Prompt approval of loans and loan guarantees

(a) In general Section 333A of the of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a) is amended— (1) in subsection (g)— (A) by striking paragraph (1) and inserting the following: (1) Real estate and operating guaranteed loans (A) In general The Secretary shall provide to lenders a short, simplified application form for real estate and operating guaranteed loans of not more than $1,000,000 under this title. (B) Notice Not later than 5 business days after receipt of an application to guarantee a real estate or operating loan described in subparagraph (A) originated by a Preferred Certified Lender or Certified Lender, the Secretary shall notify the lender as to whether the application is approved or disapproved. (C) Maximum guarantee The percentage of the principal amount of a loan that may be guaranteed pursuant to this paragraph shall not exceed— (i) 90 percent, in the case of a loan of not more than $125,000; (ii) 75 percent, in the case of a loan of more than $125,000 and not more than $500,000; or (iii) 50 percent, in the case of a loan of more than $500,000 and not more than $1,000,000.; (B) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (C) by inserting after paragraph (1) the following: (2) Business and industry guaranteed loans to assist rural entities (A) In general The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of applications for business and industry guaranteed loans of not more than $400,000 to assist rural entities, as described in section 310B(a)(2)(A). (B) Exception The accelerated application process developed under subparagraph (A) shall apply to a loan of more than $400,000, but not more than $600,000, if the Secretary determines that there is not a significant increased risk of a default on the loan.; and (2) by striking subsection (h). (b) Authority to include certain certified lenders as preferred certified lenders Section 339(d)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1989(d)) is amended— (1) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; (2) by striking the paragraph designation and heading and all that follows through the Secretary in the matter preceding clause (i) (as so redesignated) and inserting the following: (1) Establishment (A) In general The Secretary; and (3) by striking the undesignated matter following subparagraph (A)(iii) (as so redesignated) and inserting the following: (B) Certification The Secretary shall certify as a Preferred Certified Lender— (i) any lending institution that meets such criteria as the Secretary may prescribe by regulation; and (ii) any lending institution certified under subsection (c), if the Secretary determines that including the lending institution in the program under this subsection is feasible as a result of the lending institution meeting alternative eligibility criteria established by the Secretary..