Persons eligible for real estate loans

Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended— (1) in the 2nd sentence of paragraph (1), by striking a majority each place it appears and inserting at least a 50 percent; (2) in paragraph (2), by striking subparagraphs (A) and (B) and inserting the following: (A) Eligibility of qualified operators Qualified operators, as defined by the Secretary, shall be considered to meet the operator requirement of paragraph (1). (B) Eligibility of certain operating-only entities An applicant that is or will become only the operator of farm real estate acquired, improved, or supported with funds under this subtitle shall be considered to meet the owner-operator requirements of paragraph (1) if 1 or more of the individuals who is an owner of the farm real estate owns at least 50 percent (or such other percentage as the Secretary determines is appropriate) of the applicant. (C) Eligibility of certain embedded entities An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (B) of this paragraph that is owned, in whole or in part, by 1 or more other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the total ownership interests of the embedded entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm acquired, improved, or supported with funds under this subtitle..