Source
(Pub. L. 87–128, title III, § 310B, as added Pub. L. 92–419, title I, § 118(a), Aug. 30, 1972, 86 Stat. 663; amended Pub. L. 91–524, title VIII, § 817, as added Pub. L. 93–86, § 1(27)(B), Aug. 10, 1973, 87 Stat. 241; Pub. L. 95–113, title XV, § 1503(b), Sept. 29, 1977, 91 Stat. 1021; Pub. L. 95–334, title I, § 112, Aug. 4, 1978, 92 Stat. 424; Pub. L. 96–358, § 5, Sept. 25, 1980, 94 Stat. 1187; Pub. L. 96–438, § 1(2), Oct. 13, 1980, 94 Stat. 1871; Pub. L. 99–409, § 2, Aug. 28, 1986, 100 Stat. 923; Pub. L. 100–203, title I, § 1504, Dec. 22, 1987, 101 Stat. 1330–28; Pub. L. 101–624, title XXIII, §§ 2325,
2337,
2347, formerly 2347(a), 2386, 2388(b), (c), Nov. 28, 1990, 104 Stat. 4013, 4022, 4034, 4051, 4052; Pub. L. 102–237, title VII, § 701(c), (h)(1)(C), (D), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub. L. 102–552, title V, § 516(d), Oct. 28, 1992, 106 Stat. 4137; Pub. L. 102–554, § 6, Oct. 28, 1992, 106 Stat. 4144; Pub. L. 104–127, title VI, §§ 635(b),
661
(d), title VII, §§ 705(1),
747
(a),
759B, Apr. 4, 1996, 110 Stat. 1093, 1107, 1112, 1125, 1138; Pub. L. 104–180, title VII, § 731, Aug. 6, 1996, 110 Stat. 1600; Pub. L. 107–171, title VI, §§ 6007(b),
6013–6017, May 13, 2002, 116 Stat. 355, 358, 359.)
References in Text
The Federal Nonnuclear Energy Research and Development Act of 1974, as amended, referred to in subsec. (a), is
Pub. L. 93–577, Dec. 31, 1974,
88 Stat. 1878, as amended, which is classified generally to chapter 74 (§ 5901 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section
5901 of Title
42 and Tables.
For definition of “this chapter”, referred to in subsec. (d)(5), (7), see note set out under section
1921 of this title.
Title V of the Housing Act of 1949, referred to in subsec. (d)(7), is title V of act July 15, 1949, ch. 338,
63 Stat. 432, as amended, which is classified generally to subchapter III (§ 1471 et seq.) of chapter
8A of Title
42, The Public Health and Welfare. For complete classification of this Act to the code, see References in Text note set out under section
1441 of Title
42 and Tables.
Codification
In subsec. (d)(7), “chapter
11 of title
31” substituted for “the Budget and Accounting Act of 1921 [
31 U.S.C. 1 et seq.]” on authority of
Pub. L. 97–258, § 4(b), Sept. 13, 1982,
96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
Amendments
2002—Subsec. (a)(3).
Pub. L. 107–171, § 6013, inserted “and other renewable energy systems (including wind energy systems and anaerobic digestors for the purpose of energy generation)” after “solar energy systems”.
Subsec. (c)(1).
Pub. L. 107–171, § 6014, substituted “Grants” for “In general” in heading, designated existing provisions as subpar. (A) and inserted heading, and added subpar. (B).
Subsec. (e)(5)(F).
Pub. L. 107–171, § 6015(1), inserted “, except that the Secretary shall not require non-Federal financial support in an amount that is greater than 5 percent in the case of a 1994 institution (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (
7 U.S.C.
301 note ; Public Law 103–382))” before period at end.
Subsec. (e)(9).
Pub. L. 107–171, § 6015(2), substituted “2007” for “2002”.
Subsec. (f)(3).
Pub. L. 107–171, § 6016, added par. (3).
Subsec. (g).
Pub. L. 107–171, § 6017, added subsec. (g) and struck out heading and text of former subsec. (g). Text read as follows:
“(1) Definition of farmer.—In this subsection, the term ‘farmer’ means any farmer that the Secretary determines is a family farmer.
