
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1932]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER I--REAL ESTATE LOANS
 
Sec. 1932. Rural industrialization assistance


(a) Loans for private business enterprises; pollution abatement and 
        control; aquaculture; solar energy; loan guarantees

    The Secretary may also make and insure loans to public, private, or 
cooperative organizations organized for profit or nonprofit, to Indian 
tribes on Federal and State reservations or other federally recognized 
Indian tribal groups, or to individuals for the purposes of (1) 
improving, developing, or financing business, industry, and employment 
and improving the economic and environmental climate in rural 
communities, including pollution abatement and control, (2) the 
conservation, development, and use of water for aquaculture purposes in 
rural areas, (3) reducing the reliance on nonrenewable energy resources 
by encouraging the development and construction of solar energy systems, 
including the modification of existing systems, in rural areas, and (4) 
to facilitate economic opportunity for industries undergoing adjustment 
from terminated Federal agricultural price and income support programs 
or increased competition from foreign trade. For the purposes of this 
subsection, the term ``solar energy'' means energy derived from sources 
(other than fossil fuels) and technologies included in the Federal 
Nonnuclear Energy Research and Development Act of 1974, as amended [42 
U.S.C. 5901 et seq.]. Such loans, when originated, held, and serviced by 
other lenders, may be guaranteed by the Secretary under this section 
without regard to paragraphs (1) and (4) of section 1983 of this title. 
As used in this subsection, the term ``aquaculture'' means the culture 
or husbandry of aquatic animals or plants by private industry for 
commercial purposes including the culture and growing of fish by private 
industry for the purpose of creating or augmenting publicly owned and 
regulated stocks of fish. No loan may be made, insured, or guaranteed 
under this subsection that exceeds $25,000,000 in principal amount.

(b) Solid waste management grants

    The Secretary may make grants to nonprofit organizations for the 
provision of regional technical assistance to local and regional 
governments and related agencies for the purpose of reducing or 
eliminating pollution of water resources and improving the planning and 
management of solid waste disposal facilities. Grants made under this 
paragraph for the provision of technical assistance shall be made for 
100 percent of the cost of such assistance.

(c) Rural business enterprise grants

                           (1) In general

        The Secretary may also make grants, not to exceed $50,000,000 
    annually, to public bodies and private nonprofit corporations for 
    measures designed to finance and facilitate development of small and 
    emerging private business enterprises (including nonprofit entities) 
    or the creation, expansion, and operation of rural distance learning 
    networks or rural learning programs that provide educational 
    instruction or job training instruction related to potential 
    employment or job advancement to adult students, including the 
    development, construction or acquisition of land, buildings, plants, 
    equipment, access streets and roads, parking areas, utility 
    extensions, necessary water supply and waste disposal facilities, 
    refinancing, services and fees.

         (2) Passenger transportation services or facilities

        The Secretary may award grants on a competitive basis to 
    qualified nonprofit organizations for the provision of technical 
    assistance and training to rural communities for the purpose of 
    improving passenger transportation services or facilities. 
    Assistance provided under this paragraph may include on-site 
    technical assistance to local and regional governments, public 
    transit agencies, and related nonprofit and for-profit organizations 
    in rural areas, the development of training materials, and the 
    provision of necessary training assistance to local officials and 
    agencies in rural areas.

      (3) Grants to aid industries in adjusting to terminated 
             Federal agricultural programs or increased foreign 
                                 competition

        The Secretary may make grants under this section to facilitate 
    economic opportunity for industries undergoing adjustment from 
    terminated Federal agricultural price and income support programs or 
    increased competition from foreign trade.

(d) Joint loans or grants for private business enterprises; 
        restrictions; system of certification for expeditious processing 
        of requests for assistance; prior approval of grant or loan; 
        equity investment as condition for loan commitment; issuance of 
        certificates of beneficial ownership of notes

