Persons eligible for loans

(a) Ownership Loans Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended— (1) in paragraph (1), in the second sentence, by striking a majority each place it appears and inserting at least a 50 percent; and (2) in paragraph (2), by striking subparagraphs (A) and (B) and inserting the following: (A) Eligibility of qualified operators A qualified operator (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 are owners of the farm real estate collectively own at least 50 percent (or such other percentage as the Secretary determines to be 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), 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.. (b) Operating Loans Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(a)) is amended— (1) in paragraph (1), by striking a majority each place it appears and inserting at least a 50 percent; and (2) in paragraph (2)— (A) by striking ownership interests and all that follows through the period at the end and inserting total ownership interests of that entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm improved or supported with funds under this subtitle.; and (B) by striking the paragraph designation and heading and all that follows through An entity and inserting the following: (2) Special rules (A) Eligibility of qualified operators A qualified operator (as defined by the Secretary) shall be considered to meet the operator requirement of paragraph (1). (B) Eligibility of certain operating-only entities An entity. (c) Emergency Loans Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended— (1) in subsection (a)— (A) in the first sentence, in the matter preceding the proviso— (i) by striking (A) and inserting (i); (ii) by striking (B) and inserting (ii); (iii) by striking (1) and inserting (A); (iv) by striking (2) and inserting (B); and (v) by striking a majority each place it appears and inserting at least a 50 percent; (B) in the second sentence, by striking this subsection and inserting this paragraph; (C) by striking the fifth sentence; and (D) by adding at the end the following: (2) Special rules (A) Eligibility of qualified operators A qualified operator (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 are owners of the farm real estate collectively own at least 50 percent (or such other percentage as the Secretary determines to be 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), 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.; and (2) by striking the section designation and all that follows through shall make and insure in subsection (a) and inserting the following: 321. Eligibility for loans (a) In general (1) Eligibility requirements The Secretary shall make and insure.