Sec. 2. Loan guarantees and grants to finance certain improvements to school lunch facilities
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The Richard B. Russell National School Lunch Act is amended by inserting after section 26 (42 U.S.C. 1769g) the following: In this section: The term durable equipment means durable food preparation, handling, cooking, serving, and storage equipment greater than $500 in value. The term eligible entity means— a local educational agency or a school food authority administering or operating a school lunch program; a tribal organization; or a consortium that includes a local educational agency or school food authority described in subparagraph (A), a tribal organization, or both.
The term infrastructure means a food storage facility, kitchen, food service facility, cafeteria, dining room, or food preparation facility. The term local educational agency has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). The term school food authority has the meaning given the term in section 210.2 of title 7, Code of Federal Regulations (or a successor regulation). The term tribal organization has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b ).
The Secretary shall issue a loan guarantee to an eligible entity for purposes of financing the construction, remodeling, or expansion of infrastructure or the purchase of durable equipment that the Secretary determines will assist the eligible entity in providing healthy meals through a school lunch program. Subject to paragraph (3), the Secretary shall select eligible entities to receive a loan guarantee under this subsection on a competitive basis. In issuing a loan guarantee under this subsection, the Secretary shall give a preference to an eligible entity that, as compared with other eligible entities seeking a loan guarantee under this subsection, the Secretary determines demonstrates substantial or disproportionate— need for infrastructure improvement; or durable equipment need or impairment.
The Secretary shall establish procedures to enable the Secretary to oversee the construction, remodeling, or expansion of infrastructure or the purchase of durable equipment for which a loan guarantee is issued under this subsection. A loan guarantee issued under this subsection may not guarantee more than 80 percent of the principal amount of the loan. The Secretary shall establish fees with respect to loan guarantees under this subsection that, as determined by the Secretary— are sufficient to cover all the administrative costs to the Federal Government for the operation of the program; may be in the form of an application or transaction fee, or interest rate adjustment; and may be based on the risk premium associated with the loan or loan guarantee, taking into consideration— the price of Treasury obligations of a similar maturity; prevailing market conditions; the ability of the eligible infrastructure project to support the loan guarantee; and the total amount of the loan guarantee.
To provide loan guarantees under this subsection, the Secretary shall reserve $300,000,000 of the loan guarantee authority remaining and unobligated as of the date of enactment of the School Food Modernization Act under the program of community facility guaranteed loans under section 306(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a) ). The Secretary may use not more than 5 percent of the amount made available to carry out this subsection for each fiscal year to provide technical assistance to applicants and prospective applicants in preparing applications and creating financing packages that leverage a mix of public and private funding sources.
Beginning in fiscal year 2015 and subject to the availability of appropriations, the Secretary shall make grants, on a competitive basis, to eligible entities to assist the eligible entities in purchasing the durable equipment and infrastructure needed to serve healthier meals and improve food safety. In awarding grants under this subsection, the Secretary shall give priority to— eligible entities in States that have enacted comparable statutory grant funding mechanisms or that have otherwise appropriated funds to assist eligible entities in purchasing the durable equipment and infrastructure needed to serve healthier meals and improve food safety, as determined by the Secretary; and eligible entities that have identified and are reasonably expected to meet an unmet local or community need, including through— a public-private partnership or partnership with a food pantry or other low-income assistance agency; or the provision for or allowance of kitchen or cafeteria usage by related or outside community organizations.
The Federal share of costs for assistance funded through a grant awarded under this subsection shall not exceed 80 percent of the total cost of the durable equipment or infrastructure. As a condition on receiving a grant under this subsection, an eligible entity shall provide matching support in the form of cash or in-kind contributions. The Secretary may waive or vary the requirements of subparagraphs
(A)and
(B)if the Secretary determines that undue hardship or effective exclusion from participation in the grant program under this subsection would otherwise result. There are authorized to be appropriated such sums as may be necessary to carry out this subsection for fiscal year 2015 and each subsequent fiscal year. The Secretary may use not more than 5 percent of the amount made available to carry out this subsection for each fiscal year to provide technical assistance to applicants and prospective applicants in preparing applications and creating financing packages that leverage a mix of public and private funding sources. .
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Sec. 2
Loan guarantees and grants to finance certain improvements to school lunch facilities
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