“(2) Loan guarantees.—The Secretary may guarantee loans under this section to individual farmers for the purpose of purchasing start-up capital stock of a farmer cooperative established for the purpose of processing an agricultural commodity.
“(3) Eligibility.—To be eligible for a loan guarantee under this subsection, a farmer must produce the agricultural commodity that will be processed by the cooperative.”
Subsec. (h).
Pub. L. 107–171, § 6007(b), added subsec. (h).
1996—Subsec. (a).
Pub. L. 104–127, § 747(a)(1), in first sentence, struck out “and” before “(3)” and inserted before period at end “, and (4) to facilitate economic opportunity for industries undergoing adjustment from terminated Federal agricultural price and income support programs or increased competition from foreign trade”.
Pub. L. 104–127, § 635(b), in third sentence, substituted “(4) of” for “(3) of”.
Subsec. (b).
Pub. L. 104–127, § 747(a)(2), inserted heading, redesignated par. (2) as subsec. (b), struck out “(2)” before “The Secretary”, and struck out par. (1) which read as follows: “Secretary may make grants, not to exceed $50,000,000 annually, to eligible applicants under this section for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per centum of the development cost of such a project.”
Subsec. (c).
Pub. L. 104–127, § 747(a)(3), inserted heading, in par. (1), inserted par. heading and inserted “(including nonprofit entities)” after “private business enterprises”, in par. (2), inserted par. heading and substituted “award grants on a competitive basis” for “make grants”, and added par. (3).
Subsec. (d)(2) to (4).
Pub. L. 104–127, § 661(d)(1), substituted “provision of this section” for “provision of this section and sections
1924
(b) and
1942
(b) of this title”.
Subsec. (d)(6).
Pub. L. 104–127, § 661(d)(2), substituted “this section” for “this section, section
1924 of this title, or section
1942 of this title”.
Subsec. (e).
Pub. L. 104–127, § 747(a)(4), added subsec. (e) and struck out former subsec. (e) which authorized the insuring or guaranteeing of loans for the purpose of constructing or improving subterminal facilities.
Subsec. (e)(2).
Pub. L. 104–180 amended
Pub. L. 104–127, § 747(a)(4), which enacted subsec. (e), to insert “effective October 1, 1996,” after “The Secretary shall make grants” in par. (2).
Subsec. (f).
Pub. L. 104–127, § 759B, added par. (1), redesignated existing provisions as par. (2), and added par. heading.
Pub. L. 104–127, § 747(a)(5), (6), redesignated subsec. (j) as (f) and struck out former subsec. (f) which authorized grants to nonprofit institutions for the purpose of establishing and operating centers for rural technology or cooperative development. See subsec. (e) of this section.
Pub. L. 104–127, § 705(1), made technical amendment to directory language of
Pub. L. 101–624, § 2347(a). See 1990 Amendment note below.
Subsec. (g).
Pub. L. 104–127, § 747(a)(5), (7), added subsec. (g) and struck out former subsec. (g) which read as follows: “In carrying out subsection (f) of this section, the Secretary may provide technical assistance to alleviate or prevent conditions of excessive unemployment or underemployment of persons residing in economically distressed rural areas that the Secretary determines have a substantial need for such assistance. Such assistance shall include planning and feasibility studies, management and operational assistance, and studies evaluating the needs for development potential of projects that increase employment and improve economic growth in such areas.”
Pub. L. 104–127, § 705(1), made technical amendment to directory language of
Pub. L. 101–624, § 2347(a). See 1990 Amendment note below.
Subsec. (h).
Pub. L. 104–127, § 747(a)(5), struck out subsec. (h) which read as follows: “The Secretary may make grants to defray not to exceed 75 percent of the administrative costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under subsection (f) of this section. For purposes of determining the non-Federal share of such costs, the Secretary shall consider contributions in cash and in kind, fairly evaluated, including but not limited to premises, equipment, and services.”
Pub. L. 104–127, § 705(1), made technical amendment to directory language of
Pub. L. 101–624, § 2347(a). See 1990 Amendment note below.
