[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5877 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5877
To 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.
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IN THE HOUSE OF REPRESENTATIVES
October 3, 2023
Mr. Finstad (for himself and Ms. Craig) introduced the following bill;
which was referred to the Committee on Agriculture
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A BILL
To 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.
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 ``USDA Express Loan Act''.
SEC. 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:
``SEC. 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.''.
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