Sec. 402. Access to credit for socially disadvantaged farmers and ranchers
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In this subsection— the term Bank means the National Socially Disadvantaged Farmer and Rancher Bank established under paragraph (2); the term community development financial institution has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ); and the term eligible entity means— a credit union, mutual savings bank, or mutual savings and loan association— that— is operated on a cooperative, not-for-profit basis; and provides financial services or facilities for the benefit of— the members of the entity; or voting stockholders who are the ultimate recipients of those financial services or facilities; and not less than 60 percent of the members or voting stockholders of which are socially disadvantaged farmers or ranchers; or a not-for-profit community development financial institution, if not less than 75 percent of the total dollar value of the loans made by the institution consist of loans made to socially disadvantaged farmers or ranchers.
Congress hereby creates and charters a bank to be known as the National Socially Disadvantaged Farmer and Rancher Bank, the sole mission of which shall be to provide financing and other assistance in accordance with the requirements of this subsection. The Bank shall be governed by a Board of Directors— which shall consist of 13 members; and each member of which shall be appointed by the President, by and with the advice and consent of the Senate. Each member of the Board of Directors of the Bank shall serve for a term of 3 years.
The Bank may make loans and loan guarantees to eligible entities. With respect to a loan made by the Bank to an eligible entity— the term of the loan shall be 30 years; the interest rate with respect to the loan shall be the interest rate on 30-year Treasury bonds, as of the date on which the loan is made; and before the end of the term described in clause (i), the eligible entity— shall not be required to make any principal payments with respect to the loan; and shall make interest payments with respect to the loan.
With respect to a loan or loan guarantee made under this paragraph to an eligible entity described in paragraph (1)(C)(ii), the Bank, as a condition of the financing, shall require the eligible entity to ensure that, for the full term of the loan or loan guarantee made by the Bank, not less than 75 percent of the total dollar value of the loans made by the eligible entity consist of loans made to socially disadvantaged farmers or ranchers. The Bank shall establish a program through which the Bank may make a grant to assist— an entity in becoming an eligible entity; or an eligible entity with the commencement or expansion of operations of the eligible entity, including with respect to outreach, education, and training activities.
The amount of a grant made under the program established under subparagraph
(A)shall be not more than $3,000,000. The first grant made by the Bank under the program established under subparagraph
(A)shall be to an entity, not less than 60 percent of the members or stockholders of which are Black farmers or ranchers. The Bank shall establish a program to provide technical assistance to eligible entities, including assistance in obtaining— approval from the National Credit Union Administration Board under section 104 of the Federal Credit Union Act ( 12 U.S.C. 1754 ); and certification from the Community Development Financial Institutions Fund established under section 104(a) of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4701 et seq.). There are appropriated to the Bank, out of any amounts in the Treasury not otherwise appropriated, $1,000,000,000 to carry out this subsection— which shall remain available until expended; and of which— not less than $50,000,000 shall be used to make grants under the program established under paragraph (4); and not less than $50,000,000 shall be used to provide technical assistance under paragraph (5). The amounts provided under this paragraph are designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( 2 U.S.C. 933(g) ). In the Senate, this subsection is designated as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 71 (115th Congress), the concurrent resolution on the budget for fiscal year 2018. Section 5.31 of the Farm Credit Act of 1971 ( 12 U.S.C. 2267 ) is amended— in the first sentence, by striking The Farm and inserting the following: Except as provided in subsection (b), the Farm ; and by adding at the end the following: The Bureau of Consumer Financial Protection shall have enforcement authority over institutions and institution-affiliated parties with respect to claims of discrimination. . The Secretary shall establish goals for the funding of programs to address racial disparities in the recipients of assistance provided by the Department of Agriculture, including the programs under section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 2279 ), to ensure that those programs directly support socially disadvantaged farmers and ranchers. The Secretary shall— conduct public awareness campaigns for socially disadvantaged farmers and ranchers relating to programs available for socially disadvantaged farmers and ranchers through the Department of Agriculture; and use 50 percent of the amount made available under paragraph
(2)to provide funding for community organizations with history of working with socially disadvantaged farmers and ranchers to conduct community-based outreach. There is authorized to be appropriated to carry out this subsection $50,000,000.
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Sec. 402
Access to credit for socially disadvantaged farmers and ranchers
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