    (1) The Secretary may participate in joint financing to facilitate 
development of private business enterprises in rural areas with the 
Economic Development Administration, the Small Business Administration, 
and the Department of Housing and Urban Development and other Federal 
and State agencies and with private and quasi-public financial 
institutions, through joint loans to applicants eligible under 
subsection (a) of this section for the purpose of improving, developing, 
or financing business, industry, and employment and improving the 
economic and environmental climate in rural areas or through joint 
grants to applicants eligible under subsection (c) of this section for 
such purposes, including in the case of loans or grants the development, 
construction, or acquisition of land, buildings, plants, equipment, 
access streets and roads, parking areas, utility extensions, necessary 
water supply and waste disposal facilities, refining, service and fees.
    (2) No financial or other assistance shall be extended under any 
provision of this section, except for cases in which such assistance 
does not exceed $1,000,000 or for cases in which direct employment will 
not be increased by more than fifty employees, that is calculated to or 
is likely to result in the transfer from one area to another of any 
employment or business activity provided by operations of the applicant, 
but this limitation shall not be construed to prohibit assistance for 
the expansion of an existing business entity through the establishment 
of a new branch, affiliate, or subsidiary of such entity if the 
establishment of such branch, affiliate, or subsidiary will not result 
in an increase in unemployment in the area of original location or in 
any other area where such entity conducts business operations unless 
there is reason to believe that such branch, affiliate, or subsidiary is 
being established with the intention of closing down the operations of 
the existing business entity in the area of its original location or in 
any other area where it conducts such operations.
    (3) No financial or other assistance shall be extended under any 
provision of this section, except for cases in which such assistance 
does not exceed $1,000,000 or for cases in which direct employment will 
not be increased by more than fifty employees, which is calculated to or 
likely to result in an increase in the production of goods, materials, 
or commodities, or the availability of services or facilities in the 
area, when there is not sufficient demand for such goods, materials, 
commodities, services or facilities, to employ the efficient capacity of 
existing competitive commercial or industrial enterprises, unless such 
financial or other assistance will not have an adverse effect upon 
existing competitive enterprises in the area.
    (4) No financial or other assistance shall be extended under any 
provision of this section, except for cases in which such assistance 
does not exceed $1,000,000 or for cases in which direct employment will 
not be increased by more than fifty employees, if the Secretary of Labor 
certifies within 30 days after the matter has been submitted to him by 
the Secretary of Agriculture that the provisions of paragraphs (2) and 
(3) of this subsection have not been complied with. The Secretary of 
Labor shall, in cooperation with the Secretary of Agriculture, develop a 
system of certification which will insure the expeditious processing of 
requests for assistance under this section.
    (5) No grant or loan authorized to be made under this chapter shall 
require or be subject to the prior approval of any officer, employee, or 
agency of any State.
    (6) No loan commitment issued under this section shall be 
conditioned upon the applicant investing in excess of 10 per centum in 
the business or industrial enterprise for which purpose the loan is to 
be made unless the Secretary determines there are special circumstances 
which necessitate an equity investment by the applicant greater than 10 
per centum.
    (7) No provision of law shall prohibit issuance by the Secretary of 
certificates evidencing beneficial ownership in a block of notes insured 
or guaranteed under this chapter or Title V of the Housing Act of 1949 
[42 U.S.C. 1471 et seq.]; any sale by the Secretary of such certificates 
shall be treated as a sale of assets for the purposes of chapter 11 of 
title 31. Any security representing beneficial ownership in a block of 
notes guaranteed or insured under this chapter or Title V of the Housing 
Act of 1949 issued by a private entity shall be exempt from laws 
administered by the Securities and Exchange Commission, except sections 
77q, 77v, and 77x of title 15; however, the Secretary shall require (i) 
that the issuer place such notes in the custody of an institution 
chartered by a Federal or State agency to act as trustee and (ii) that 
the issuer provide such periodic reports of sales as the Secretary deems 
necessary.

(e) Rural cooperative development grants

                           (1) Definitions

        In this subsection:

        (A) Nonprofit institution

            The term ``nonprofit institution'' means any organization or 
        institution, including an accredited institution of higher 
        education, no part of the net earnings of which inures, or may 
        lawfully inure, to the benefit of any private shareholder or 
        individual.

        (B) United States

            The term ``United States'' means the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, and the other territories 
        and possessions of the United States.

                             (2) Grants

        The Secretary shall make grants, effective October 1, 1996, 
    under this subsection to nonprofit institutions for the purpose of 
    enabling the institutions to establish and operate centers for rural 
    cooperative development.

                              (3) Goals

        The goals of a center funded under this subsection shall be to 
    facilitate the creation of jobs in rural areas through the 
    development of new rural cooperatives, value added processing, and 
    rural businesses.

