the center. (iv) Programs providing loans and grants to individuals, cooperatives, small busi- nesses, and other similar entities in rural areas served by the center. (v) Programs providing technical assist- ance, research services, and advisory serv- ices to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. (vi) Programs providing for the coordina- tion of services and sharing of information among the center.1 (D) A description of the contributions that the activities are likely to make to the im- provement of the economic conditions of the rural areas for which the center will provide services. (E) Provisions that the center, in carrying out the activities, will seek, where appro- priate, the advice, participation, expertise, and assistance of representatives of busi- ness, industry, educational institutions, the Federal Government, and State and local governments. (F) Provisions that the center will take all practicable steps to develop continuing sources of financial support for the center, particularly from sources in the private sec- tor. (G) Provisions for— (i) monitoring and evaluating the activi- ties by the nonprofit institution operating the center; and (ii) accounting for money received by the institution under this section. (5) Awarding grants Grants made under paragraph (2) shall be made on a competitive basis. In making grants under paragraph (2), the Secretary shall give preference to grant applications providing for the establishment of centers for rural coopera- tive development that— (A) demonstrate a proven track record in carrying out activities to promote and assist the development of cooperatively and mutu- ally owned businesses; (B) demonstrate previous expertise in pro- viding technical assistance in rural areas to promote and assist the development of coop- eratively and mutually owned businesses; (C) demonstrate the ability to assist in the retention of businesses, facilitate the estab- lishment of cooperatives and new coopera- tive approaches, and generate employment opportunities that will improve the eco- nomic conditions of rural areas; (D) commit to providing technical assist- ance and other services to underserved and economically distressed areas in rural areas of the United States; (E) demonstrate a commitment to— (i) networking with and sharing the re- sults of the efforts of the center with other cooperative development centers and other organizations involved in rural economic development efforts; and (ii) developing multiorganization and multistate approaches to addressing the economic development and cooperative needs of rural areas; and (F) commit to providing a 25 percent matching contribution with private funds and in-kind contributions, except that the Secretary shall not require non-Federal fi- nancial support in an amount that is greater than 5 percent in the case of a 1994 institu- tion (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)). (6) Grant period (A) In general A grant awarded to a center that has re- ceived no prior funding under this sub- section shall be made for a period of 1 year. (B) Multiyear grants If the Secretary determines it to be in the best interest of the program, the Secretary shall award grants for a period of more than 1 year, but not more than 3 years, to a cen- ter that has successfully met the parameters described in paragraph (5), as determined by the Secretary. (7) Authority to extend grant period The Secretary may extend for 1 additional 12-month period the period in which a grantee may use a grant made under this subsection. Page 1093 TITLE 7—AGRICULTURE § 1932 (8) Technical assistance to prevent excessive unemployment or underemployment In carrying out this subsection, the Sec- retary may provide technical assistance to al- leviate or prevent conditions of excessive un- employment, underemployment, outmigra- tion, or low employment growth in economi- cally distressed rural areas that the Secretary determines have a substantial need for the as- sistance. The assistance may include planning and feasibility studies, management and oper- ational assistance, and studies evaluating the need for development potential of projects that increase employment and improve eco- nomic growth in the areas. (9) Grants to defray administrative costs The Secretary may make grants to defray not to exceed 75 percent of the costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under this subsection. For purposes of determining the non-Federal share of the costs, the Secretary shall consider contribu- tions in cash and in kind, fairly evaluated, in- cluding premises, equipment, and services. (10) Cooperative research program The Secretary shall enter into a cooperative research agreement with 1 or more qualified academic institutions in each fiscal year to conduct research (including research and anal- ysis based on data from the latest available Economic Census conducted by the Bureau of the Census) on the effects of all types of co- operatives on the national economy. (11) Addressing needs of minority communities (A) Definition of socially disadvantaged group In this paragraph, the term ‘‘socially dis- advantaged group’’ has the meaning given the term in section 2003(e) of this title. (B) Reservation of funds (i) In general If the total amount appropriated under paragraph (13) for a fiscal year exceeds $7,500,000, the Secretary shall reserve an amount equal to 20 percent of the total amount appropriated for grants for cooper- ative development centers, individual co- operatives, or groups of cooperatives— (I) that serve socially disadvantaged groups; and (II) a majority of the boards of direc- tors or governing boards of which are comprised of individuals who are mem- bers of socially disadvantaged groups. (ii) Insufficient