Sec. 6504. EXTENSION OF THE RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM

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## SEC. 6504 EXTENSION OF THE RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM ###

(a)Section 12(b)(3)(D) of the Rural Electrification Act of 1936 (7 U.S.C. 912(b)(3)(D)) is amended by striking “313(b)(2)(A)” and inserting “313(b)(2)”. ###

(b)Section 313(b)(2) of such Act (7 U.S.C. 940c(b)(2)) is amended— ####

(1)by striking all that precedes “ shall maintain ” and inserting the following: > > #### “(2) Rural economic development subaccount > > The Secretary” > ; and ####

(2)by striking “the 5 percent” and all that follows through subparagraph

(E)and inserting “5 percent.”. ###

(c)Title III of such Act (7 U.S.C. 931-940h) is amended by inserting after section 313A the following: > > ## “SEC. SEC. 313B RURAL DEVELOPMENT LOANS AND GRANTS > > **[**[7 U.S.C. 940c-2](/us/usc/t7/s940c-2)**]** > > > ### “(a) In General > > The Secretary shall provide grants or zero interest loans to borrowers under this Act for the purpose of promoting rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development. > > > ### “(b) Repayments > > In the case of zero interest loans, the Secretary shall establish such reasonable repayment terms as will encourage borrower participation. > > > ### “(c) Proceeds > > All proceeds from the repayment of such loans made under this section shall be returned to the subaccount that the Secretary shall maintain in accordance with sections 313(b)(2) and 313B(f). > > > ### “(d) Number of Grants > > Loans and grants required under this section shall be made to the full extent of the amounts made available under subsection (e). > > > ### “(e) Funding > > > #### “(1) Discretionary funding > > In addition to other funds that are available to carry out this section, there is authorized to be appropriated not more than $10,000,000 for each of fiscal years 2019 through 2023 to carry out this section, to remain available until expended. > > > #### “(2) Mandatory funding > > Of the funds of the Commodity Credit Corporation, the Secretary shall credit to the subaccount to use for the cost of grants and loans under this section $5,000,000 for each of fiscal years 2022 and 2023, to remain available until expended. > > > #### “(3) Other funds > > In addition to the funds described in paragraphs

(1)and (2), the Secretary shall use, without fiscal year limitation, to provide grants and loans under this section— > > > ##### “(A) > > the interest differential sums credited to the subaccount described in subsection (c); and > > > ##### “(B) > > subject to section 313A(e)(2), the fees described in subsection (c)(4) of such section. > > > ### “(f) Maintenance of Account > > The Secretary shall maintain the subaccount described in section 313(b)(2), as in effect in fiscal year 2017, for purposes of carrying out this section.” > . ###

(d)Section 313A of the Rural Electrification Act of 1936 (7 U.S.C. 940c-1) is amended— ####

(1)in subsection (c)(4)— #####

(A)in subparagraph (A), by striking “maintained under section 313(b)(2)(A)” and inserting “that shall be maintained as required by sections 313(b)(2) and 313B(f)”; and #####

(B)in subparagraph (B), by striking “313(b)(2)(B)” and inserting “313(b)(2)”; and ####

(2)in subsection (e)(2), by striking “maintained under section 313(b)(2)(A)” and inserting “required to be maintained by sections 313(b)(2) and 313B(f)”. ###

(e)####

(1)**[**[7 U.S.C. 940c-2 note](/us/usc/t7/s940c-2)**]** Subject to section 313B(e) of the Rural Electrification Act of 1936 (as added by this section), the Secretary of Agriculture shall carry out the loan and grant program required under such section in the same manner as the loan and grant program under section 313(b)(2) of such Act is carried out on the day before the date of the enactment of this Act, until such time as any regulations necessary to carry out the amendments made by this section are fully implemented. ####

(2)Paragraph

(1)shall take effect on the date of the enactment of this Act.

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