[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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