Subsec. (i).
Pub. L. 104–127, § 747(a)(5), struck out subsec. (i) which authorized making of loans at low interest rates and at market rates to 1 or more businesses, local governments, or public agencies in rural areas to fund facilities in which recipients of such loans share telecommunications terminal equipment, computers, computer software, and computer hardware.
Subsec. (j).
Pub. L. 104–127, § 747(a)(6), redesignated subsec. (j) as (f).
1992—Subsec. (c).
Pub. L. 102–554 designated existing provisions as par. (1) and added par. (2).
Pub. L. 102–552, which directed the substitution of “business enterprises or the creation, expansion, and operation of rural distance learning networks or rural learning programs that provide educational instruction or job training instruction related to potential employment or job advancement to adult students,” for “business enterprises,” in section
310B
(c) without specifying the name of the act, was executed to this section, which is section 310B of the Consolidated Farm and Rural Development Act, to reflect the probable intent of Congress.
1991—Subsec. (d)(5), (7).
Pub. L. 102–237, § 701(h)(1)(C), (D), substituted “this chapter” for “this Act”.
Subsec. (f)(4).
Pub. L. 102–237, § 701(c)(3), (4), redesignated par. (4), relating to grants to statewide private nonprofit public television systems, as subsec. (j), and transferred such provision to follow subsec. (i).
Subsec. (i)(2)(B)(iv).
Pub. L. 102–237, § 701(c)(1), substituted “(iii) of this subparagraph” for “(ii) of this subsection”.
Subsec. (i)(5)(A).
Pub. L. 102–237, § 701(c)(2), inserted closing parenthesis after “section
2008
(b)(3) of this title”.
Subsec. (j).
Pub. L. 102–237, § 701(c)(3)–(5), redesignated subsec. (f)(4), relating to grants to statewide private nonprofit public television systems, as subsec. (j), transferred such provision to follow subsec. (i), and inserted heading.
1990—Subsec. (a).
Pub. L. 101–624, § 2388(b), substituted “paragraphs (1) and (3)” for “subsections (a) and (c)”.
Subsec. (b).
Pub. L. 101–624, § 2325, designated existing provisions as par. (1) and added par. (2).
Subsec. (d).
Pub. L. 101–624, § 2388(c), designated first par. and and pars. (1) to (6) as (1) to (7), respectively, substituted “paragraphs (2) and (3)” for “paragraph (1) and (2)” in par. (4), and realigned margins of pars. (5) to (7).
Subsec. (f).
Pub. L. 101–624, § 2386, added par. (4) relating to grants to statewide private nonprofit public television systems.
Pub. L. 101–624, § 2347, formerly § 2347(a), as renumbered by
Pub. L. 104–127, § 705(1), added subsec. (f) and struck out former subsec. (f) which read as follows:
“(1) The Secretary may make grants under this subsection to public and nonprofit private institutions for the purpose of enabling them to establish and operate centers of rural technology development that have, as a primary objective, the improvement of the economic condition of rural areas by promoting the development (through technological innovation and adaptation of existing technology) and commercialization of (A) new products that can be produced in rural areas, and (B) new processes that can be used in such production.
“(2) Grants under this subsection may be made on a competitive basis. In making grants, the Secretary shall give preference to applicants that will establish centers for rural technology in areas that have (A) few industries and agribusinesses, (B) high levels of unemployment, (C) high rates of out-migration of people, business, and industries, and (D) low levels of per capita income.
“(3) If grants are to be made under this subsection, the Secretary shall issue regulations implementing this subsection that shall include provisions for the monitoring and evaluation of the rural technology development activities carried out by institutions that receive grants under this subsection.”
Subsecs. (g), (h).
Pub. L. 101–624, § 2347, formerly § 2347(a), as renumbered by
Pub. L. 104–127, § 705(1), added subsecs. (g) and (h).
Subsec. (i).
Pub. L. 101–624, § 2337, added subsec. (i).
1987—Subsec. (c).
Pub. L. 100–203 inserted “and private nonprofit corporations” after “to public bodies” and substituted “to finance and facilitate development of small and emerging” for “to facilitate development of”.