applications To the extent there are insufficient ap- plications to carry out clause (i), the Sec- retary shall use the funds as otherwise au- thorized by this subsection. (12) Interagency working group Not later than 90 days after February 7, 2014, the Secretary shall coordinate and chair an interagency working group to foster coopera- tive development and ensure coordination with Federal agencies and national and local cooperative organizations that have coopera- tive programs and interests. (13) Authorization of appropriations There are authorized to be appropriated to carry out this subsection $40,000,000 for each of fiscal years 2014 through 2023. (f) Repealed. Pub. L. 115–334, title VI, § 6601(a)(1)(B), Dec. 20, 2018, 132 Stat. 4775 (g) Business and industry direct and guaranteed loans (1) Definition of business and industry loan 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) Loan guarantees for the purchase of coop- erative stock (A) In general The Secretary may guarantee a business and industry loan to individual farmers or ranchers for the purpose of purchasing cap- ital stock of a farmer or rancher cooperative established for the purpose of processing an agricultural commodity. (B) Processing contracts during initial pe- riod A cooperative described in subparagraph (A) for which a farmer or rancher receives a guarantee to purchase stock under subpara- graph (A) may contract for services to proc- ess 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 plan- ning and construction of the processing fa- cility of the cooperative. (C) Financial information Financial information required by the Sec- retary from a farmer or rancher as a condi- tion of making a business and industry loan guarantee under this paragraph shall be pro- vided in the manner generally required by commercial agricultural lenders in the area. (3) Loans to cooperatives (A) Eligibility (i) In general The Secretary may make or guarantee a business and industry loan to a coopera- tive organization that is headquartered in a metropolitan area if the loan is used for a project or venture described in sub- section (a) that is located in a rural area or a loan guarantee that meets the re- quirements of paragraph (6). (ii) Equity 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 pri- marily in cooperative organizations, if the guarantee significantly benefits 1 or more Page 1094 TITLE 7—AGRICULTURE § 1932 entities eligible for assistance for the pur- poses described in subsection (a)(1), as de- termined by the Secretary. (B) Refinancing A cooperative organization that is eligible for a business and industry loan shall be eli- gible to refinance an existing business and industry loan with a lender if— (i) the cooperative organization— (I) is current and performing with re- spect to the existing loan; and (II) is not, and has not been, in pay- ment default, or the collateral of which has not been converted, with respect to the existing loan; and (ii) there is adequate security or full col- lateral for the refinanced loan. (4) Loan appraisals The Secretary may require that any ap- praisal made in connection with a business and industry loan be conducted by a special- ized appraiser that uses standards that are similar to standards used for similar purposes in the private sector, as determined by the Secretary. (5) Fees 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) Loan guarantees in nonrural areas (A) In general The Secretary may guarantee a business and industry loan to a cooperative organiza- tion for a facility that is not located in a rural area if— (i) the primary purpose of the loan guar- antee is for a facility to provide value- added processing for agricultural pro- ducers 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 employ- ment for residents of a rural area; and (iii) the total amount of business and in- dustry 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 sub- section (a)(2)(A). (B) Principal amounts The principal amount of a business and in- dustry loan guaranteed under this paragraph may not exceed $25,000,000. (7) Intangible assets (A) In general In determining whether a cooperative or- ganization is eligible for a guaranteed busi- ness and industry loan, the Secretary may consider the market value of a properly ap- praised brand name, patent, or trademark of the cooperative. (B) Accounts receivable In the discretion of the Secretary, if the Secretary determines that the action would not create or otherwise contribute to an un- reasonable risk of default or loss to the Fed- eral Government, the Secretary may take accounts receivable as security for the obli- gations entered into in connection with loans and a borrower may use accounts re- ceivable as collateral to secure a loan made or guaranteed under this subsection. (8) Limitations on loan guarantees for coopera- tive organizations (A) Principal amount (i) In general 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) Use 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 proc- essing of agricultural commodities; or (II) significantly benefits 1 or more en- tities eligible for assistance for the pur- poses described in subsection (a)(1), as determined by the Secretary. (B) Applications If a cooperative organization submits an application for a guarantee under this sub- section 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, ap- prove the application; and (ii) may not delegate the approval au- thority. (C) Maximum amount The total amount of business and industry loans made to cooperative organizations and guaranteed for a fiscal year under this sub- section with principal amounts that are in excess of $25,000,000 may not exceed 10 per- cent of the business and industry loans guar- anteed for the fiscal year under subsection (a)(2)(A). (9) Locally or regionally produced agricultural food products (A) Definitions In this paragraph: (i) Locally or regionally produced agricul- tural food product The term ‘‘locally or regionally produced agricultural food product’’ means any ag- ricultural food product that is raised, pro- duced, and distributed in— (I) the locality or region in which the final product is marketed, so that the total distance that the product is trans- ported is less than 400 miles from the ori- gin of the product; or (II) the State in which the product is produced. Page 1095 TITLE 7—AGRICULTURE § 1932 2 So in original. The word ‘‘section’’ probably should appear. (ii) Underserved community 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 inse- curity or a high poverty rate. (B) Loan and loan guarantee program (i) In general The Secretary shall make or guarantee loans to individuals, cooperatives, cooper- ative organizations, businesses, and other entities to establish and facilitate enter- prises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support community development and farm and ranch income. (ii) Requirement The recipient of a loan or loan guarantee under clause (i) shall include in an appro- priate agreement with retail and institu- tional facilities to which the recipient sells locally or regionally produced agri- cultural food products a requirement to in- form consumers of the retail or institu- tional facilities that the consumers are purchasing or consuming locally or region- ally produced agricultural food products. (iii) Priority In making or guaranteeing a loan under clause (i), the Secretary shall give priority to projects that have components benefit- ting underserved communities. (iv) Reservation of funds (I) In general For each of fiscal years 2008 through 2023, the Secretary shall reserve not less than 5 percent of the funds made avail- able to carry out this subsection to carry out this subparagraph. (II) Availability of funds Funds reserved under subclause (I) for a fiscal year shall be reserved until April 1 of the fiscal year. (h) Loan guarantees for certain loans The Secretary may guarantee loans made under subsection (a) to finance the issuance of bonds for the projects described in section 1926(a)(24) of this title. (i) Appropriate technology transfer for rural areas program (1) Definition of national nonprofit agricul- tural assistance institution In this subsection, the term ‘‘national non- profit agricultural assistance institution’’ means an organization that— (A) is described in section 501(c)(3) of title 26 and exempt from taxation under 2 501(a) of that title; (B) has staff and offices in multiple regions of the United States; (C) has experience and expertise in oper- ating national agriculture technical assist- ance programs; (D) expands markets for the agricultural commodities produced by producers through the use of practices that enhance the envi- ronment, natural resource base, and quality of life; and (E) improves the economic viability of ag- ricultural operations. (2) Establishment The Secretary shall establish a national ap- propriate technology transfer for rural areas program to assist agricultural producers that are seeking information to— (A) reduce input costs; (B) conserve energy resources; (C) diversify operations through new en- ergy crops and energy generation facilities; and (D) expand markets for agricultural com- modities produced by the producers by using practices that enhance the environment, natural resource base, and quality of life. (3) Implementation (A) In general The Secretary shall carry out the program under this subsection by making a grant to, or offering to enter into a cooperative agree- ment with, a national nonprofit agricultural assistance institution. (B) Grant amount A grant made, or cooperative agreement entered into, under subparagraph (A) shall provide 100 percent of the cost of providing information described in paragraph (2). (4) Authorization of appropriations There are authorized to be appropriated to carry out this subsection $5,000,000 for each of fiscal years 2008 through 2023. (j) Rural economic area partnership zones Effective beginning on the date of enactment of this subsection through September 30, 2023, the Secretary shall carry out those rural eco- nomic area partnership zones administratively in effect on the date of enactment of this sub- section in accordance with the terms and condi- tions contained in the memorandums of agree- ment entered into by the Secretary for the rural economic area partnership zones, except as oth- erwise provided in this subsection. (Pub. L. 87–128, title III, § 310B, as added Pub. L. 92–419, title I, § 118(a), Aug. 30, 1972, 86 Stat. 663; amended Pub. L. 91–524, title VIII, § 817, as added Pub. L. 93–86, § 1(27)(B), Aug. 10, 1973, 87 Stat. 241; Pub. L. 95–113, title XV, § 1503(b), Sept. 29, 1977, 91 Stat. 1021; Pub. L. 95–334, title I, § 112, Aug. 4, 1978, 92 Stat. 424; Pub. L. 96–358, § 5, Sept. 25, 1980, 94 Stat. 1187; Pub. L. 96–438, § 1(2), Oct. 13, 1980, 94 Stat. 1871; Pub. L. 99–409, § 2, Aug. 28, 1986, 100 Stat. 923; Pub. L. 100–203, title I, § 1504, Dec. 22, 1987, 101 Stat. 1330–28; Pub. L. 101–624, title XXIII, §§ 2325, 2337, 2347, formerly 2347(a), 2386, 2388(b), (c), Nov. 28, 1990, 104 Stat. 4013, 4022, 4034, 4051, 4052; Pub. L. 102–237, title VII, § 701(c), Page 1096 TITLE 7—AGRICULTURE § 1932 (h)(1)(C), (D), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub. L. 102–552, title V, § 516(d), Oct. 28, 1992, 106 Stat. 4137; Pub. L. 102–554, § 6, Oct. 28, 1992, 106 Stat. 4144; Pub. L. 104–127, title VI, §§ 635(b), 661(d), title VII, §§ 705(1), 747(a), 759B, Apr. 4, 1996, 110 Stat. 1093, 1107, 1112, 1125, 1138; Pub. L. 104–180, title VII, § 731, Aug. 6, 1996, 