[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2951 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2951

   To require the Secretary of Agriculture to establish a program to 
   provide loans and loan guarantees to assist new and expanded meat 
           processors and renderers, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 27 (legislative day, September 22), 2023

 Mr. Moran (for himself and Mr. Bennet) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Agriculture to establish a program to 
   provide loans and loan guarantees to assist new and expanded meat 
           processors and renderers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Butcher Block Act of 2023''.

SEC. 2. ASSISTANCE FOR NEW AND EXPANDED MEAT PROCESSORS AND RENDERERS.

    (a) Definitions.--In this section:
            (1) Covered facility.--The term ``covered facility'' means 
        a facility--
                    (A) for which a loan or loan guarantee is provided 
                to an eligible entity under the program; and
                    (B) that is--
                            (i) a meat processing establishment that 
                        employs fewer than 500 employees; or
                            (ii) a rendering facility establishment 
                        that employs fewer than 200 employees.
            (2) Eligible entity.--
                    (A) In general.--The term ``eligible entity'' 
                means--
                            (i) a public, private, or cooperative 
                        organization organized on a for-profit or 
                        nonprofit basis;
                            (ii) an Indian Tribe (as defined in section 
                        4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 5304)); and
                            (iii) an individual farmer, rancher, or 
                        business owner.
                    (B) Exclusions.--The term ``eligible entity'' does 
                not include--
                            (i) an entity described in subparagraph 
                        (A)(i) that is partly or wholly owned by a 
                        foreign entity; or
                            (ii) an entity that has processed an 
                        average of not less than 5 percent of the beef, 
                        pork, chicken, or turkey processed nationally 
                        during the immediately preceding 5 calendar 
                        years.
            (3) Meat.--The term ``meat'' includes poultry.
            (4) Program.--The term ``program'' means the program 
        established under subsection (b).
            (5) Rural area.--The term ``rural area'' has the meaning 
        given the term in section 343(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Establishment.--The Secretary shall establish a program under 
which the Secretary shall provide loans and loan guarantees to eligible 
entities to use in accordance with subsection (f).
    (c) Program Purposes.--The purposes of the program are--
            (1) to increase capacity of meat processing and rendering;
            (2) to diversify meat processing and rendering ownership;
            (3) to bolster local and regional food security through 
        increased meat processing and rendering capacity; and
            (4) to improve, develop, or finance meat processing and 
        rendering capacity or employment, including through the 
        financing of working capital.
    (d) Maximum Amount.--Except as provided in subsection (g)(1), the 
amount of a loan or loan guarantee provided under the program shall not 
exceed $50,000,000.
    (e) Priority.--In providing a loan or loan guarantee under the 
program, the Secretary shall give priority to eligible entities that--
            (1) are able to increase overall meat processing or 
        rendering capacity in the region involved, as determined by the 
        Secretary; and
            (2) are located in a rural area.
    (f) Use of Loans and Loan Guarantees.--An eligible entity that 
receives a loan or loan guarantee under the program shall use that loan 
or loan guarantee, as applicable, to construct, expand, modify, 
refurbish, or re-equip a covered facility described in clause (i) or 
(ii) of subsection (a)(1)(B).
    (g) Special Rules for Cooperatives.--
            (1) Amount of loan or loan guarantee.--The Secretary may 
        provide a loan or loan guarantee of not more than $100,000,000 
        to an eligible entity described in subsection (a)(2)(A)(i) if 
        the loan involved is used to carry out a project that 
        significantly increases meat processing or rendering in the 
        State or region--
                    (A) in which the applicable covered facility is or 
                will be located; and
                    (B) that has insufficient processing or rendering 
                capacity, as determined by the Secretary.
            (2) Accounts receivable.--In the case of a loan or loan 
        guarantee provided to an eligible entity described in 
        subsection (a)(2)(A)(i), the Secretary may take accounts 
        receivable as security for the obligations entered into in 
        connection with the loan or loan guarantee, and the eligible 
        entity may use accounts receivable as collateral to secure the 
        loan or loan guarantee, if the Secretary determines that such 
        actions would not create or otherwise contribute to an 
        unreasonable risk of default or loss to the Federal Government.
    (h) Conditions Applicable With Respect to Using Loan Involved for 
Refinancing.--An eligible entity receiving a loan or loan guarantee 
under the program may use not more than 25 percent of the involved loan 
to refinance a loan obtained for carrying out an activity described in 
subsection (f) if--
            (1) the eligible entity is current and performing with 
        respect to the loan to be refinanced;
            (2) the eligible entity has not defaulted on any payment 
        required to be made with respect to the loan to be refinanced;
            (3) none of the collateral for the loan to be refinanced 
        has been converted; and
            (4) there is adequate security or full collateral for the 
        loan to be refinanced.
    (i) Conditions Relating to Carcasses.--An eligible entity receiving 
a loan or loan guarantee under the program--
            (1) shall accept all carcasses allowed under Federal law; 
        and
            (2) shall not limit the size or type of producers from 
        which the eligible entity procures carcasses.
    (j) Appraisal.--The Secretary may require that any appraisal made 
in connection with a loan or loan guarantee provided under the program 
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.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $100,000,000 
for each of fiscal years 2024 through 2029.

SEC. 3. NEW, MOBILE, AND EXPANDED MEAT PROCESSING AND RENDERING GRANTS.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a governmental entity;
                    (B) a public, private, or cooperative organization 
                organized on a for-profit or nonprofit basis;
                    (C) an Indian Tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 5304)); and
                    (D) an institution of higher education.
            (2) Meat.--The term ``meat'' includes poultry.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Grants.--The Secretary shall make grants to eligible entities 
to use in accordance with subsection (d).
    (c) Purposes.--The purposes of this section are--
            (1) to create more resilient local and regional food 
        systems;
            (2) to expand, diversify, and increase resilience in meat 
        processing and rendering activities;
            (3) to improve compliance of meat processors with livestock 
        and poultry processing statutes (including regulations), 
        including the Federal Meat Inspection Act (21 U.S.C. 601 et 
        seq.) and the Poultry Products Inspection Act (21 U.S.C. 451 et 
        seq.);
            (4) to reduce barriers to entry for new meat processors and 
        renderers; and
            (5) to update, expand, or otherwise improve existing meat 
        processing and rendering facilities.
    (d) Use of Funds.--An eligible entity receiving a grant under this 
section may use the grant to establish or support new, innovative, or 
expanded meat processing or rendering activities, or other activities 
that will increase the customer base or revenue returns of livestock 
and poultry producers, including by undertaking projects--
            (1) to identify and analyze business opportunities, 
        including feasibility studies required for creditworthiness;
            (2) to identify, train, and provide technical assistance to 
        existing or prospective entrepreneurs and managers or 
        processing or rendering facilities;
            (3) to achieve compliance with applicable Federal, State, 
        or local regulations;
            (4) to conduct regional, community, and local economic 
        development planning and coordination and leadership 
        development;
            (5) to establish a center for training, technology, and 
        trade that will provide training to meat processing and 
        rendering employees; and
            (6) to incentivize new, innovative, or mobile enterprises 
        to increase or improve local and regional meat processing and 
        rendering.
    (e) Conditions Relating to Carcasses.--An eligible entity receiving 
a grant under this section--
            (1) shall accept all carcasses allowed under Federal law; 
        and
            (2) shall not limit the size or type of producers from 
        which the eligible entity procures carcasses.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $25,000,000 for 
each of fiscal years 2024 through 2029.
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