Grants and loans for food distribution in frontier communities

Subtitle A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following: 310J. Grants and loans for food distribution in frontier communities (a) Definitions In this section: (1) Eligible community The term eligible community means— (A) a frontier community that— (i) is located in a noncontiguous State; (ii) does not have a food bank or food pantry as of the date of submission of an application for a grant or loan under this section; and (iii) is determined to be Frontier Level 4 in accordance with the most recent version of the Frontier and Remote Communities Code developed by the Economic Research Service; and (B) a rural community that— (i) is located in a noncontiguous State; (ii) does not have a food bank or food pantry as of the date of submission of an application for a grant or loan under this section; and (iii) is determined to be Frontier Level 3 in accordance with the most recent version of the Frontier and Remote Communities Code developed by the Economic Research Service. (2) Eligible entity The term eligible entity means— (A) an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); (B) a Tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); and (C) an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code. (b) Establishment The Secretary shall establish a program to provide grants and loans to eligible entities to establish food banks or food pantries in eligible communities. (c) Eligible activities An eligible entity that receives a grant or loan under subsection (b) may use the grant or loan for— (1) the construction or renovation of facilities; (2) wages and benefits for employees; (3) equipment to keep food and beverages cold or frozen, as appropriate; (4) transportation of foods and beverages from rural hub communities to outlying villages, including by air, barge, or surface transportation; and (5) such other activities as the Secretary determines to be appropriate. (d) Interest rate (1) In general Subject to paragraphs (2) and (3), the interest rate of a loan under subsection (b) shall be established by the Secretary, for each quarter of the applicable fiscal year, based on the rate prescribed in Rural Development Instruction 440.1, exhibit B (or a successor instruction), as in effect on the date on which the loan is approved. (2) Adjustment The interest rate established under paragraph (1) shall be adjusted to the nearest 1/8 of 1 percent. (3) Written request (A) In general Notwithstanding paragraph (1), before the closing date of a loan under subsection (b), the eligible entity applying for the loan may submit to the Secretary a written request that the interest rate to be charged for the loan be equal to the lesser of— (i) the interest rate in effect on the date of the loan approval; and (ii) the interest rate in effect on the date of the loan closing. (B) Temporary debt instruments If a request submitted under subparagraph (A) is approved by the Secretary providing that the applicable interest rate shall be the interest rate in effect on the date of the loan closing, the interest rate charged on a loan involving multiple advances of Federal funds using temporary debt instruments shall be the interest rate in effect on the date on which the first applicable temporary debt instrument is issued. (e) Authorization of appropriations There is authorized to be appropriated to carry out this section $100,000,000..