1986—Subsec. (a).
Pub. L. 99–409, § 2(1), inserted provision that no loan may be made, insured, or guaranteed under this subsection that exceeds $25,000,000 in principal amount.
Subsec. (f).
Pub. L. 99–409, § 2(2), added subsec. (f).
1980—Subsec. (a).
Pub. L. 96–438 authorized the Secretary to make and insure loans for the purpose of reducing the reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems, including the modification of existing systems, in rural areas and defined term “solar energy”, for purposes of subsection (a) of this section, as meaning energy derived from sources, other than fossil fuels, and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974, as amended.
Subsec. (e).
Pub. L. 96–358 added subsec. (e).
1978—Subsec. (d)(1), (2).
Pub. L. 95–334, § 112(1), inserted exception for assistance less than $1,000,000, or where direct employment will not be increased by more than 50 employees.
Subsec. (d)(3).
Pub. L. 95–334, § 112, inserted exception for assistance less than $1,000,000, or where direct employment will not be increased by more than 50 employees and substituted “30” for “60”.
1977—Subsec. (a).
Pub. L. 95–113 inserted reference to the conservation, development, and utilization of water for aquaculture purposes and inserted definition of “aquaculture”.
1973—Subsec. (d)(4) to (6).
Pub. L. 91–524, § 817, as added by
Pub. L. 93–86, added pars. (4) to (6).
Effective Date of 1996 Amendment
Section 731 of
Pub. L. 104–180 provided in part: “That this section [amending this section] shall take effect upon enactment of this Act into law [Aug. 6, 1996].”
Effective Date of 1991 Amendment
Amendment by section 701(c) of
Pub. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990,
Pub. L. 101–624, to which the amendment relates, and amendment by section 701(h)(1)(C), (D) of
Pub. L. 102–237 to any provision specified therein effective as if included in Act that added provision so specified at the time such Act became law, see section 1101(b)(6), (c) of
Pub. L. 102–237, set out as a note under section
1421 of this title.
Effective Date of 1986 Amendment
Section 2(2) of
Pub. L. 99–409 provided that the amendment made by that section is effective Oct. 1, 1986.
Effective Date of 1980 Amendment
Amendment by
Pub. L. 96–358 effective Oct. 1, 1980, see section 6 of
Pub. L. 96–358, set out as an Effective Date note under section
3701 of this title.
Effective Date of 1977 Amendment
Amendment by
Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of
Pub. L. 95–113, set out as a note under section
1307 of this title.
Transfer of Functions
Powers, duties, and assets of agencies, offices, and other entities within Department of Agriculture relating to rural development functions under this section and under section 1323 of
Pub. L. 99–198, set out as a note below, transferred to Rural Development Administration by section 2302(b) of
Pub. L. 101–624.
Business Development
Section 2336 of
Pub. L. 101–624 provided that: “The purposes of this chapter [chapter 2 (§§ 2336,
2337) of subtitle D of title XXIII of
Pub. L. 101–624, amending this section] are to—
“(1) provide funds to improve telecommunications service in rural areas; and
“(2) provide access to advanced telecommunications services and computer networks to improve job opportunities and the business environment in rural areas.”
Guarantee by Secretary of Agriculture of Loans to Nonprofit National Rural Development and Finance Corporations
Pub. L. 99–198, title XIII, § 1323, Dec. 23, 1985,
99 Stat. 1534, as amended by
Pub. L. 99–425, title IV, § 407(c), Sept. 30, 1986,
100 Stat. 971;
Pub. L. 99–500, § 101(a) [title VI, § 641], Oct. 18, 1986,
100 Stat. 1783, 1783–35, and
Pub. L. 99–591, § 101(a) [title VI, § 641], Oct. 30, 1986,
100 Stat. 3341, 3341–35;
Pub. L. 100–202, § 101(k) [title VI, § 636], Dec. 22, 1987,
101 Stat. 1329–322, 1329–357, provided that:
“(a)(1) Prior to September 30, 1988, the Secretary of Agriculture (hereafter in this section referred to as the ‘Secretary’) shall guarantee loans made by public agencies or private organizations (including loans made by financial institutions such as insurance companies) to nonprofit national rural development and finance corporations that establish similar and affiliated statewide rural development and finance programs for the purpose of providing loans, guarantees, and other financial assistance to profit or nonprofit local businesses to improve business, industry, and employment opportunities in a rural area (as determined by the Secretary).
