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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2023 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Relief for America's Small Farmers 
Act''.

SEC. 2. DIRECT FARM LOAN FORGIVENESS.

    (a) Definitions.--In this section:
            (1) Eligible borrower.--The term ``eligible borrower'' 
        means a borrower of an eligible loan that is actively engaged 
        in farming (within the meaning of section 1001A of the Food 
        Security Act of 1985 (7 U.S.C. 1308-1)) with respect to a 
        farming operation--
                    (A) for which the eligible loan was made; and
                    (B) the average annual adjusted gross income for 
                the previous 5-year period of which is not more than 
                $300,000.
            (2) Eligible loan.--The term ``eligible loan'' means a loan 
        made before March 19, 2020, that is--
                    (A) a direct farm ownership loan under subtitle A 
                of the Consolidated Farm and Rural Development Act (7 
                U.S.C. 1922 et seq.);
                    (B) a direct operating loan under subtitle B of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1941 et seq.); or
                    (C) an emergency loan under subtitle C of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1961 et seq.).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Loan Forgiveness.--
            (1) In general.--Not later than 1 year after the date on 
        which the Secretary receives an application under paragraph 
        (2), subject to paragraphs (3) and (4), the Secretary shall 
        cancel the obligation to repay the balance of principal and 
        interest due as of the date of enactment of this Act on an 
        eligible loan for the eligible borrower.
            (2) Applications.--To be eligible for cancellation under 
        paragraph (1), not later than 1 year after the date of 
        enactment of this Act, an eligible borrower shall submit to the 
        Secretary an application, which shall cover all eligible loans 
        for which the eligible borrower is seeking cancellation.
            (3) Limitations.--The total amount cancelled under 
        paragraph (1) with respect to a farming operation shall be not 
        more than $250,000.
            (4) Condition.--The cancellation of an obligation under 
        paragraph (1) shall be subject to the condition that the 
        applicable eligible borrower shall continue to be actively 
        engaged in farming (within the meaning of section 1001A of the 
        Food Security Act of 1985 (7 U.S.C. 1308-1)) for the 2-year 
        period beginning on the date on which the Secretary cancels the 
        obligation under that paragraph.
    (c) Effect.--An eligible borrower that receives cancellation of an 
obligation with respect to an eligible loan under subsection (b)(1) 
shall not be determined to be ineligible for any loan under subtitle A, 
B, or C of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1922 et seq.) because of that cancellation.
    (d) Taxability.--For purposes of the Internal Revenue Code of 1986, 
any amount which (but for this subsection) would be includible in gross 
income of the eligible borrower by reason of forgiveness described in 
subsection (b) shall be excluded from gross income.
    (e) Emergency Funding.--
            (1) In general.--Out of amounts in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary $10,000,000,000 to provide loan 
        forgiveness under subsection (b), to remain available until 
        expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to provide 
        loan forgiveness under subsection (b) the amount transferred 
        under paragraph (1), without further appropriation.
            (3) Emergency designation.--
                    (A) In general.--The amounts provided by this 
                subsection are designated as an emergency requirement 
                pursuant to section 4(g) of the Statutory Pay-As-You-Go 
                Act of 2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                subsection is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.
                                 <all>
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