Sec. 211. Young beginning farmer or rancher microloans
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Section 311 of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1941 ) is amended by adding at the end the following: Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans. The Secretary shall not make or guarantee a microloan under this subsection that— exceeds $35,000; or would cause the total principal indebtedness outstanding at any time for microloans under this subsection to any one borrower to exceed $70,000. To the maximum extent practicable, the Secretary shall limit the administrative burdens and streamline the application and approval process for microloans under this subsection.
Subject to subparagraph (B), the Secretary may enter into a contract with one or more community-based and nongovernmental organizations, State entities, or other intermediaries, as the Secretary determines appropriate— to make or guarantee a microloan under this subsection; and to provide business, financial, marketing, and credit management services to borrowers. Before entering into a contract with an entity described in subparagraph (A), the Secretary— shall review and approve— the loan loss reserve fund for microloans established by the entity; and the underwriting standards for microloans of the entity; and establish such other requirements for contracting with the entity as the Secretary determines to be necessary.
Under such conditions as the Secretary may require, an entity described in subparagraph
(A)that enters into a contract with the Secretary under this paragraph may elect to convert the loan loss reserve fund for microloans established by the entity into a revolving loan fund to carry out the purposes of this paragraph. . Section 311(c) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1941(c) ) is amended by striking paragraph
(2)and inserting the following: In this subsection, the term direct operating loan shall not include— a loan made to a youth under subsection (b); or a microloan made to a young beginning farmer or rancher or a military veteran farmer or rancher, as defined by the Secretary. . Section 312(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1942(a) ) is amended in the matter preceding paragraph
(1)by inserting (including a microloan, as defined by the Secretary) after A direct loan . Section 316(a)(2) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1946(a)(2) ) is amended in the matter preceding subparagraph
(A)by inserting a microloan to a beginning farmer or rancher or military veteran farmer or rancher or after The interest rate on .
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