110 Stat. 1600; Pub. L. 107–171, title VI, §§ 6007(b), 6013–6017, May 13, 2002, 116 Stat. 355, 358, 359; Pub. L. 110–234, title VI, §§ 6012(a), (b)(2), 6013–6017, May 22, 2008, 122 Stat. 1164–1169; Pub. L. 110–246, § 4(a), title VI, §§ 6012(a), (b)(2), 6013–6017, June 18, 2008, 122 Stat. 1664, 1925, 1927–1931; Pub. L. 113–79, title VI, §§ 6010(a), (b), 6011, 6012(a), 6013–6016, Feb. 7, 2014, 128 Stat. 843–845; Pub. L. 113–188, title I, § 101(c), Nov. 26, 2014, 128 Stat. 2017; Pub. L. 115–334, title VI, §§ 6410–6415, 6601(a)(1)(B), 6701(c), (d)(1), Dec. 20, 2018, 132 Stat. 4762, 4775, 4778.) Editorial Notes REFERENCES IN TEXT The Federal Nonnuclear Energy Research and Devel- opment Act of 1974, referred to in subsec. (a)(1)(B), is Pub. L. 93–577, Dec. 31, 1974, 88 Stat. 1878, which is clas- sified generally to chapter 74 (§ 5901 et seq.) of Title 42, The Public Health and Welfare. For complete classi- fication of this Act to the Code, see Short Title note set out under section 5901 of Title 42 and Tables. This chapter, referred to in subsec. (d)(5), (7), was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consoli- dated Farm and Rural Development Act, which is clas- sified principally to this chapter. For complete classi- fication of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. Title V of the Housing Act of 1949, referred to in sub- sec. (d)(7), is title V of act July 15, 1949, ch. 338, 63 Stat. 432, which is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of Title 42, The Public Health and Welfare. For complete classification of this Act to the code, see References in Text note set out under section 1441 of Title 42 and Tables. The date of enactment of this subsection, referred to in subsec. (j), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. CODIFICATION In subsec. (d)(7), ‘‘chapter 11 of title 31’’ substituted for ‘‘the Budget and Accounting Act of 1921 [31 U.S.C. 1 et seq.]’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. The authorities provided by each provision of, and each amendment made by, Pub. L. 115–334, as in effect on Sept. 30, 2023, to continue, and authorities to be car- ried out, until the later of Sept. 30, 2024, or the date specified in the provision of, or amendment made by, Pub. L. 115–334, see section 102(a) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title. The authorities provided by each provision of, and each amendment made by, Pub. L. 110–246, as in effect on Sept. 30, 2012, to continue, and the Secretary of Ag- riculture to carry out the authorities, until the later of Sept. 30, 2013, or the date specified in the provision of, or amendment made by, Pub. L. 110–246, see section 701(a) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title. Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2018—Subsec. (b)(2). Pub. L. 115–334, § 6410, substituted ‘‘2023’’ for ‘‘2018’’. Subsec. (c)(3)(A)(v). Pub. L. 115–334, § 6701(c), sub- stituted ‘‘markets; or’’ for ‘‘markets; and’’. Subsec. (c)(4)(A). Pub. L. 115–334, § 6411, substituted ‘‘2023’’ for ‘‘2018’’. Subsec. (e)(5)(F). Pub. L. 115–334, § 6701(d)(1), inserted before period at end ‘‘, except that the Secretary shall not require non-Federal financial support in an amount that is greater than 5 percent in the case of a 1994 insti- tution (as defined in section 532 of the Equity in Edu- cational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382))’’. Subsec. (e)(10). Pub. L. 115–334, § 6412(a)(1), inserted ‘‘(including research and analysis based on data from the latest available Economic Census conducted by the Bureau of the Census)’’ after ‘‘conduct research’’. Subsec. (e)(11)(B)(i). Pub. L. 115–334, § 6412(b), sub- stituted ‘‘(13)’’ for ‘‘(12)’’ in introductory provisions. Subsec. (e)(13). Pub. L. 115–334, § 6412(a)(2), substituted ‘‘2023’’ for ‘‘2018’’. Subsec. (f). Pub. L. 115–334, § 6601(a)(1)(B), struck out subsec. (f) which related to grants to broadcasting sys- tems. Subsec. (g)(9)(B)(iv)(I). Pub. L. 115–334, § 6413, sub- stituted ‘‘2023’’ for ‘‘2018’’. Subsec. (i)(4). Pub. L. 115–334, § 6414, substituted ‘‘2023’’ for ‘‘2018’’. Subsec. (j). Pub. L. 115–334, § 6415, substituted ‘‘2023’’ for ‘‘2018’’. 2014—Subsec. (a)(2)(A). Pub. L. 113–79, § 6010(a), in- serted ‘‘(including through the financing of working capital)’’ after ‘‘employment’’. Subsec. (b). Pub. L. 113–79, § 6011, designated existing provisions as par. (1), inserted heading, and added par. (2). Subsec. (c). Pub. L. 113–79, § 6012(a), added subsec. (c) and struck out former subsec. (c) which related to rural business enterprise grants. Subsec. (e)(12), (13). Pub. L. 113–79, § 6013, added par. (12), redesignated former par. (12) as (13), and sub- stituted ‘‘$40,000,000 for each of fiscal years 2014 through 2018’’ for ‘‘$50,000,000 for each of fiscal years 2008 through 2012’’. Subsec. (g)(7). Pub. L. 113–79, § 6010(b), designated ex- isting provisions as subpar. (A), inserted heading, and added subpar. (B). Subsec. (g)(9)(B)(iv), (v). Pub. L. 113–188 redesignated cl. (v) as (iv) and struck out former cl. (iv) which re- quired annual reports describing projects carried out using loans or loan guarantees made under cl. (i). Subsec. (g)(9)(B)(v)(I). Pub. L. 113–79, § 6014, sub- stituted ‘‘2018’’ for ‘‘2012’’. Subsec. (i)(4). Pub. L. 113–79, § 6015, substituted ‘‘2018’’ for ‘‘2012’’. Subsec. (j). Pub. L. 113–79, § 6016, substituted ‘‘2018’’ for ‘‘2012’’. 