§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, and (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. 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 (3) 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) Grants for pollution abatement and control projects; limitations
(1) The 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.
(2) 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) Grants for private business enterprises or other organizations which provide job training or technical assistance; limitation
(1) 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 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) The Secretary may make grants 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.
(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 and sections 1924(b) and 1942(b) of this title, 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 and sections 1924(b) and 1942(b) of this title, 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 and sections 1924(b) and 1942(b) of this title, 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, section 1924 of this title or section 1942 of this title 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) Construction or improvement of subterminal facilities
(1) The Secretary may also insure and guarantee loans under this section to public, private, or cooperative organizations organized for profit or nonprofit, or to individuals for the purpose of constructing or improving subterminal facilities if-
(A) the construction or improvement of such facilities is consistent with the appropriate approved State or regional plans and the recommendations of the local plan review commission established pursuant to the Agricultural Subterminal Facilities Act of 1980 [7 U.S.C. 3701 et seq.];
(B) the Secretary determines that the ownership and operation of such subterminal facilities will result in the efficient and competitive movement of bulk agricultural commodities and will return increased benefits to the local producers served by such facilities; and
(C) the Secretary determines that the rail carrier designated to provide service to any such facility will be able to provide adequate service.
Such loans may be made available for purchase of rail rolling stock (including locomotives), motor trucks, barges, and other bulk agricultural commodities transport equipment to be used in conjunction with the operation of subterminal facilities.
(2) The Secretary may only insure or guarantee loans under this subsection if the Secretary finds that applicants are unable to obtain credit from commercial lending institutions (including specialized lending institutions established to provide credit to agricultural producers) on reasonable terms and conditions.
(3) In order to preserve local ownership and control of agricultural transportation facilities, the Secretary shall give preference under this subsection to existing agricultural elevator operators and local producers in areas in which subterminal facilities are proposed to be located.
(4)(A) The total amount of loan authority made available for use for the purpose of this subsection for any fiscal year shall be allocated by the Secretary on the basis of need among those States that have approved State or regional plans as defined in the Agricultural Subterminal Facilities Act of 1980 [7 U.S.C. 3701 et seq.]. Such allocation shall be based on such formula as the Secretary shall prescribe by regulation.
(B) Any loan authority available for use in any State in any fiscal year that is not used by such State shall be reallocated, to the extent practicable, among other States eligible for the assistance provided under this section, in accordance with the same formula developed by the Secretary for the initial allocation of loan authority under this subsection.
(5) As used in this subsection, the term "subterminal facility" has the same meaning as provided in the Agricultural Subterminal Facilities Act of 1980 [7 U.S.C. 3701 et seq.].
(6) Within one hundred and eighty days after October 1, 1980, the Secretary shall establish such rules and regulations as may be necessary to implement the provisions of this subsection.
(f) Grants for centers of rural technology and cooperative development
(1) The Secretary shall make grants under this subsection to nonprofit institutions for the purpose of enabling such institutions to establish and operate centers for rural technology or cooperative development.
(2) Any nonprofit institution seeking a grant under paragraph (1) shall submit to the Secretary an application containing a plan for the establishment and operation by such institution of a center for rural technology or cooperative development. The Secretary may approve such application if such plan contains the following:
(A) A provision that substantiates that such center will effectively serve rural areas in the United States.
(B) A provision that the primary objective of such center will be to improve the economic condition of rural areas by promoting the development (through technological innovation, cooperative development, and adaptation of existing technology) and commercialization of-
(i) new services and products that can be produced or provided in rural areas;
(ii) new processes that can be utilized in the production of products in rural areas; and
(iii) new enterprises that can add value to on-farm production through processing or marketing.
(C) A description of the activities that such center will carry out to accomplish such objective. Such activities may include the following:
(i) Programs for technology research, investigations, and basic feasibility studies in any field or discipline for the purpose of generating principles, facts, technical knowledge, new technology, or other information that may be useful to rural industries, cooperatives, agribusinesses, and other persons or entities in rural areas served by such centers in the development and commercialization of new products, processes, or services.
