USDA Loan Modernization Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The USDA Loan Modernization Act amends the Consolidated Farm and Rural Development Act to broaden eligibility for USDA loans. Specifically, it raises the ownership requirement for loan applicants to at least 50% and clarifies the definition of ‘qualified operator,’ allowing for operating-only entities and embedded entities to qualify if a majority of their ownership is held by qualified operators. The bill also updates provisions for operating and emergency loans to align with these changes.
Key provisions
- Increases the required ownership stake for loan applicants to at least 50%.
- Defines ‘qualified operator’ as recognized by the Secretary.
- Allows operating-only entities to qualify for loans if a majority of ownership is held by qualified operators.
- Permits ‘embedded entities’ to qualify if at least 75% of their ownership is held by qualified operators.
- Updates eligibility requirements for operating loans.
- Updates eligibility requirements for emergency loans.
- Clarifies the definition of ‘owner-operator’ for various loan types.
- Provides flexibility for the Secretary to determine appropriate ownership percentages.
Who is affected
- Farmers
- Rural landowners
- USDA loan applicants
- Agricultural lenders
- Rural communities
Notable changes
Bill text
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Sponsors
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4 on record
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