2008—Pub. L. 110–246, § 6012(a)(1), inserted section catchline. Subsec. (a). Pub. L. 110–246, § 6012(a)(1), (2), inserted subsec. heading, inserted par. (1) heading and introduc- tory provisions, designated former fourth sentence as subpar. (A), inserted subpar. heading, substituted ‘‘The’’ for ‘‘As used in this subsection, the’’, designated former second sentence as subpar. (B), inserted subpar. heading, substituted ‘‘The’’ for ‘‘For the purposes of this subsection, the’’, designated former first sentence as par. (2), inserted par. heading, in introductory provi- sions, substituted ‘‘The Secretary may’’ for ‘‘The Sec- retary may also’’ and inserted ‘‘and private investment funds that invest primarily in cooperative organiza- tions’’ after ‘‘nonprofit’’, redesignated former cls. (1) to (4) as subpars. (A) to (D), respectively, designated former third sentence as par. (3), inserted par. heading, substituted ‘‘Loans described in paragraph (2)’’ for ‘‘Such loans’’, and designated former fifth sentence as par. (4) and inserted par. heading. Subsec. (e)(5)(A). Pub. L. 110–246, § 6013(a)(1), sub- stituted ‘‘carrying out activities to promote and assist the development of cooperatively and mutually owned businesses’’ for ‘‘administering a nationally coordi- nated, regionally or State-wide operated project’’. Page 1097 TITLE 7—AGRICULTURE § 1932 Subsec. (e)(5)(B). Pub. L. 110–246, § 6013(a)(2), inserted ‘‘to promote and assist the development of coopera- tively and mutually owned businesses’’ before semi- colon at end. Subsec. (e)(5)(D), (E). Pub. L. 110–246, § 6013(a)(3)–(6), added subpar. (E), redesignated former subpar. (E) as (D), struck out ‘‘and’’ at end, and struck out former subpar. (D) which read as follows: ‘‘demonstrate the ability to create horizontal linkages among businesses within and among various sectors in rural areas of the United States and vertical linkages to domestic and international markets;’’. Subsec. (e)(5)(F). Pub. L. 110–246, § 6013(a)(7), struck out ‘‘greater than’’ before ‘‘a 25 percent’’. Subsec. (e)(6). Pub. L. 110–246, § 6013(b), added par. (6) and struck out former par. (6). Prior to amendment, text read as follows: ‘‘The Secretary shall make grants under this subsection for a period of 1 year. The Sec- retary shall evaluate programs receiving assistance under this subsection. If the Secretary determines it to be in the best interest of the program, the Secretary may award an additional grant to the program for the immediately succeeding year without application for the grant.’’ Subsec. (e)(7) to (12). Pub. L. 110–246, § 6013(c)–(f), added pars. (7), (10), and (11), redesignated former pars. (7) to (9) as (8), (9), and (12), respectively, and in par. (12), substituted ‘‘2008 through 2012’’ for ‘‘1996 through 2007’’. Subsec. (f)(3). Pub. L. 110–246, § 6014, substituted ‘‘2008 through 2012’’ for ‘‘2002 through 2007’’. Subsec. (g)(1). Pub. L. 110–246, § 6012(a)(3)(A), (b)(2), substituted ‘‘subsection (a)(2)(A)’’ for ‘‘subsection (a)(1)’’ and inserted ‘‘, including guarantees described in paragraph (3)(A)(ii)’’ before period at end. Subsec. (g)(3)(A). Pub. L. 110–246, § 6012(a)(3)(B), sub- stituted ‘‘Eligibility’’ for ‘‘In general’’ in subpar. head- ing, designated existing provisions as cl. (i), inserted heading, and added cl. (ii). Subsec. (g)(6)(A)(iii). Pub. L. 110–246, § 6012(b)(2), sub- stituted ‘‘subsection (a)(2)(A)’’ for ‘‘subsection (a)(1)’’. Subsec. (g)(8)(A)(ii). Pub. L. 110–246, § 6012(a)(3)(C), in- serted ‘‘that’’ after ‘‘project’’ in introductory provi- sions, added subcls. (I) and (II), and struck out former subcls. (I) and (II) which read as follows: ‘‘(I) in a rural area; and ‘‘(II) that provides for the value-added processing of agricultural commodities.’’ Subsec. (g)(8)(C). Pub. L. 110–246, § 6012(b)(2), sub- stituted ‘‘subsection (a)(2)(A)’’ for ‘‘subsection (a)(1)’’. Subsec. (g)(9). Pub. L. 110–246, § 6015, added par. (9). Subsecs. (i), (j). Pub. L. 110–246, §§ 6016, 6017, added subsecs. (i) and (j). 2002—Subsec. (a)(3). Pub. L. 107–171, § 6013, inserted ‘‘and other renewable energy systems (including wind energy systems and anaerobic digestors for the purpose of energy generation)’’ after ‘‘solar energy systems’’. Subsec. (c)(1). Pub. L. 107–171, § 6014, substituted ‘‘Grants’’ for ‘‘In general’’ in heading, designated exist- ing provisions as subpar. (A) and inserted heading, and added subpar. (B). Subsec. (e)(5)(F). Pub. L. 107–171, § 6015(1), which di- rected amendment of this section ‘‘in paragraph (5)(F), before the period at the end the following: ‘, except that the Secretary shall not require non-Federal finan- cial support in an amount that is greater than 5 per- cent in the case of a 1994 institution (as defined in sec- tion 532 of the Equity in Educational Land-Grant Sta- tus Act of 1994 (7 U.S.C. 301 note; Public Law 103–382))’ ’’, could not be executed because the phrase ‘‘by inserting’’ did not appear. Corrected amendment was made by Pub. L. 115–334, § 6701(d)(1), effective as if included in Pub. L. 107–171, § 6015. See 2018 Amendment note above and Effective Date of 2018 Amendment note below. Subsec. (e)(9). Pub. L. 107–171, § 6015(2), substituted ‘‘2007’’ for ‘‘2002’’. Subsec. (f)(3). Pub. L. 107–171, § 6016, added par. (3). Subsec. (g). Pub. L. 107–171, § 6017, added subsec. (g) and struck out heading and text of former subsec. (g). Text read as follows: ‘‘(1) DEFINITION OF FARMER.—In this subsection, the term ‘farmer’ means any farmer that the Secretary de- termines is a family farmer. ‘‘(2) LOAN GUARANTEES.—The Secretary may guar- antee loans under this section to individual farmers for the purpose of purchasing start-up capital stock of a farmer cooperative established for the purpose of proc- essing an agricultural commodity. ‘‘(3) ELIGIBILITY.—To be eligible for a loan guarantee under this subsection, a farmer must produce the agri- cultural commodity that will be processed by the coop- erative.’’ Subsec. (h). Pub. L. 107–171, § 6007(b), added subsec. (h). 