                           (4) Application

        Any nonprofit institution seeking a grant under paragraph (2) 
    shall submit to the Secretary an application containing a plan for 
    the establishment and operation by the institution of a center or 
    centers for cooperative development. The Secretary may approve the 
    application if the plan contains the following:
            (A) A provision that substantiates that the center will 
        effectively serve rural areas in the United States.
            (B) A provision that the primary objective of the center 
        will be to improve the economic condition of rural areas through 
        cooperative development.
            (C) A description of the activities that the center will 
        carry out to accomplish the objective. The activities may 
        include the following:
                (i) Programs for applied research and feasibility 
            studies that may be useful to individuals, cooperatives, 
            small businesses, and other similar entities in rural areas 
            served by the center.
                (ii) Programs for the collection, interpretation, and 
            dissemination of information that may be useful to 
            individuals, cooperatives, small businesses, and other 
            similar entities in rural areas served by the center.
                (iii) Programs providing training and instruction for 
            individuals, cooperatives, small businesses, and other 
            similar entities in rural areas served by the center.
                (iv) Programs providing loans and grants to individuals, 
            cooperatives, small businesses, and other similar entities 
            in rural areas served by the center.
                (v) Programs providing technical assistance, research 
            services, and advisory services to individuals, 
            cooperatives, small businesses, and other similar entities 
            in rural areas served by the center.
                (vi) Programs providing for the coordination of services 
            and sharing of information among the center.\1\
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``centers.''

            (D) A description of the contributions that the activities 
        are likely to make to the improvement of the economic conditions 
        of the rural areas for which the center will provide services.
            (E) Provisions that the center, in carrying out the 
        activities, will seek, where appropriate, the advice, 
        participation, expertise, and assistance of representatives of 
        business, industry, educational institutions, the Federal 
        Government, and State and local governments.
            (F) Provisions that the center will take all practicable 
        steps to develop continuing sources of financial support for the 
        center, particularly from sources in the private sector.
            (G) Provisions for--
                (i) monitoring and evaluating the activities by the 
            nonprofit institution operating the center; and
                (ii) accounting for money received by the institution 
            under this section.

                         (5) Awarding grants

        Grants made under paragraph (2) shall be made on a competitive 
    basis. In making grants under paragraph (2), the Secretary shall 
    give preference to grant applications providing for the 
    establishment of centers for rural cooperative development that--
            (A) demonstrate a proven track record in administering a 
        nationally coordinated, regionally or State-wide operated 
        project;
            (B) demonstrate previous expertise in providing technical 
        assistance in rural areas;
            (C) demonstrate the ability to assist in the retention of 
        businesses, facilitate the establishment of cooperatives and new 
        cooperative approaches, and generate employment opportunities 
        that will improve the economic conditions of rural areas;
            (D) demonstrate the ability to create horizontal linkages 
        among businesses within and among various sectors in rural areas 
        of the United States and vertical linkages to domestic and 
        international markets;
            (E) commit to providing technical assistance and other 
        services to underserved and economically distressed areas in 
        rural areas of the United States; and
            (F) commit to providing greater than a 25 percent matching 
        contribution with private funds and in-kind contributions.

        (6) 1-year grants; authority to approve grant for 1 
                     additional year without application

        The Secretary shall make grants under this subsection for a 
    period of 1 year. The Secretary shall evaluate programs receiving 
    assistance under this subsection. If the Secretary determines it to 
    be in the best interest of the program, the Secretary may award an 
    additional grant to the program for the immediately succeeding year 
    without application for the grant.

     (7) Technical assistance to prevent excessive unemployment 
                             or underemployment

        In carrying out this subsection, the Secretary may provide 
    technical assistance to alleviate or prevent conditions of excessive 
    unemployment, underemployment, outmigration, or low employment 
    growth in economically distressed rural areas that the Secretary 
    determines have a substantial need for the assistance. The 
    assistance may include planning and feasibility studies, management 
    and operational assistance, and studies evaluating the need for 
    development potential of projects that increase employment and 
    improve economic growth in the areas.

              (8) Grants to defray administrative costs

        The Secretary may make grants to defray not to exceed 75 percent 
    of the costs incurred by organizations and public bodies to carry 
    out projects for which grants or loans are made under this 
    subsection. For purposes of determining the non-Federal share of the 
    costs, the Secretary shall consider contributions in cash and in 
    kind, fairly evaluated, including premises, equipment, and services.

                 (9) Authorization of appropriations

        There are authorized to be appropriated to carry out this 
    subsection $50,000,000 for each of fiscal years 1996 through 2002.