(ii) Programs for the collection, interpretation, and dissemination of principles, facts, technical knowledge, new technology, or other information that may be useful to rural industries, cooperatives, agribusinesses, and other persons in rural areas served by the center in the development and commercialization of new products, processes, or services.
(iii) Programs providing training and instruction for individuals residing in rural areas served by the center with respect to the development (through technological innovation, cooperative development, and adaptation of existing technology) and commercialization of new products, processes, or services.
(iv) Programs providing loans and grants to individuals, small businesses, and cooperatives in rural areas served by the center for purposes of generating, evaluating, developing, and commercializing new products, processes, or services.
(v) Programs providing technical assistance and advisory services to individuals, small businesses, cooperatives, and industries in rural areas served by the center for purposes of developing and commercializing new products, processes, or services.
(vi) Programs providing research and support to individuals, small businesses, cooperatives, and industries in rural areas served by the center for purposes of developing new agricultural enterprises to add value to on-farm production through processing or marketing.
(D) A description of the contributions that such activities are likely to make to the improvement of the economic conditions of the rural areas for which such center will provide services.
(E) Provisions that such center, in carrying out such 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 such center-
(i) will consult with any college or university administering any program under title V of the Rural Development Act of 1972 [7 U.S.C. 2661 et seq.] in the State in which such center is located; and
(ii) will cooperate with such college or university in the coordination of such activities and such program.
(G) Provisions that such center will take all practicable steps to develop continuing sources of financial support for such center, particularly from sources in the private sector.
(H) Provisions for-
(i) monitoring and evaluating such activities by the institution operating such center; and
(ii) accounting for money received by such institution under this section.
(I) Provisions that such center will provide for the optimal application of such technology and cooperative development in rural areas, especially those areas adversely affected by adverse agricultural economic conditions, through the establishment of demonstration projects and subcenters for-
(i) rural technology development where the technology can be implemented by communities, community colleges, businesses, cooperatives, and other institutions; or
(ii) cooperative development where such development can be implemented by cooperatives to improve local economic conditions.
(3) Grants made under paragraph (1) shall be made on a competitive basis. In making grants under paragraph (1), the Secretary shall give preference to grant applications providing for the establishment of centers for rural technology or cooperative development that-
(A) can demonstrate the capability to transfer for practical application in rural areas the technology generated at such centers and the ability to commercialize products, processes, services, and enterprises in such rural areas;
(B) will effectively serve in rural areas that have-
(i) few rural industries and agribusinesses;
(ii) high levels of unemployment or underemployment;
(iii) high rates of outmigration of people, businesses, and industries; and
(iv) low levels of per capita income; and
(C) will contribute the most to the improvement of economic conditions of rural areas.
(4) As used in this subsection:
(A) 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) 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.
(g) Prevention of excessive unemployment or underemployment
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.
(h) Grants to defray administrative costs
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.
(i) Loans for business telecommunications partnerships
(1) In general
The Secretary may make loans under this subsection 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 the recipients of such loans share telecommunications terminal equipment, computers, computer software, and computer hardware.
(2) General requirements
(A) Application process
(i) Submission of application
Any entity desiring a loan under this subsection shall submit an application therefor to the Secretary.
(ii) Contents of application
Each application for a loan under this subsection shall include-
(I) a detailed explanation of the proposed rural telecommunications system, including the general telecommunications transmission services and facilities required, and a list of the specific equipment that the applicant proposes to purchase or lease, to implement the system;
(II) a description of the manner in which the proposed project is to be funded;
(III) a copy of a binding commitment entered into between the applicant and each entity which is legally permitted to provide, and from which the applicant is to obtain, the telecommunications services and facilities required for the project, which stipulates that if the applicant receives the loan requested in the application the entity will provide such telecommunications services and facilities in the area served by the entity within a reasonable time and at a charge which is in accordance with State law;
(IV) a description of the manner in which the applicant intends to use the loan requested in the application;
(V) a description of how the proposed project will be evaluated; and
(VI) such other information as the Secretary may reasonably require.