1996—Subsec. (a). Pub. L. 104–127, § 747(a)(1), in first sentence, struck out ‘‘and’’ before ‘‘(3)’’ and inserted before period at end ‘‘, and (4) to facilitate economic opportunity for industries undergoing adjustment from terminated Federal agricultural price and income sup- port programs or increased competition from foreign trade’’. Pub. L. 104–127, § 635(b), in third sentence, substituted ‘‘(4) of’’ for ‘‘(3) of’’. Subsec. (b). Pub. L. 104–127, § 747(a)(2), inserted head- ing, redesignated par. (2) as subsec. (b), struck out ‘‘(2)’’ before ‘‘The Secretary’’, and struck out par. (1) which read as follows: ‘‘Secretary may make grants, not to exceed $50,000,000 annually, to eligible applicants under this section for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per centum of the development cost of such a project.’’ Subsec. (c). Pub. L. 104–127, § 747(a)(3), inserted head- ing, in par. (1), inserted par. heading and inserted ‘‘(in- cluding nonprofit entities)’’ after ‘‘private business en- terprises’’, in par. (2), inserted par. heading and sub- stituted ‘‘award grants on a competitive basis’’ for ‘‘make grants’’, and added par. (3). Subsec. (d)(2) to (4). Pub. L. 104–127, § 661(d)(1), sub- stituted ‘‘provision of this section’’ for ‘‘provision of this section and sections 1924(b) and 1942(b) of this title’’. Subsec. (d)(6). Pub. L. 104–127, § 661(d)(2), substituted ‘‘this section’’ for ‘‘this section, section 1924 of this title, or section 1942 of this title’’. Subsec. (e). Pub. L. 104–127, § 747(a)(4), added subsec. (e) and struck out former subsec. (e) which authorized the insuring or guaranteeing of loans for the purpose of constructing or improving subterminal facilities. Subsec. (e)(2). Pub. L. 104–180 amended Pub. L. 104–127, § 747(a)(4), which enacted subsec. (e), to insert ‘‘effective October 1, 1996,’’ after ‘‘The Secretary shall make grants’’ in par. (2). Subsec. (f). Pub. L. 104–127, § 759B, added par. (1), re- designated existing provisions as par. (2), and added par. heading. Pub. L. 104–127, § 747(a)(5), (6), redesignated subsec. (j) as (f) and struck out former subsec. (f) which author- ized grants to nonprofit institutions for the purpose of establishing and operating centers for rural technology or cooperative development. See subsec. (e) of this sec- tion. Pub. L. 104–127, § 705(1), made technical amendment to directory language of Pub. L. 101–624, § 2347(a). See 1990 Amendment note below. Subsec. (g). Pub. L. 104–127, § 747(a)(5), (7), added sub- sec. (g) and struck out former subsec. (g) which read as follows: ‘‘In carrying out subsection (f) of this section, the Secretary may provide technical assistance to al- leviate or prevent conditions of excessive unemploy- ment or underemployment of persons residing in eco- nomically distressed rural areas that the Secretary de- termines have a substantial need for such assistance. Such assistance shall include planning and feasibility studies, management and operational assistance, and studies evaluating the needs for development potential of projects that increase employment and improve eco- nomic growth in such areas.’’ Pub. L. 104–127, § 705(1), made technical amendment to directory language of Pub. L. 101–624, § 2347(a). See 1990 Amendment note below. Page 1098 TITLE 7—AGRICULTURE § 1932 Subsec. (h). Pub. L. 104–127, § 747(a)(5), struck out sub- sec. (h) which read as follows: ‘‘The Secretary may make grants to defray not to exceed 75 percent of the administrative costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under subsection (f) of this section. For purposes of determining the non-Federal share of such costs, the Secretary shall consider contributions in cash and in kind, fairly evaluated, including but not limited to premises, equipment, and services.’’ Pub. L. 104–127, § 705(1), made technical amendment to directory language of Pub. L. 101–624, § 2347(a). See 1990 Amendment note below. Subsec. (i). Pub. L. 104–127, § 747(a)(5), struck out sub- sec. (i) which authorized making of loans at low inter- est rates and at market rates to 1 or more businesses, local governments, or public agencies in rural areas to fund facilities in which recipients of such loans share telecommunications terminal equipment, computers, computer software, and computer hardware. Subsec. (j). Pub. L. 104–127, § 747(a)(6), redesignated subsec. (j) as (f). 1992—Subsec. (c). Pub. L. 102–554 designated existing provisions as par. (1) and added par. (2). Pub. L. 102–552, which directed the substitution of ‘‘business enterprises or the creation, expansion, and operation of rural distance learning networks or rural learning programs that provide educational instruction or job training instruction related to potential employ- ment or job advancement to adult students,’’ for ‘‘busi- ness enterprises,’’ in section 310B(c) without specifying the name of the act, was executed to this section, which is section 310B of the Consolidated Farm and Rural Development Act, to reflect the probable intent of Congress. 1991—Subsec. (d)(5), (7). Pub. L. 102–237, § 701(h)(1)(C), (D), substituted ‘‘this chapter’’ for ‘‘this Act’’. Subsec. (f)(4). Pub. L. 102–237, § 701(c)(3), (4), redesig- nated par. (4), relating to grants to statewide private nonprofit public television systems, as subsec. (j), and transferred such provision to follow subsec. (i). Subsec. (i)(2)(B)(iv). Pub. L. 102–237, § 701(c)(1), sub- stituted ‘‘(iii) of this subparagraph’’ for ‘‘(ii) of this subsection’’. Subsec. (i)(5)(A). Pub. L. 102–237, § 701(c)(2), inserted closing parenthesis after ‘‘section 2008(b)(3) of this title’’. Subsec. (j). Pub. L. 102–237, § 701(c)(3)–(5), redesignated subsec. (f)(4), relating to grants to statewide private nonprofit public television systems, as subsec. (j), transferred such provision to follow subsec. (i), and in- serted heading. 