118 HR 5877 IH: USDA Express Loan Act U.S. House of Representatives 2023-10-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I118th CONGRESS1st SessionH. R. 5877IN THE HOUSE OF REPRESENTATIVESOctober 3, 2023Mr. Finstad (for himself and Ms. Craig) introduced the following bill; which was referred to the Committee on AgricultureA BILLTo amend the Consolidated Farm and Rural Development Act to direct the Secretary of Agriculture to create the USDA Express Guaranteed Farm Ownership and Guaranteed Farm Operating Loan programs, enabling faster access to credit for America’s farmers and ranchers.
1.
Short title
This Act may be cited as the USDA Express Loan Act.
2.
USDA express loans
(a)
In general
Subtitle A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following:
310J.
USDA Express Guaranteed Farm Ownership Loan Program
(a)
In general
Within 1 year after the date of the enactment of this section, the Secretary shall establish a program, which shall be known as the USDA Express Guaranteed Farm Ownership Loan Program, under which, within 36 hours after receipt of an application to guarantee a farm ownership loan that meets the requirement of subsection (e) originated by a USDA express lender, the Secretary shall notify the lender as to whether the application is approved or disapproved. (b)
USDA express lender defined
In this section, the term USDA express lender means any regulated lender authorized by the Secretary to participate in the guaranteed farm ownership loan program under this subtitle. (c)
Documents
In originating a loan for consideration under this section, a USDA express lender may use any loan documents that incorporate the loan analyses, procedures, and documentation of the lender, or such other documents as the Secretary may prescribe. (d)
Credit decisions
Before submitting an application pursuant to this section, a USDA express lender shall determine the creditworthiness, and ascertain the repayment ability, of the borrower involved. (e)
Loans eligible for guarantee
The Secretary shall not accept an application under this section with respect to a loan that exceeds $1,000,000 per farm or ranch operation per year. (f)
Maximum guarantee
The percentage of the principal amount of a loan which may be guaranteed pursuant to this section shall not exceed— (1)75 percent, in the case of a loan not exceeding $750,000; or (2)50 percent, in the case of a loan of more than $750,000 and not more than $1,000,000. (g)
Use of loan proceeds
The borrower of a loan guaranteed pursuant to this section shall use the loan proceeds only to produce agricultural commodities consistent with the purposes of the guaranteed loan programs under this title. (h)
Regulations
The Secretary shall issue such regulations as are necessary to implement this section.
. (b)Section 312 of such Act (7 U.S.C. 1942) is amended by adding at the end the following: (f)
USDA express guaranteed farm operating loans
The Secretary shall establish a USDA Express Guaranteed Farm Operating Loan Program on the same basis as the USDA Express Guaranteed Farm Ownership Loans Program under section 310J. .