(B) Consideration of applications
(i) Review by Secretary
The Secretary shall-
(I) review each application submitted pursuant to subparagraph (A)(i);
(II) determine whether or not the application meets the requirements of subparagraph (A)(ii);
(III) approve each application which meets such requirements;
(IV) disapprove each application which fails to meet such requirements; and
(V) in the case of an approved application that proposes a project to be implemented in an eligible State (within the meaning of section 2008(b)(3) of this title), transmit the approved application to the review panel of the eligible State.
(ii) Review by certain State review panels
(I) In general
The review panel shall examine each application transmitted to the review panel pursuant to clause (i)(V) to determine the technical and economic adequacy and feasibility of the project described in the application and the likelihood that the project will succeed.
(II) Authority to obtain information from applicants
Each entity which submits an application for a loan under this subsection shall provide the review panel of any eligible State in which the partnership intends to implement the project described in the application such information as the review panel may reasonably request to assist in reviewing the application.
(III) Authority to request applicants to modify projects
The review panel may, before final consideration of an application of an entity for a loan under this subsection, request the entity to modify the project described in the application.
(iii) Ranking of applications
(I) In general
The review panel shall rank, pursuant to a written policy and criteria, the applications that the review panel receives during any fiscal year for a loan under this subsection, in an order which takes into account-
(aa) the results of the review conducted under clause (i);
(bb) the extent to which the projects described in the applications would promote any area plan (as defined in section 2008(b)(1) of this title) developed for the areas in which the projects are to be implemented; and
(cc) in the case of a project which would duplicate existing services, the reasons therefor.
(II) Grouping of applications
The review panel shall separate into 2 groups the applications for a loan under this subsection received by the review panel during a fiscal year. The 1st group shall consist of the applications received during the 1st 6 months of the fiscal year. The 2nd group shall consist of the applications received during the 2nd 6 months of the fiscal year.
(III) Competition among applications
The review panel shall consider each application in a group to be competing only with the other applications in the group.
(IV) Written policy and criteria
(aa) In general
Subject to subdivision (bb), the review panel shall develop the written policy and criteria to be used to rank applications, in the same manner as the review panel develops the written policy and criteria used for purposes of section 2008a(b)(3) of this title.
(bb) Prohibition against development or acquisition of telecommunications transmission facilities
The policy and criteria developed under subdivision (aa) shall require that the project described in an application not include the development or acquisition of telecommunications transmission facilities.
(iv) Transmittal of ranked applications
The review panel shall transmit to the State coordinator appointed pursuant to section 2008(b)(3)(A)(ii) of this title each list of applications ranked pursuant to clause (iii) of this subparagraph, in the same manner in which lists of applications ranked pursuant to section 2008a(b) of this title are transmitted to the State coordinator pursuant to section 2008a of this title. The State coordinator shall transmit to the Secretary each such list received by the State coordinator.
(C) Priority
The Secretary shall establish procedures to target loans under this subsection to the rural areas and applicants that demonstrate the need for such loans, taking into consideration-
(i) the relative needs of all applicants;
(ii) the needs of the affected rural areas;
(iii) the financial ability of the applicants, without such loans, to use telecommunications for the business purposes for which such loans may be made; and
(iv) the recommendations of the review panels for the eligible States (within the meaning of section 2008(b)(3) of this title) in which such areas are located.
(D) Report required if Secretary intends to fund projects other than as recommended by review panel
If the Secretary determines to provide loans under this subsection to projects in an eligible State (within the meaning of section 2008(b)(3) of this title) other than in the manner recommended by the review panel of the State, the Secretary-
(i) within 10 days after making such determination, shall submit to the review panel of the eligible State, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the reasons for providing loans to projects other than in the manner so recommended; and
(ii) shall not provide such loans before the end of the 7-day period beginning on the date the review panel and such committees have received such report.
(E) Monitoring of use of loans
The Secretary shall take such steps as may be necessary to ensure that loans provided under this subsection are used in accordance with the approved application therefor.
(3) Relationship to State law
This subsection shall not be construed to affect in any manner the applicability of the Communications Act of 1934 [47 U.S.C. 151 et seq.], the regulations and orders prescribed thereunder, or any State or local law relating to the regulation or provision of telecommunications facilities or services.