“(2) To be eligible to obtain a loan guarantee under this subsection, a corporation must—
“(A) demonstrate to the Secretary the ability of the corporation to administer a national revolving rural development loan program;
“(B) be prepared to commit financial resources under the control of the corporation to the establishment of affiliated statewide rural development and finance programs; and
“(C) have secured commitments of significant financial support from public agencies and private organizations for such affiliated statewide programs.
“(3) A national rural development and finance corporation receiving a loan guarantee under this subsection shall base a determination to establish an affiliated statewide program in large part on the willingness of States and private organizations to sponsor and make funds available to such program.
“(4) Notwithstanding any other provision of law, for the fiscal year ending September 30, 1986, of the amounts available to guarantee loans in accordance with section 310B of the Consolidated Farm and Rural Development Act (
7 U.S.C.
1932) from the Rural Development Insurance Fund, $20,000,000 shall be used by the Secretary to guarantee loans under the national rural development and finance program established under this subsection, to remain available until expended.
“(5) Notwithstanding any provision to the contrary of subsection (4) above, the $20,000,000 which was available pursuant to subsection (4) shall continue to be available and shall be used by the Secretary prior to September 30, 1988, to guarantee loans for the national rural development and finance program and shall remain available until expended.
“(b)(1) Prior to September 30, 1988, the Secretary shall make grants, from funds transferred under paragraph (2), to national rural development and finance corporations for the purpose of establishing a rural development program to provide financial and technical assistance to compliment [sic] the loan guarantees made or to be made to such corporations under subsection (a).
“(2) All funds in, appropriated to, or repaid to the Rural Development Loan Fund, including those on deposit and available upon date of enactment [Dec. 23, 1985], under sections
623 and
633 [
42 U.S.C.
9812,
9822] of the Community Economic Development Act of 1981 (
42 U.S.C.
9801 et seq.) shall be transferred to the Secretary provided that—
“(A) all funds on deposit and available on date of enactment shall be used for the purpose of making grants under paragraph (1) and shall remain available until expended;
“(B) notwithstanding any other provision of law, all loans to intermediary borrowers made prior to date of enactment, shall upon date of enactment, for the life of such loan, bear a rate of interest not to exceed that in effect upon the date of issuance of such loans; and
“(C) notwithstanding paragraph (1), all funds other than funds to which subparagraph (A) applies shall be used by the Secretary to make loans—
“(i) to the entities;
“(ii) for the purposes; and
“(iii) subject to the terms and conditions;
specified in the first, second, and last sentences of section 623(a) of the Community Economic Development Act of 1981 (42 U.S.C. 9812
(a)). For purposes of this subparagraph, any reference in such sentences to the Secretary shall be deemed to be a reference to the Secretary of Agriculture.”
Pub. L. 99–500, § 101(a) [title VI, § 641], Oct. 18, 1986,
100 Stat. 1783, 1783–35, and
Pub. L. 99–591, § 101(a) [title VI, § 641], Oct. 30, 1986,
100 Stat. 3341, 3341–35, provided in part: “That such grant funds [probably means grant funds under section 1323(b)(1) of
Pub. L. 99–198, set out above] may be used by such corporation to provide technical assistance and financial assistance, including capitalizing revolving loan programs, pursuant to the Act.”
Limits on Grants for Fiscal Years 1982, 1983, and 1984
Pub. L. 97–35, title I, § 120, Aug. 13, 1981,
95 Stat. 367, provided in part that, notwithstanding any other provision of law, there was authorized to be appropriated for grants pursuant to section 310B(c) of the Consolidated Farm and Rural Development Act (
7 U.S.C.
1932) not to exceed: $5,007,000 for fiscal year 1982, $5,280,000 for fiscal year 1983, and $5,553,000 for fiscal year 1984.