1990—Subsec. (a). Pub. L. 101–624, § 2388(b), substituted ‘‘paragraphs (1) and (3)’’ for ‘‘subsections (a) and (c)’’. Subsec. (b). Pub. L. 101–624, § 2325, designated existing provisions as par. (1) and added par. (2). Subsec. (d). Pub. L. 101–624, § 2388(c), designated first par. and pars. (1) to (6) as (1) to (7), respectively, sub- stituted ‘‘paragraphs (2) and (3)’’ for ‘‘paragraph (1) and (2)’’ in par. (4), and realigned margins of pars. (5) to (7). Subsec. (f). Pub. L. 101–624, § 2386, added par. (4) relat- ing to grants to statewide private nonprofit public tele- vision systems. Pub. L. 101–624, § 2347, formerly § 2347(a), as renum- bered by Pub. L. 104–127, § 705(1), added subsec. (f) and struck out former subsec. (f) which read as follows: ‘‘(1) The Secretary may make grants under this sub- section to public and nonprofit private institutions for the purpose of enabling them to establish and operate centers of rural technology development that have, as a primary objective, the improvement of the economic condition of rural areas by promoting the development (through technological innovation and adaptation of existing technology) and commercialization of (A) new products that can be produced in rural areas, and (B) new processes that can be used in such production. ‘‘(2) Grants under this subsection may be made on a competitive basis. In making grants, the Secretary shall give preference to applicants that will establish centers for rural technology in areas that have (A) few industries and agribusinesses, (B) high levels of unem- ployment, (C) high rates of out-migration of people, business, and industries, and (D) low levels of per cap- ita income. ‘‘(3) If grants are to be made under this subsection, the Secretary shall issue regulations implementing this subsection that shall include provisions for the monitoring and evaluation of the rural technology de- velopment activities carried out by institutions that receive grants under this subsection.’’ Subsecs. (g), (h). Pub. L. 101–624, § 2347, formerly § 2347(a), as renumbered by Pub. L. 104–127, § 705(1), added subsecs. (g) and (h). Subsec. (i). Pub. L. 101–624, § 2337, added subsec. (i). 1987—Subsec. (c). Pub. L. 100–203 inserted ‘‘and pri- vate nonprofit corporations’’ after ‘‘to public bodies’’ and substituted ‘‘to finance and facilitate development of small and emerging’’ for ‘‘to facilitate development of’’. 1986—Subsec. (a). Pub. L. 99–409, § 2(1), inserted provi- sion that no loan may be made, insured, or guaranteed under this subsection that exceeds $25,000,000 in prin- cipal amount. Subsec. (f). Pub. L. 99–409, § 2(2), added subsec. (f). 1980—Subsec. (a). Pub. L. 96–438 authorized the Sec- retary to make and insure loans for the purpose of re- ducing the reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems, including the modification of ex- isting systems, in rural areas and defined term ‘‘solar energy’’, for purposes of subsection (a) of this section, as meaning energy derived from sources, other than fossil fuels, and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974, as amended. Subsec. (e). Pub. L. 96–358 added subsec. (e). 1978—Subsec. (d)(1), (2). Pub. L. 95–334, § 112(1), in- serted exception for assistance less than $1,000,000, or where direct employment will not be increased by more than 50 employees. Subsec. (d)(3). Pub. L. 95–334, § 112, inserted exception for assistance less than $1,000,000, or where direct em- ployment will not be increased by more than 50 em- ployees and substituted ‘‘30’’ for ‘‘60’’. 1977—Subsec. (a). Pub. L. 95–113 inserted reference to the conservation, development, and utilization of water for aquaculture purposes and inserted definition of ‘‘aquaculture’’. 1973—Subsec. (d)(4) to (6). Pub. L. 91–524, § 817, as added by Pub. L. 93–86, added pars. (4) to (6). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–334, title VI, § 6701(d)(2), Dec. 20, 2018, 132 Stat. 4778, provided that: ‘‘The amendment made by this subsection [amending this section] shall take ef- fect as if included in the enactment of section 6015 of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171).’’ EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–180, title VII, § 731, Aug. 6, 1996, 110 Stat. 1600, provided in part: ‘‘That this section [amending this section] shall take effect upon enactment of this Act into law [Aug. 6, 1996].’’ EFFECTIVE DATE OF 1991 AMENDMENT Amendment by section 701(c) of Pub. L. 102–237 effec- tive as if included in the provision of the Food, Agri- culture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, and amend- Page 1099 TITLE 7—AGRICULTURE § 1933 1 See References in Text note below. ment by section 701(h)(1)(C), (D) of Pub. L. 102–237 to any provision specified therein effective as if included in Act that added provision so specified at the time such Act became law, see section 1101(b)(6), (c) of Pub. L. 102–237, set out as a note under section 1421 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–409, § 2(2), Aug. 28, 1986, 100 Stat. 923, pro- vided that the amendment made by section 2(2) is effec- tive Oct. 1, 1986. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–358 effective Oct. 1, 1980, see section 6 of Pub. L. 96–358, set out as an Effective Date note under section 3701 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title. TRANSFER OF FUNCTIONS Powers, duties, and assets of agencies, offices, and other entities within Department of Agriculture relat- ing to rural development functions under this section and under section 1323 of Pub. L. 99–198, set out as a note below, transferred to Rural Development Adminis- tration by section 2302(b) of Pub. L. 101–624. REGULATIONS Pub. L. 113–79, title VI, § 6010(c), Feb. 7, 2014, 128 Stat. 843, provided that: ‘‘Not later than 180 days after the date of enactment of this Act [Feb. 7, 2014], the Sec- retary [of Agriculture] shall promulgate such regula- tions as are necessary to implement the amendments made by this section.’’ BUSINESS DEVELOPMENT Pub. L. 101–624, title XXIII, § 2336, Nov. 28, 1990, 104 Stat. 4022, provided that: ‘‘The purposes of this chapter [chapter 2 (§§ 2336, 2337) of subtitle D of title XXIII of Pub. L. 101–624, amending this section] are to— ‘‘(1) provide funds to improve telecommunications service in rural areas; and ‘‘(2) provide access to advanced telecommuni- cations services and computer networks to improve job opportunities and the business environment in rural areas.’’ GUARANTEE BY SECRETARY OF AGRICULTURE OF LOANS TO NONPROFIT NATIONAL RURAL DEVELOPMENT AND FINANCE CORPORATIONS Pub. L. 99–198, title XIII, § 1323, Dec. 23, 1985, 99 Stat. 1534, as amended by Pub. L. 99–425, title IV, § 407(c), Sept. 30, 1986, 100 Stat. 971; Pub. L. 99–500, § 101(a) [title VI, § 641], Oct. 18, 1986, 100 Stat. 1783, 1783–35, and Pub. L. 99–591, § 101(a) [title VI, § 641], Oct. 30, 1986, 100 Stat. 3341, 3341–35; Pub. L. 100–202, § 101(k) [title VI, § 636], Dec. 22, 1987, 101 Stat. 1329–322, 1329–357; Pub. L. 113–79, title VI, § 6017(b), Feb. 7, 2014, 128 Stat. 846, provided that: ‘‘(a)(1) Prior to September 30, 1988, the Secretary of Agriculture (hereafter in this section referred to as the ‘Secretary’) shall guarantee loans made by public agen- cies or private organizations (including loans made by financial institutions such as insurance companies) to nonprofit national rural development and finance cor- porations that establish similar and affiliated state- wide rural development and finance programs for the purpose of providing loans, guarantees, and other finan- cial assistance to profit or nonprofit local businesses to improve business, industry, and employment opportu- nities in a rural area (as determined by the Secretary). ‘‘(2) To be eligible to obtain a loan guarantee under this subsection, a corporation must— ‘‘(A) demonstrate to the Secretary the ability of the corporation to administer a national revolving rural development loan program; ‘‘(B) be prepared to commit financial resources under the control of the corporation to the establish- ment of affiliated statewide rural development and fi- nance programs; and ‘‘(C) have secured commitments of significant fi- nancial support from public agencies and private or- ganizations for such affiliated statewide programs. ‘‘(3) A national rural development and finance cor- poration receiving a loan guarantee under this sub- section shall base a determination to establish an af- filiated statewide program in large part on the willing- ness of States and private organizations to sponsor and make funds available to such program. ‘‘(4) Notwithstanding any other provision of law, for the fiscal year ending September 30, 1986, of the amounts available to guarantee loans in accordance with section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) from the Rural Devel- opment Insurance Fund, $20,000,000 shall be used by the Secretary to guarantee loans under the national rural development and finance program established under this subsection, to remain available until expended. ‘‘(5) Notwithstanding any provision to the contrary of subsection (4) above, the $20,000,000 which was available pursuant to subsection (4) shall continue to be avail- able and shall be used by the Secretary prior to Sep- tember 30, 1988, to guarantee loans for the national rural development and finance program and shall re- main available until expended. ‘‘(b)(1) Prior to September 30, 1988, the Secretary shall make grants, from funds transferred under para- graph (2), to national rural development and finance corporations for the purpose of establishing a rural de- velopment program to provide financial and technical assistance to compliment [sic] the loan guarantees made or to be made to such corporations under sub- section (a). ‘‘(2) All funds in, appropriated to, or repaid to the Rural Development Loan Fund, including those on de- posit and available upon date of enactment [Dec. 23, 1985], under sections 623 and 633 [42 U.S.C. 9812, 9822] of the Community Economic Development Act of 1981 (42 U.S.C. 9801 et seq.) shall be transferred to the Secretary provided that— ‘‘(A) all funds on deposit and available on date of enactment shall be used for the purpose of making grants under paragraph (1) and shall remain available until expended; and ‘‘(B) notwithstanding any other provision of law, all loans to intermediary borrowers made prior to date of enactment, shall upon date of enactment, for the life of such loan, bear a rate of interest not to ex- ceed that in effect upon the date of issuance of such loans.’’ Pub. L. 99–500, § 101(a) [title VI, § 641], Oct. 18, 1986, 100 Stat. 1783, 1783–35, and Pub. L. 99–591, § 101(a) [title VI, § 641], Oct. 30, 1986, 100 Stat. 3341, 3341–35, provided in part: ‘‘That such grant funds [probably means grant funds under section 1323(b)(1) of Pub. L. 99–198, set out above] may be used by such corporation to provide technical assistance and financial assistance, including capitalizing revolving loan programs, pursuant to the Act.’’ LIMITS ON GRANTS FOR FISCAL YEARS 1982, 1983, AND 1984 Pub. L. 97–35, title I, § 120, Aug. 13, 1981, 95 Stat. 367, provided in part that, notwithstanding any other provi- sion of law, there was authorized to be appropriated for grants pursuant to section 310B(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) not to exceed: $5,007,000 for fiscal year 1982, $5,280,000 for fiscal year 1983, and $5,553,000 for fiscal year 1984. § 1933. Guaranteed rural housing loans; Hawai- ian home lands (a) Rural Housing Loans which (1) are guaran- teed by the Secretary under section 517(a)(2) 1 of