(f) Grants to broadcasting systems

                      (1) ``Statewide'' defined

        In this subsection, the term ``statewide'' means having a 
    coverage area of not less than 90 percent of the population of a 
    State and not less than 80 percent of the rural land area of the 
    State (as determined by the Secretary).

                             (2) Grants

        The Secretary may make grants to statewide private nonprofit 
    public television systems, whose coverage area is predominately 
    rural, for the purpose of demonstrating the effectiveness of such 
    systems in providing information on agriculture and other issues of 
    importance to farmers and other rural residents. Grants available 
    under this paragraph may be used for capital equipment expenditures, 
    start-up and program costs, and other costs necessary to the 
    operation of such demonstrations.

(g) Loan guarantees for purchase of cooperative stock

                       (1) ``Farmer'' defined

        In this subsection, the term ``farmer'' means any farmer that 
    the Secretary determines is a family farmer.

                         (2) Loan guarantees

        The Secretary may guarantee loans under this section to 
    individual farmers for the purpose of purchasing start-up capital 
    stock of a farmer cooperative established for the purpose of 
    processing an agricultural commodity.

                           (3) Eligibility

        To be eligible for a loan guarantee under this subsection, a 
    farmer must produce the agricultural commodity that will be 
    processed by the cooperative.

(Pub. L. 87-128, title III, Sec. 310B, as added Pub. L. 92-419, title I, 
Sec. 118(a), Aug. 30, 1972, 86 Stat. 663; amended Pub. L. 91-524, title 
VIII, Sec. 817, as added Pub. L. 93-86, Sec. 1(27)(B), Aug. 10, 1973, 87 
Stat. 241; Pub. L. 95-113, title XV, Sec. 1503(b), Sept. 29, 1977, 91 
Stat. 1021; Pub. L. 95-334, title I, Sec. 112, Aug. 4, 1978, 92 Stat. 
424; Pub. L. 96-358, Sec. 5, Sept. 25, 1980, 94 Stat. 1187; Pub. L. 96-
438, Sec. 1(2), Oct. 13, 1980, 94 Stat. 1871; Pub. L. 99-409, Sec. 2, 
Aug. 28, 1986, 100 Stat. 923; Pub. L. 100-203, title I, Sec. 1504, Dec. 
22, 1987, 101 Stat. 1330-28; Pub. L. 101-624, title XXIII, Secs. 2325, 
2337, 2347, formerly 2347(a), 2386, 2388(b), (c), Nov. 28, 1990, 104 
Stat. 4013, 4022, 4034, 4051, 4052; Pub. L. 102-237, title VII, 
Sec. 701(c), (h)(1)(C), (D), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub. 
L. 102-552, title V, Sec. 516(d), Oct. 28, 1992, 106 Stat. 4137; Pub. L. 
102-554, Sec. 6, Oct. 28, 1992, 106 Stat. 4144; Pub. L. 104-127, title 
VI, Secs. 635(b), 661(d), title VII, Secs. 705(1), 747(a), 759B, Apr. 4, 
1996, 110 Stat. 1093, 1107, 1112, 1125, 1138; Pub. L. 104-180, title 
VII, Sec. 731, Aug. 6, 1996, 110 Stat. 1600.)

                       References in Text

    The Federal Nonnuclear Energy Research and Development Act of 1974, 
as amended, referred to in subsec. (a), is Pub. L. 93-577, Dec. 31, 
1974, 88 Stat. 1878, as amended, which is classified generally to 
chapter 74 (Sec. 5901 et seq.) of Title 42, The Public Health and 
Welfare. For complete classification of this Act to the Code, see Short 
Title note set out under section 5901 of Title 42 and Tables.
    For definition of ``this chapter'', referred to in subsec. (d)(5), 
(7), see note set out under section 1921 of this title.
    Title V of the Housing Act of 1949, referred to in subsec. (d)(7), 
is title V of act July 15, 1949, ch. 338, 63 Stat. 432, as amended, 
which is classified generally to subchapter III (Sec. 1471 et seq.) of 
chapter 8A of Title 42, The Public Health and Welfare. For complete 
classification of this Act to the code, see References in Text note set 
out under section 1441 of Title 42 and Tables.

