II 

116TH CONGRESS 

2D SESSION S. 4354 

To require the Secretary of Agriculture to make recourse loans available 

to commercial processors of dairy products during the COVID–19 pandemic, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2020 

Ms. SMITH introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To require the Secretary of Agriculture to make recourse 

loans available to commercial processors of dairy products during the COVID–19 pandemic, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. RECOURSE LOAN PROGRAM FOR COMMERCIAL 

4 PROCESSORS OF DAIRY PRODUCTS. 

5 (a) DEFINITIONS.—In this section: 

6 (1) COVID–19.—The term ‘‘COVID–19’’ 

7 means the disease caused by SARS–CoV–2, or any 


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1 viral strain mutating therefrom with pandemic po2 tential. 

3 (2) ELIGIBLE DAIRY PRODUCT.—The term ‘‘eli4 gible dairy product’’ means any dairy product, 

5 whether in base commodity or finished product form. 

6 (3) QUALIFIED APPLICANT.—The term ‘‘quali7 fied applicant’’ means any commercial processor, 

8 packager, or merchandiser of eligible dairy products 

9 that is impacted by COVID–19. 

10 (4) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Agriculture. 

12 (b) AVAILABILITY OF LOANS.—The Secretary shall 

13 make recourse loans available to qualified applicants dur14 ing the COVID–19 pandemic. 

15 (c) AMOUNT OF LOANS.— 

16 (1) IN GENERAL.—A recourse loan made under 

17 this section shall be provided to qualified applicants 

18 up to the value of the eligible dairy product inven19 tory of the applicant, as determined by the Secretary 

20 and consistent with subsection (d). 

21 (2) VALUATION.—For purposes of making re22 course loans under this section, the Secretary shall 

23 conduct eligible dairy product valuations to provide, 

24 to the maximum extent practicable, funds to con25 tinue the operations of qualified applicants. 


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1 (d) INVENTORY USED AS COLLATERAL.—Eligible 

2 dairy product inventory used as collateral for the recourse 

3 loan program under this section shall be pledged on a ro4 tating basis to prevent spoilage of perishable products. 

5 (e) TERM OF LOANS.—A recourse loan under this 

6 section may be made for a period as determined by the 

7 Secretary, except that no recourse loan under this section 

8 may end after the date that is 24 months after the date 

9 of enactment of this section. 

10 (f) FUNDING.—Out of any amounts in the Treasury 

11 not otherwise appropriated, there is appropriated to carry 

12 out this section $500,000,000. 

13 (g) EMERGENCY DESIGNATION.— 

14 (1) IN GENERAL.—The amounts provided by 

15 this Act are designated as an emergency require16 ment pursuant to section 4(g) of the Statutory Pay17 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

18 (2) DESIGNATION IN SENATE.—In the Senate, 

19 this Act is designated as an emergency requirement 

20 pursuant to section 4112(a) of H. Con. Res. 71 

21 (115th Congress), the concurrent resolution on the 

22 budget for fiscal year 2018. 

Æ 


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