Food supply chain guaranteed loans

Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by inserting after subsection (e) the following: (f) Food supply chain capacity and resilience guaranteed loans (1) Definition of food supply chain guaranteed loan In this subsection, the term food supply chain guaranteed loan means a business and industry guaranteed loan that is made or guaranteed by the Secretary under subsection (a)(2)(A), including a guarantee described in subsection (a)(3). (2) Purpose A food supply chain guaranteed loan may be made for the purpose of financing new investments in the start-up or expansion of projects in the United States that will increase the capacity of the food supply chain in the United States to aggregate, process, manufacture, store, transport, wholesale, or distribute food, agricultural products, or agricultural inputs. (3) Limitations The maximum amount of a food supply chain guaranteed loan shall not exceed $40,000,000. (4) Loan guarantees in nonrural areas The Secretary may guarantee a food supply chain guaranteed loan to an eligible entity for a facility that is not located in a rural area if— (A) the primary purpose of the loan guarantee is for a facility to aggregate, process, manufacture, store, transport, wholesale, or distribute food agricultural products, or agricultural inputs for agricultural producers or processors that are located within 80 miles of the facility; (B) the applicant demonstrates to the Secretary that the primary benefit of the loan guarantee will be to provide employment for residents of a rural area; and (C) the total principal amount of food supply chain guaranteed loans guaranteed for a fiscal year under this paragraph does not exceed 10 percent of the total principal amount of food supply chain guaranteed loans made for the fiscal year under subsection (a)(2)(A). (5) Quarterly reports to Congress Within 30 days after the end of each calendar quarter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that contains— (A) an evaluation of the outcomes achieved through use of the assistance, and the ability of the recipient of the assistance to meet performance goals; (B) an evaluation of the compliance of the recipient with the terms and conditions of the assistance; (C) a determination as to whether the recipient maintains adequate financial capacity to carry out the activities for which the assistance is provided; and (D) any recommendations of the Secretary regarding the implementation of this subsection. (6) Reservation of funds (A) In general For each of fiscal years 2025 through 2029, the Secretary shall reserve not more than 5 percent of the funds made available to carry out subsection (a) to carry out this subsection. (B) Availability of funds Funds reserved under subparagraph (A) for a fiscal year shall be reserved until April 1 of the fiscal year..

Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by inserting after subsection (e) the following: (f) Food supply chain capacity and resilience guaranteed loans (1) Definition of food supply chain guaranteed loan In this subsection, the term food supply chain guaranteed loan means a business and industry guaranteed loan that is made or guaranteed by the Secretary under subsection (a)(2)(A), including a guarantee described in subsection (a)(3). (2) Purpose A food supply chain guaranteed loan may be made for the purpose of financing new investments in the start-up or expansion of projects in the United States that will increase the capacity of the food supply chain in the United States to aggregate, process, manufacture, store, transport, wholesale, or distribute food, agricultural products, or agricultural inputs. (3) Limitations The maximum amount of a food supply chain guaranteed loan shall not exceed $40,000,000. (4) Loan guarantees in nonrural areas The Secretary may guarantee a food supply chain guaranteed loan to an eligible entity for a facility that is not located in a rural area if— (A) the primary purpose of the loan guarantee is for a facility to aggregate, process, manufacture, store, transport, wholesale, or distribute food agricultural products, or agricultural inputs for agricultural producers or processors that are located within 80 miles of the facility; (B) the applicant demonstrates to the Secretary that the primary benefit of the loan guarantee will be to provide employment for residents of a rural area; and (C) the total principal amount of food supply chain guaranteed loans guaranteed for a fiscal year under this paragraph does not exceed 10 percent of the total principal amount of food supply chain guaranteed loans made for the fiscal year under subsection (a)(2)(A). (5) Quarterly reports to Congress Within 30 days after the end of each calendar quarter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that contains— (A) an evaluation of the outcomes achieved through use of the assistance, and the ability of the recipient of the assistance to meet performance goals; (B) a description of any debt recovery made with respect to a loan guaranteed under this subsection, and agency projections for activities for which the assistance is provided; and (C) any recommendations of the Secretary regarding the implementation of this subsection. (6) Reservation of funds (A) In general For each of fiscal years 2025 through 2029, the Secretary shall reserve not more than 5 percent of the funds made available to carry out subsection (a) to carry out this subsection. (B) Availability of funds Funds reserved under subparagraph (A) for a fiscal year shall be reserved until April 1 of the fiscal year..