                          Codification

    In subsec. (d)(7), ``chapter 11 of title 31'' substituted for ``the 
Budget and Accounting Act of 1921 [31 U.S.C. 1 et seq.]'' on authority 
of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first 
section of which enacted Title 31, Money and Finance.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127, Sec. 747(a)(1), in first 
sentence, struck out ``and'' before ``(3)'' and inserted before period 
at end ``, and (4) to facilitate economic opportunity for industries 
undergoing adjustment from terminated Federal agricultural price and 
income support programs or increased competition from foreign trade''.
    Pub. L. 104-127, Sec. 635(b), in third sentence, substituted ``(4) 
of'' for ``(3) of''.
    Subsec. (b). Pub. L. 104-127, Sec. 747(a)(2), inserted heading, 
redesignated par. (2) as subsec. (b), struck out ``(2)'' before ``The 
Secretary'', and struck out par. (1) which read as follows: ``Secretary 
may make grants, not to exceed $50,000,000 annually, to eligible 
applicants under this section for pollution abatement and control 
projects in rural areas. No such grant shall exceed 50 per centum of the 
development cost of such a project.''
    Subsec. (c). Pub. L. 104-127, Sec. 747(a)(3), inserted heading, in 
par. (1), inserted par. heading and inserted ``(including nonprofit 
entities)'' after ``private business enterprises'', in par. (2), 
inserted par. heading and substituted ``award grants on a competitive 
basis'' for ``make grants'', and added par. (3).
    Subsec. (d)(2) to (4). Pub. L. 104-127, Sec. 661(d)(1), substituted 
``provision of this section'' for ``provision of this section and 
sections 1924(b) and 1942(b) of this title''.
    Subsec. (d)(6). Pub. L. 104-127, Sec. 661(d)(2), substituted ``this 
section'' for ``this section, section 1924 of this title, or section 
1942 of this title''.
    Subsec. (e). Pub. L. 104-127, Sec. 747(a)(4), added subsec. (e) and 
struck out former subsec. (e) which authorized the insuring or 
guaranteeing of loans for the purpose of constructing or improving 
subterminal facilities.
    Subsec. (e)(2). Pub. L. 104-180 amended Pub. L. 104-127, 
Sec. 747(a)(4), which enacted subsec. (e), to insert ``effective October 
1, 1996,'' after ``The Secretary shall make grants'' in par. (2).
    Subsec. (f). Pub. L. 104-127, Sec. 759B, added par. (1), 
redesignated existing provisions as par. (2), and added par. heading.
    Pub. L. 104-127, Sec. 747(a)(5), (6), redesignated subsec. (j) as 
(f) and struck out former subsec. (f) which authorized grants to 
nonprofit institutions for the purpose of establishing and operating 
centers for rural technology or cooperative development. See subsec. (e) 
of this section.
    Pub. L. 104-127, Sec. 705(1), made technical amendment to directory 
language of Pub. L. 101-624, Sec. 2347(a). See 1990 Amendment note 
below.
    Subsec. (g). Pub. L. 104-127, Sec. 747(a)(5), (7), added subsec. (g) 
and struck out former subsec. (g) which read as follows: ``In carrying 
out subsection (f) of this section, the Secretary may provide technical 
assistance to alleviate or prevent conditions of excessive unemployment 
or underemployment of persons residing in economically distressed rural 
areas that the Secretary determines have a substantial need for such 
assistance. Such assistance shall include planning and feasibility 
studies, management and operational assistance, and studies evaluating 
the needs for development potential of projects that increase employment 
and improve economic growth in such areas.''
    Pub. L. 104-127, Sec. 705(1), made technical amendment to directory 
language of Pub. L. 101-624, Sec. 2347(a). See 1990 Amendment note 
below.
    Subsec. (h). Pub. L. 104-127, Sec. 747(a)(5), struck out subsec. (h) 
which read as follows: ``The Secretary may make grants to defray not to 
exceed 75 percent of the administrative costs incurred by organizations 
and public bodies to carry out projects for which grants or loans are 
made under subsection (f) of this section. For purposes of determining 
the non-Federal share of such costs, the Secretary shall consider 
contributions in cash and in kind, fairly evaluated, including but not 
limited to premises, equipment, and services.''
    Pub. L. 104-127, Sec. 705(1), made technical amendment to directory 
language of Pub. L. 101-624, Sec. 2347(a). See 1990 Amendment note 
below.
    Subsec. (i). Pub. L. 104-127, Sec. 747(a)(5), struck out subsec. (i) 
which authorized making of loans at low interest rates and at market 
rates to 1 or more businesses, local governments, or public agencies in 
rural areas to fund facilities in which recipients of such loans share 
telecommunications terminal equipment, computers, computer software, and 
computer hardware.
    Subsec. (j). Pub. L. 104-127, Sec. 747(a)(6), redesignated subsec. 
(j) as (f).
    1992--Subsec. (c). Pub. L. 102-554 designated existing provisions as 
par. (1) and added par. (2).
    Pub. L. 102-552, which directed the substitution of ``business 
enterprises or the creation, expansion, and operation of rural distance 
learning networks or rural learning programs that provide educational 
