II 

117TH CONGRESS 

1ST SESSION S. 2023 

To provide loan forgiveness for certain borrowers of Department of 

Agriculture direct farm loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 10, 2021 

Mrs. GILLIBRAND (for herself, Mr. MERKLEY, Mr. SANDERS, Mr. BOOKER, 

and Mr. WYDEN) introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To provide loan forgiveness for certain borrowers of Department of Agriculture direct farm loans, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Relief for America’s 

5 Small Farmers Act’’. 

6 SEC. 2. DIRECT FARM LOAN FORGIVENESS. 

7 (a) DEFINITIONS.—In this section: 

8 (1) ELIGIBLE BORROWER.—The term ‘‘eligible 

9 borrower’’ means a borrower of an eligible loan that 


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1 is actively engaged in farming (within the meaning 

2 of section 1001A of the Food Security Act of 1985 

3 (7 U.S.C. 1308–1)) with respect to a farming oper4 ation— 

5 (A) for which the eligible loan was made; 

6 and 

7 (B) the average annual adjusted gross in8 come for the previous 5-year period of which is 

9 not more than $300,000. 

10 (2) ELIGIBLE LOAN.—The term ‘‘eligible loan’’ 

11 means a loan made before March 19, 2020, that 

12 is— 

13 (A) a direct farm ownership loan under 

14 subtitle A of the Consolidated Farm and Rural 

15 Development Act (7 U.S.C. 1922 et seq.); 

16 (B) a direct operating loan under subtitle 

17 B of the Consolidated Farm and Rural Devel18 opment Act (7 U.S.C. 1941 et seq.); or 

19 (C) an emergency loan under subtitle C of 

20 the Consolidated Farm and Rural Development 

21 Act (7 U.S.C. 1961 et seq.). 

22 (3) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Agriculture. 

24 (b) LOAN FORGIVENESS.— 


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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date on which the Secretary receives an applica3 tion under paragraph (2), subject to paragraphs (3) 

4 and (4), the Secretary shall cancel the obligation to 

5 repay the balance of principal and interest due as of 

6 the date of enactment of this Act on an eligible loan 

7 for the eligible borrower. 

8 (2) APPLICATIONS.—To be eligible for cancella9 tion under paragraph (1), not later than 1 year after 

10 the date of enactment of this Act, an eligible bor11 rower shall submit to the Secretary an application, 

12 which shall cover all eligible loans for which the eli13 gible borrower is seeking cancellation. 

14 (3) LIMITATIONS.—The total amount cancelled 

15 under paragraph (1) with respect to a farming oper16 ation shall be not more than $250,000. 

17 (4) CONDITION.—The cancellation of an obliga18 tion under paragraph (1) shall be subject to the con19 dition that the applicable eligible borrower shall con20 tinue to be actively engaged in farming (within the 

21 meaning of section 1001A of the Food Security Act 

22 of 1985 (7 U.S.C. 1308–1)) for the 2-year period 

23 beginning on the date on which the Secretary can24 cels the obligation under that paragraph. 


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1 (c) EFFECT.—An eligible borrower that receives can2 cellation of an obligation with respect to an eligible loan 

3 under subsection (b)(1) shall not be determined to be ineli4 gible for any loan under subtitle A, B, or C of the Consoli5 dated Farm and Rural Development Act (7 U.S.C. 1922 

6 et seq.) because of that cancellation. 

7 (d) TAXABILITY.—For purposes of the Internal Rev8 enue Code of 1986, any amount which (but for this sub9 section) would be includible in gross income of the eligible 

10 borrower by reason of forgiveness described in subsection 

11 (b) shall be excluded from gross income. 

12 (e) EMERGENCY FUNDING.— 

13 (1) IN GENERAL.—Out of amounts in the 

14 Treasury not otherwise appropriated, the Secretary 

15 of the Treasury shall transfer to the Secretary 

16 $10,000,000,000 to provide loan forgiveness under 

17 subsection (b), to remain available until expended. 

18 (2) RECEIPT AND ACCEPTANCE.—The Sec19 retary shall be entitled to receive, shall accept, and 

20 shall use to provide loan forgiveness under sub21 section (b) the amount transferred under paragraph 

22 (1), without further appropriation. 

23 (3) EMERGENCY DESIGNATION.— 

24 (A) IN GENERAL.—The amounts provided 

25 by this subsection are designated as an emerVerDate Sep 11 2014 07:01 Jun 23, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2023.IS S2023

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1 gency requirement pursuant to section 4(g) of 

2 the Statutory Pay-As-You-Go Act of 2010 (2 

3 U.S.C. 933(g)). 

4 (B) DESIGNATION IN SENATE.—In the 

5 Senate, this subsection is designated as an 

6 emergency requirement pursuant to section 

7 4112(a) of H. Con. Res. 71 (115th Congress), 

8 the concurrent resolution on the budget for fis9 cal year 2018. 

Æ 


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