(4) Regulations
Not later than 120 days after November 28, 1990, the Secretary shall prescribe final regulations governing the loan program established under this subsection other than with respect to agency management and personnel, in accordance with the notice and comment rulemaking requirements described in section 553 of title 5, notwithstanding subsection (a)(2) of such section 553.
(5) Definitions
As used in this subsection:
(A) Review panel
The term "review panel" means, with respect to an eligible State (within the meaning of section 2008(b)(3) of this title), the rural economic development review panel of the State, as established pursuant to section 2008a of this title.
(B) Rural area
The term "rural area" has the meaning given such term in section 1926(a)(7) of this title for purposes of loans for essential community facilities under section 1926(a)(1) of this title.
(C) Telecommunications terminal equipment
The term "telecommunications terminal equipment" means telecommunications equipment (excluding telecommunications transmission facilities) that-
(i) interconnects with telecommunications transmission facilities; and
(ii) modifies, converts, encodes, or otherwise prepares signals to be transmitted through, or modifies, reconverts, or carries signals received from, the facilities.
(D) Telecommunications transmission facilities
The term "telecommunications transmission facilities" means facilities (other than telecommunications terminal equipment) that transmit, receive, or carry signals between the telecommunications terminal equipment at each end of a telecommunications circuit or path.
(6) Treatment of loan program as designated rural development program
For purposes of this chapter, the loan program established under this subsection shall, with respect to eligible States (within the meaning of section 2008(b)(3) of this title), be treated as a designated rural development program (within the meaning of section 2008(b)(2) of this title).
(7) Limitations on authorization of appropriations
(A) In general
For loans under this subsection, there are authorized to be appropriated to the Secretary $15,000,000 for each of fiscal years 1991, 1992, 1993, 1994, and 1995.
(B) Availability
Amounts appropriated pursuant to subparagraph (A) shall remain available until expended.
(j) Grants to broadcasting systems
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.
(Pub. L. 87 128, title III, §310B, as added Pub. L. 92 419, title I, §118(a), Aug. 30, 1972,
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,
For definition of "this chapter", referred to in subsecs. (d)(5), (7) and (i)(6), 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,
The Agricultural Subterminal Facilities Act of 1980, referred to in subsec. (e)(1)(A), (4)(A), (5), is Pub. L. 96 358, Sept. 25, 1980,
Title V of the Rural Development Act of 1972, referred to in subsec. (f)(2)(F)(i), is title V of Pub. L. 92 419, as added by Pub. L. 97 98, title XIV, §1444(a), Dec. 22, 1981,
The Communications Act of 1934, referred to in subsec. (i)(3), is act June 19, 1934, ch. 652,
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, §4(b), Sept. 13, 1982,
Amendments
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, §701(h)(1)(C), (D), substituted "this chapter" for "this Act".
Subsec. (f)(4). Pub. L. 102 237, §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, §701(c)(1), substituted "(iii) of this subparagraph" for "(ii) of this subsection".
Subsec. (i)(5)(A). Pub. L. 102 237, §701(c)(2), inserted closing parenthesis after "section 2008(b)(3) of this title".
Subsec. (j). Pub. L. 102 237, §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, §2388(b), substituted "paragraphs (1) and (3)" for "subsections (a) and (c)".
Subsec. (b). Pub. L. 101 624, §2325, designated existing provisions as par. (1) and added par. (2).
Subsec. (d). Pub. L. 101 624, §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, §2386, added par. (4) relating to grants to statewide private nonprofit public television systems.
Pub. L. 101 624, §2347(a), 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, §2347(a), added subsecs. (g) and (h).
Subsec. (i). Pub. L. 101 624, §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, §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, §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, §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, §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, §817, as added by Pub. L. 93 86, added pars. (4) to (6).
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 (§§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, §1323, Dec. 23, 1985,
"(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, §101(a) [title VI, §641], Oct. 18, 1986,
Limits on Grants for Fiscal Years 1982, 1983, and 1984
Pub. L. 97 35, title I, §120, Aug. 13, 1981,
Section Referred to in Other Sections
This section is referred to in sections 1926, 1927, 1929a, 1983a, 1992, 2008, 2008c, 6942, 6943, 6944 of this title.