Helping America’s Farmers Act

To provide for agricultural economic injury disaster loans, and for other purposes. 1. Short title This Act may be cited as the Helping America’s Farmers Act 2. Agricultural economic injury disaster loan (a) Definitions In this section: (1) Eligible entity The term eligible entity (A) a producer— (i) of horticulture, nursery crops, floriculture, non-specialty crops, wool, livestock, dairy, aquaculture, or specialty crops; or (ii) engaged in the production of food and fiber; or (B) a farmer or rancher. (2) Large eligible entity The term large eligible entity (3) Secretary The term Secretary (4) Small eligible entity The term small eligible entity (b) Agricultural economic injury disaster loan program (1) In general The Secretary shall carry out a program to make loans under this subsection to small eligible entities for the purposes described in paragraph (3). (2) Terms of loans (A) Amount of loan In carrying out this subsection, the Secretary shall make loans to small eligible entities in an amount less than or equal to $2,000,000. (B) Interest rate A loan under subparagraph (A) shall have an interest rate equal to zero percent. (C) Repayment The Secretary shall establish the repayment terms with respect to each loan to a small eligible entity under this subsection, except that such repayment may not— (i) begin before the date that is 1 year after the date on which such loan is made to such small eligible entity; and (ii) be for a period of less than 10 years or a period of greater than 15 years; and (D) Waiver of certain requirements With respect to a loan made under this subsection in response to an economic disaster, the Secretary shall waive— (i) any rules related the personal guarantee on advances and loans of not more than $200,000 for all applicants; (ii) any requirement that the small eligible entity exhaust other loan options before applying for a loan under this subsection; and (iii) any requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020. (E) Priority In making loans under this subsection the Secretary shall give priority to— (i) small eligible entities located in States most impacted by an economic disaster, as determined by the Secretary; (ii) minority, veteran, and women farmers and ranchers; and (iii) such other small eligible entities as the Secretary determines appropriate. (3) Use of funds A small eligible entity that receives a loan under this subsection shall use the loan funds to— (A) provide paid sick leave to employees unable to work due to the direct effect of an economic disaster; (B) maintain payroll to retain employees during business disruptions or substantial slowdowns; (C) meet increased costs to obtain materials unavailable from the applicant's original source due to interrupted supply chains; (D) make rent or mortgage payments; (E) purchase personal protective equipment; and (F) repay obligations that cannot be met due to revenue losses. (4) Forgiveness A small eligible entity shall be eligible for forgiveness of indebtedness on a loan under this subsection in an amount determined by the Secretary based on the losses of the small eligible entity— (A) due to commodity price decreases during an economic disaster; or (B) revenue loss due to an economic disaster, including from— (i) canceled purchasing contracts or agreements with schools, institutions, food hubs, and restaurants; (ii) loss of recurring deliveries of farm products to schools, institutions, food hubs, and restaurants; or (iii) any other unexpected source during such economic disaster. (c) Loan guarantees The Secretary may guarantee a loan made by lenders approved by the Farm Service Agency to large eligible entities if— (1) such loan— (A) is for the purposes described in subsection (b)(3); (B) is in an amount greater than $2,000,000; (C) has an interest rate equal to or less than 1 percent; and (D) has a repayment term that— (i) begins after the date that is 1 year after the date on which such loan is made an eligible entity; and (ii) is for a period of not less than 15 years and not greater than 20 years; and (2) the lender making such loan offers forgiveness of indebtedness on such loan under such terms as the Secretary determines are commensurate with the loan forgiveness under subsection (b)(4). (d) Approval and Ability To Repay for Small Dollar Loans With respect to a loan made under subsection (b) in response to an economic disaster, the Secretary may— (1) approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or (2) use alternative appropriate methods to determine an applicant's ability to repay. (e) Emergency grant (1) In general An eligible entity that applies for a loan under subsection (b) or a loan guarantee under subsection (c) in response to an economic disaster may request that the Secretary provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Secretary receives an application from such applicant. (2) Verification Before disbursing amounts under this subsection, the Secretary shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code. (3) Amount The amount of an advance provided under this subsection shall be not less than $20,000. (4) Use of funds An advance provided under this subsection may be used to address any allowable purpose for a loan made under subsection (b) or a loan guarantee made under subsection (c). (5) Repayment An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under subsection (b) or a loan guarantee under subsection (c). (f) Other benefits Receipt of a grant, loan, or loan guarantee under this section shall not be construed as to prohibit receipt of any Federal grant, loan, or other aid. (g) Taxability For purposes of the Internal Revenue Code of 1986— (1) any amount which would be includible in gross income of the eligible entity by reason of forgiveness described in this paragraph shall be excluded from gross income; and (2) any amount received under this section shall be excluded from gross income. (h) Funding There is hereby appropriated, out of any amounts in the Treasury not otherwise appropriated— (1) $6,000,000,000, to remain available until September 30, 2021, to make loans to small eligible entities under this section; (2) $6,000,000,000, to remain available until September 30, 2021, to make loan guarantees to large eligible entities under this section; (3) $4,000,000,000, to remain available until September 30, 2021, to make grants under subsection (e) to small eligible entities; and (4) $4,000,000,000, to remain available until September 30, 2021, to make grants under subsection (e) to large eligible entities. 3. Training for loan servicers There is hereby appropriated, out of any amounts in the Treasury not otherwise appropriated, $300,000,000, to the Secretary of Agriculture to carry out a training program to provide Farm Service Agency staff with appropriate training relating to economic injury loan processing and servicing under section 2.

Summary: Helping America's Farmers Act This bill provides financial assistance to certain agricultural entities. Specifically, the bill directs the Farm Service Agency (FSA) of the Department of Agriculture (USDA) to carry out a program to provide economic disaster loans to certain agricultural entities with an adjusted gross income of less than or equal to $500,000. Under the program, such entities are eligible for zero-interest loans of up to $2 million and may seek loan forgiveness based on demonstrated economic hardship.In making loans, priority must be given to (1) entities located in states most impacted by an economic disaster; and (2) minority, veteran, and women farmers and ranchers. The FSA may also guarantee a loan to certain agricultural entities with an adjusted gross income of greater than $500,000 if such loan meets certain requirements. Entities that apply for a loan or loan guarantee may request that the FSA provide an emergency grant of at least $20,000 upon application. The bill also provides funding for USDA to carry out a program to provide FSA staff with appropriate training relating to economic injury loan processing and servicing.