instruction or job training instruction related to potential employment 
or job advancement to adult students,'' for ``business enterprises,'' in 
section 310B(c) without specifying the name of the act, was executed to 
this section, which is section 310B of the Consolidated Farm and Rural 
Development Act, to reflect the probable intent of Congress.
    1991--Subsec. (d)(5), (7). Pub. L. 102-237, Sec. 701(h)(1)(C), (D), 
substituted ``this chapter'' for ``this Act''.
    Subsec. (f)(4). Pub. L. 102-237, Sec. 701(c)(3), (4), redesignated 
par. (4), relating to grants to statewide private nonprofit public 
television systems, as subsec. (j), and transferred such provision to 
follow subsec. (i).
    Subsec. (i)(2)(B)(iv). Pub. L. 102-237, Sec. 701(c)(1), substituted 
``(iii) of this subparagraph'' for ``(ii) of this subsection''.
    Subsec. (i)(5)(A). Pub. L. 102-237, Sec. 701(c)(2), inserted closing 
parenthesis after ``section 2008(b)(3) of this title''.
    Subsec. (j). Pub. L. 102-237, Sec. 701(c)(3)-(5), redesignated 
subsec. (f)(4), relating to grants to statewide private nonprofit public 
television systems, as subsec. (j), transferred such provision to follow 
subsec. (i), and inserted heading.
    1990--Subsec. (a). Pub. L. 101-624, Sec. 2388(b), substituted 
``paragraphs (1) and (3)'' for ``subsections (a) and (c)''.
    Subsec. (b). Pub. L. 101-624, Sec. 2325, designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (d). Pub. L. 101-624, Sec. 2388(c), designated first par. 
and and pars. (1) to (6) as (1) to (7), respectively, substituted 
``paragraphs (2) and (3)'' for ``paragraph (1) and (2)'' in par. (4), 
and realigned margins of pars. (5) to (7).
    Subsec. (f). Pub. L. 101-624, Sec. 2386, added par. (4) relating to 
grants to statewide private nonprofit public television systems.
    Pub. L. 101-624, Sec. 2347, formerly Sec. 2347(a), as renumbered by 
Pub. L. 104-127, Sec. 705(1), added subsec. (f) and struck out former 
subsec. (f) which read as follows:
    ``(1) The Secretary may make grants under this subsection to public 
and nonprofit private institutions for the purpose of enabling them to 
establish and operate centers of rural technology development that have, 
as a primary objective, the improvement of the economic condition of 
rural areas by promoting the development (through technological 
innovation and adaptation of existing technology) and commercialization 
of (A) new products that can be produced in rural areas, and (B) new 
processes that can be used in such production.
    ``(2) Grants under this subsection may be made on a competitive 
basis. In making grants, the Secretary shall give preference to 
applicants that will establish centers for rural technology in areas 
that have (A) few industries and agribusinesses, (B) high levels of 
unemployment, (C) high rates of out-migration of people, business, and 
industries, and (D) low levels of per capita income.
    ``(3) If grants are to be made under this subsection, the Secretary 
shall issue regulations implementing this subsection that shall include 
provisions for the monitoring and evaluation of the rural technology 
development activities carried out by institutions that receive grants 
under this subsection.''
    Subsecs. (g), (h). Pub. L. 101-624, Sec. 2347, formerly 
Sec. 2347(a), as renumbered by Pub. L. 104-127, Sec. 705(1), added 
subsecs. (g) and (h).
    Subsec. (i). Pub. L. 101-624, Sec. 2337, added subsec. (i).
    1987--Subsec. (c). Pub. L. 100-203 inserted ``and private nonprofit 
corporations'' after ``to public bodies'' and substituted ``to finance 
and facilitate development of small and emerging'' for ``to facilitate 
development of''.
    1986--Subsec. (a). Pub. L. 99-409, Sec. 2(1), inserted provision 
that no loan may be made, insured, or guaranteed under this subsection 
that exceeds $25,000,000 in principal amount.
    Subsec. (f). Pub. L. 99-409, Sec. 2(2), added subsec. (f).
    1980--Subsec. (a). Pub. L. 96-438 authorized the Secretary to make 
and insure loans for the purpose of reducing the reliance on 
nonrenewable energy resources by encouraging the development and 
construction of solar energy systems, including the modification of 
existing systems, in rural areas and defined term ``solar energy'', for 
purposes of subsection (a) of this section, as meaning energy derived 
from sources, other than fossil fuels, and technologies included in the 
Federal Nonnuclear Energy Research and Development Act of 1974, as 
amended.
    Subsec. (e). Pub. L. 96-358 added subsec. (e).
    1978--Subsec. (d)(1), (2). Pub. L. 95-334, Sec. 112(1), inserted 
exception for assistance less than $1,000,000, or where direct 
employment will not be increased by more than 50 employees.
    Subsec. (d)(3). Pub. L. 95-334, Sec. 112, inserted exception for 
assistance less than $1,000,000, or where direct employment will not be 
increased by more than 50 employees and substituted ``30'' for ``60''.
    1977--Subsec. (a). Pub. L. 95-113 inserted reference to the 
conservation, development, and utilization of water for aquaculture 
purposes and inserted definition of ``aquaculture''.
    1973--Subsec. (d)(4) to (6). Pub. L. 91-524, Sec. 817, as added by 
Pub. L. 93-86, added pars. (4) to (6).


