Title 7 — Agriculture
Chapter 50 — Agricultural Credit
§ 1936b. Intermediary relending program
Statutory text
In general
The Secretary may make or guarantee loans to eligible entities described in subsection (b) so that the eligible entities may relend the funds to individuals and entities for the purposes described in subsection (c).
Eligible entities
Entities eligible for loans and loan guarantees described in subsection (a) are—
public agencies;
Indian tribes;
cooperatives; and
nonprofit corporations.
Eligible purposes
The proceeds from loans made or guaranteed by the Secretary pursuant to subsection (a) may be relent by eligible entities for projects that—
predominately serve communities in rural areas; and
as determined by the Secretary—
promote community development;
establish new businesses;
establish and support microlending programs; and
create or retain employment opportunities.
Limitation
The Secretary shall not make loans under section 9812(a) of title 42.
Limitation on loan amounts
The maximum amount of a loan by an eligible entity described in subsection (b) to individuals and entities for a project under subsection (c), including the unpaid balance of any existing loans, shall be the lesser of—
$400,000; and
50 percent of the loan to the eligible entity under subsection (a).
Applications
In general
To be eligible to receive a loan or loan guarantee under subsection (a), an eligible entity described in subsection (b) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
Evaluation
In evaluating applications submitted under paragraph (1), the Secretary shall—
take into consideration the previous performance of an eligible entity in carrying out projects under subsection (c); and
in the case of satisfactory performance under clause (i), require the eligible entity to contribute less equity for subsequent loans without modifying the priority given to subsequent applications; and
in assigning priorities to applications, require an eligible entity to demonstrate that it has a governing or advisory board made up of business, civic, and community leaders who are representative of the communities of the service area, without limitation to the size of the service area.
Return of equity
The Secretary shall establish a schedule that is consistent with the amortization schedules of the portfolio of loans made or guaranteed under subsection (a) for the return of any equity contribution made under this section by an eligible entity described in subsection (b), if the eligible entity is—
current on all principal and interest payments; and
in compliance with loan covenants.
Regulations
The Secretary shall promulgate regulations and establish procedures reducing the administrative requirements on eligible entities described in subsection (b), including regulations to carry out the amendments made to this section by the Agriculture Improvement Act of 2018.
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2014 through 2023.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Agricultural Act of 1961
Pub. L. 87–128 title III § 310H · 75 Stat. 294
Enacted · 7 U.S.C. § 1936b
Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), Feb. 7, 2014, 128 Stat. 845
Source evidence
Code source credit
Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), Feb. 7, 2014, 128 Stat. 845Agriculture Improvement Act of 2018
Pub. L. 115–334 § 6416(2) · 132 Stat. 4490
Redesignated · 7 U.S.C. § 1936b(e)(h)
Pub. L. 115–334, § 6416(2), added subsecs. (e) to (h). Former subsec. (e) redesignated (i)
Source evidence
Code amendment note
Subsecs. (e) to (h). Pub. L. 115–334, § 6416(2), added subsecs. (e) to (h). Former subsec. (e) redesignated (i).Enacted provision · exact public law section
(2) by inserting after subsection (d) the following: “(e) Limitation on Loan Amounts.— The maximum amount of a loan by an eligible entity described in subsection (b) to individuals and entities for a project under subsection (c), including the unpaid balance of any existing loans, shall be the lesser of— “(1) $400,000; and “(2) 50 percent of the loan to the eligible entity under subsection (a). “(f) Applications.— “(1) In general.— To be eligible to receive a loan or loan guarantee under subsection (a), an eligible entity described in subsection (b) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. “(2) Evaluation.— In evaluating applications submitted under paragraph (1), the Secretary shall— “(A) (i) take into consideration the previous performance of an eligible entity in carrying out projects under subsection (c); and “(ii) in the case of satisfactory performance under clause (i), require the eligible entity to contribute less equity for subsequent loans without modifying the priority given to subsequent applications; and “(B) in assigning priorities to applications, require an eligible entity to demonstrate that it has a governing or advisory board made up of business, civic, and community leaders who are representative of the communities of the service area, without limitation to the size of the service area. “(g) Return of Equity.— The Secretary shall establish a schedule that is consistent with the amortization schedules of the portfolio of loans made or guaranteed under subsection (a) for the return of any equity contribution made under this section by an eligible entity described in subsection (b), if the eligible entity is— “(1) current on all principal and interest payments; and “(2) in compliance with loan covenants. “(h) Regulations.— The Secretary shall promulgate regulations and establish procedures reducing the administrative requirements on eligible entities described in subsection (b), including regulations to carry out the amendments made to this section by the Agriculture Improvement Act of 2018.” ; andAgriculture Improvement Act of 2018
Pub. L. 115–334 § 6416(1) · 132 Stat. 4490
Redesignated · 7 U.S.C. § 1936b(i)
Pub. L. 115–334, § 6416(1), (3), redesignated subsec. (e) as (i)
Substituted · 7 U.S.C. § 1936b(i)
Pub. L. 115–334, § 6416(1), (3), substituted “2023” for “2018”
Source evidence
Code amendment note
Subsec. (i). Pub. L. 115–334, § 6416(1), (3), redesignated subsec. (e) as (i) and substituted “2023” for “2018”.Enacted provision · exact public law section
(1) by redesignating subsection (e) as subsection (i);
3 of 4 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
The amendments made to this section by the Agriculture Improvement Act of 2018, referred to in subsec. (h), means the amendments made to this section by Pub. L. 115–334.
Amendments
2018—Subsecs. (e) to (h). Pub. L. 115–334, § 6416(2), added subsecs. (e) to (h). Former subsec. (e) redesignated (i).
Subsec. (i). Pub. L. 115–334, § 6416(1), (3), redesignated subsec. (e) as (i) and substituted “2023” for “2018”.
Credits
2014–2018 · 2 acts
- 2014Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), , 128 Stat. 845
- 2018amended Pub. L. 115–334, title VI, § 6416, , 132 Stat. 4762.
Show as published
(Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), , 128 Stat. 845; amended Pub. L. 115–334, title VI, § 6416, , 132 Stat. 4762.)