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 meal 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 8101 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 any 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. 5304 ).
The Secretary shall issue a loan guarantee to an eligible lender 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 meal program authorized under this Act. 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, acting through the Under Secretary for Rural Development, shall establish procedures to oversee any project or purchase 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 for loan guarantees under this subsection that are, to the maximum extent practicable, equal to all costs of the loan guarantees as determined under the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.), as determined by the Secretary.
To the extent that the Secretary determines that fees described in subparagraph
(A)are not sufficient to pay for all of the costs for the loan guarantees pursuant to the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.), the Secretary may use funds described in paragraph
(6)to pay for the costs of loan guarantees not paid for by the fees. 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 2020 and subject to the availability of appropriations, provide grants to State agencies for competitive subgrants to local educational agencies and schools (tribes) to purchase the equipment needed to serve healthy meals, improve food safety, and to help support the establishment, maintenance and expansion of the school. In issuing a grant under this subsection, the State agency shall give a preference to an eligible entity that, as compared with other eligible entities seeking a loan guarantee under this subsection, the State agency determines demonstrates substantial or disproportionate— need for infrastructure improvement; or durable equipment need or impairment. There are authorized to be appropriated $35,000,000 as may be necessary to carry out this subsection for each of fiscal years 2020 through 2025. 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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