                    Effective Date of 1996 Amendment

    Section 731 of Pub. L. 104-180 provided in part: ``That this section 
[amending this section] shall take effect upon enactment of this Act 
into law [Aug. 6, 1996].''


                    Effective Date of 1991 Amendment

    Amendment by section 701(c) of Pub. L. 102-237 effective as if 
included in the provision of the Food, Agriculture, Conservation, and 
Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, and 
amendment by section 701(h)(1)(C), (D) of Pub. L. 102-237 to any 
provision specified therein effective as if included in Act that added 
provision so specified at the time such Act became law, see section 
1101(b)(6), (c) of Pub. L. 102-237, set out as a note under section 1421 
of this title.


                    Effective Date of 1986 Amendment

    Section 2(2) of Pub. L. 99-409 provided that the amendment made by 
that section is effective Oct. 1, 1986.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-358 effective Oct. 1, 1980, see section 6 of 
Pub. L. 96-358, set out as an Effective Date note under section 3701 of 
this title.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 
of Pub. L. 95-113, set out as a note under section 1307 of this title.

                          Transfer of Functions

    Powers, duties, and assets of agencies, offices, and other entities 
within Department of Agriculture relating to rural development functions 
under this section and under section 1323 of Pub. L. 99-198, set out as 
a note below, transferred to Rural Development Administration by section 
2302(b) of Pub. L. 101-624.


                          Business Development

    Section 2336 of Pub. L. 101-624 provided that: ``The purposes of 
this chapter [chapter 2 (Secs. 2336, 2337) of subtitle D of title XXIII 
of Pub. L. 101-624, amending this section] are to--
        ``(1) provide funds to improve telecommunications service in 
    rural areas; and
        ``(2) provide access to advanced telecommunications services and 
    computer networks to improve job opportunities and the business 
    environment in rural areas.''


  Guarantee by Secretary of Agriculture of Loans to Nonprofit National 
               Rural Development and Finance Corporations

