[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2023 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2023
To provide loan forgiveness for certain borrowers of Department of
Agriculture direct farm loans, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
June 10, 2021
Mrs. Gillibrand (for herself, Mr. Merkley, Mr. Sanders, Mr. Booker, and
Mr. Wyden) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide loan forgiveness for certain borrowers of Department of
Agriculture direct farm loans, 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 ``Relief for America's Small Farmers
Act''.
SEC. 2. DIRECT FARM LOAN FORGIVENESS.
(a) Definitions.--In this section:
(1) Eligible borrower.--The term ``eligible borrower''
means a borrower of an eligible loan that is actively engaged
in farming (within the meaning of section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1)) with respect to a
farming operation--
(A) for which the eligible loan was made; and
(B) the average annual adjusted gross income for
the previous 5-year period of which is not more than
$300,000.
(2) Eligible loan.--The term ``eligible loan'' means a loan
made before March 19, 2020, that is--
(A) a direct farm ownership loan under subtitle A
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922 et seq.);
(B) a direct operating loan under subtitle B of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1941 et seq.); or
(C) an emergency loan under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1961 et seq.).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Loan Forgiveness.--
(1) In general.--Not later than 1 year after the date on
which the Secretary receives an application under paragraph
(2), subject to paragraphs (3) and (4), the Secretary shall
cancel the obligation to repay the balance of principal and
interest due as of the date of enactment of this Act on an
eligible loan for the eligible borrower.
(2) Applications.--To be eligible for cancellation under
paragraph (1), not later than 1 year after the date of
enactment of this Act, an eligible borrower shall submit to the
Secretary an application, which shall cover all eligible loans
for which the eligible borrower is seeking cancellation.
(3) Limitations.--The total amount cancelled under
paragraph (1) with respect to a farming operation shall be not
more than $250,000.
(4) Condition.--The cancellation of an obligation under
paragraph (1) shall be subject to the condition that the
applicable eligible borrower shall continue to be actively
engaged in farming (within the meaning of section 1001A of the
Food Security Act of 1985 (7 U.S.C. 1308-1)) for the 2-year
period beginning on the date on which the Secretary cancels the
obligation under that paragraph.
(c) Effect.--An eligible borrower that receives cancellation of an
obligation with respect to an eligible loan under subsection (b)(1)
shall not be determined to be ineligible for any loan under subtitle A,
B, or C of the Consolidated Farm and Rural Development Act (7 U.S.C.
1922 et seq.) because of that cancellation.
(d) Taxability.--For purposes of the Internal Revenue Code of 1986,
any amount which (but for this subsection) would be includible in gross
income of the eligible borrower by reason of forgiveness described in
subsection (b) shall be excluded from gross income.
(e) Emergency Funding.--
(1) In general.--Out of amounts in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary $10,000,000,000 to provide loan
forgiveness under subsection (b), to remain available until
expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to provide
loan forgiveness under subsection (b) the amount transferred
under paragraph (1), without further appropriation.
(3) Emergency designation.--
(A) In general.--The amounts provided by this
subsection are designated as an emergency requirement
pursuant to section 4(g) of the Statutory Pay-As-You-Go
Act of 2010 (2 U.S.C. 933(g)).
(B) Designation in senate.--In the Senate, this
subsection is designated as an emergency requirement
pursuant to section 4112(a) of H. Con. Res. 71 (115th
Congress), the concurrent resolution on the budget for
fiscal year 2018.
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