    Pub. L. 99-198, title XIII, Sec. 1323, Dec. 23, 1985, 99 Stat. 1534, 
as amended by Pub. L. 99-425, title IV, Sec. 407(c), Sept. 30, 1986, 100 
Stat. 971; Pub. L. 99-500, Sec. 101(a) [title VI, Sec. 641], Oct. 18, 
1986, 100 Stat. 1783, 1783-35, and Pub. L. 99-591, Sec. 101(a) [title 
VI, Sec. 641], Oct. 30, 1986, 100 Stat. 3341, 3341-35; Pub. L. 100-202, 
Sec. 101(k) [title VI, Sec. 636], Dec. 22, 1987, 101 Stat. 1329-322, 
1329-357, provided that:
    ``(a)(1) Prior to September 30, 1988, the Secretary of Agriculture 
(hereafter in this section referred to as the `Secretary') shall 
guarantee loans made by public agencies or private organizations 
(including loans made by financial institutions such as insurance 
companies) to nonprofit national rural development and finance 
corporations that establish similar and affiliated statewide rural 
development and finance programs for the purpose of providing loans, 
guarantees, and other financial assistance to profit or nonprofit local 
businesses to improve business, industry, and employment opportunities 
in a rural area (as determined by the Secretary).
    ``(2) To be eligible to obtain a loan guarantee under this 
subsection, a corporation must--
        ``(A) demonstrate to the Secretary the ability of the 
    corporation to administer a national revolving rural development 
    loan program;
        ``(B) be prepared to commit financial resources under the 
    control of the corporation to the establishment of affiliated 
    statewide rural development and finance programs; and
        ``(C) have secured commitments of significant financial support 
    from public agencies and private organizations for such affiliated 
    statewide programs.
    ``(3) A national rural development and finance corporation receiving 
a loan guarantee under this subsection shall base a determination to 
establish an affiliated statewide program in large part on the 
willingness of States and private organizations to sponsor and make 
funds available to such program.
    ``(4) Notwithstanding any other provision of law, for the fiscal 
year ending September 30, 1986, of the amounts available to guarantee 
loans in accordance with section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) from the Rural Development Insurance 
Fund, $20,000,000 shall be used by the Secretary to guarantee loans 
under the national rural development and finance program established 
under this subsection, to remain available until expended.
    ``(5) Notwithstanding any provision to the contrary of subsection 
(4) above, the $20,000,000 which was available pursuant to subsection 
(4) shall continue to be available and shall be used by the Secretary 
prior to September 30, 1988, to guarantee loans for the national rural 
development and finance program and shall remain available until 
expended.
    ``(b)(1) Prior to September 30, 1988, the Secretary shall make 
grants, from funds transferred under paragraph (2), to national rural 
development and finance corporations for the purpose of establishing a 
rural development program to provide financial and technical assistance 
to compliment the loan guarantees made or to be made to such 
corporations under subsection (a).
    ``(2) All funds in, appropriated to, or repaid to the Rural 
Development Loan Fund, including those on deposit and available upon 
date of enactment [Dec. 23, 1985], under sections 623 and 633 [42 U.S.C. 
9812, 9822] of the Community Economic Development Act of 1981 (42 U.S.C. 
9801 et seq.) shall be transferred to the Secretary provided that--
        ``(A) all funds on deposit and available on date of enactment 
    shall be used for the purpose of making grants under paragraph (1) 
    and shall remain available until expended;
        ``(B) notwithstanding any other provision of law, all loans to 
    intermediary borrowers made prior to date of enactment, shall upon 
    date of enactment, for the life of such loan, bear a rate of 
    interest not to exceed that in effect upon the date of issuance of 
    such loans; and
        ``(C) notwithstanding paragraph (1), all funds other than funds 
    to which subparagraph (A) applies shall be used by the Secretary to 
    make loans--
            ``(i) to the entities;
            ``(ii) for the purposes; and
            ``(iii) subject to the terms and conditions;
    specified in the first, second, and last sentences of section 623(a) 
    of the Community Economic Development Act of 1981 (42 U.S.C. 
    9812(a)). For purposes of this subparagraph, any reference in such 
    sentences to the Secretary shall be deemed to be a reference to the 
    Secretary of Agriculture.''

    Pub. L. 99-500, Sec. 101(a) [title VI, Sec. 641], Oct. 18, 1986, 100 
Stat. 1783, 1783-35, and Pub. L. 99-591, Sec. 101(a) [title VI, 
Sec. 641], Oct. 30, 1986, 100 Stat. 3341, 3341-35, provided in part: 
``That such grant funds [probably means grant funds under section 
1323(b)(1) of Pub. L. 99-198, set out above] may be used by such 
corporation to provide technical assistance and financial assistance, 
including capitalizing revolving loan programs, pursuant to the Act.''


         Limits on Grants for Fiscal Years 1982, 1983, and 1984

    Pub. L. 97-35, title I, Sec. 120, Aug. 13, 1981, 95 Stat. 367, 
provided in part that, notwithstanding any other provision of law, there 
was authorized to be appropriated for grants pursuant to section 310B(c) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) not 
to exceed: $5,007,000 for fiscal year 1982, $5,280,000 for fiscal year 
1983, and $5,553,000 for fiscal year 1984.

                  Section Referred to in Other Sections

    This section is referred to in sections 917, 1927, 1929a, 1983, 
1983a, 1992, 2009d, 6613, 6942, 6944 of this title.
