(A) shall be made at or below market in-
terest rates; and 
(B) may be an interest free loan, at terms 
not to exceed the lesser of 30 years or the pro-
jected useful life (as determined by the State) 
of the project to be financed with the proceeds 
of the loan. 
(3) STRUCTURE OF LOAN.—A loan may be dis-
tributed from a revolving fund by a State to a pro-
gram participant in— 
(A) a lump sum; or 
(B) in multiple distributions over a period 
of years, if the State determines multiple dis-
tributions are necessary to carry out the 
project. 
(4) LOAN AMOUNT.—A State may not provide 
a loan to a program participant from the revolving 
fund of the State in a fiscal year that exceeds 10 
percent of the amount available from the fund for 
making distributions in that fiscal year. 
(5) PAYMENTS.—Annual principal and interest 
payments on a loan received from a revolving fund 
of a State shall commence not later than 1 year 
after the loan is disbursed to the program partici-
VerDate Sep 11 2014 
05:22 Feb 11, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H484.IH
H484
kjohnson on DSK7ZCZBW3PROD with $$_JOB
pant and all loans will be fully amortized upon the 
expiration of the term of the loan. 
(6) REVENUE
FOR
REPAYMENT.—A program 
participant shall establish a dedicated source of rev-
enue for repayment of a loan received from a revolv-
ing fund of a State. 
(7) CREDITING REVOLVING FUND.—A revolving 
fund of a State shall be credited with all payments 
of principal and interest on all loans made from the 
revolving fund. 
(g) ADMINISTRATION COSTS.—A State shall charge 
a program participant an administrative fee of not more 
than 4 percent of the loan amount. The State shall use 
the fees to administer the revolving fund and conduct ad-
ministration activities under this Act. 
(h) TECHNICAL ASSISTANCE.—The Secretary shall 
provide technical assistance to program participants to as-
sist with sourcing of food, food storage, and other oper-
ational requirements. 
(i) BANKRUPTCY.—In the case of the bankruptcy of 
a program participant, amounts owed on a loan from a 
revolving fund shall be afforded precedence over other 
debt. 
(j) CHANGE IN UNDERSERVED STATUS.—In the case 
of a community that qualified as underserved during a pe-
VerDate Sep 11 2014 
05:22 Feb 11, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H484.IH
H484
kjohnson on DSK7ZCZBW3PROD with $$_JOB
riod in which loans were made by a State pursuant to this 
section and no longer qualifies as underserved, recipients 
of loans under this section in such community— 
(1) shall not be eligible for further loans under 
this section; and 
(2) may not have their loan agreements altered. 
(k) GROCERY STORE EARNINGS.—Earnings of a non-
profit organization or municipally owned program partici-
pant that are attributable to a loan received from a revolv-
ing fund of a State shall be used for reinvestment into 
the program participant or to support the continuity of 
operations of the program participant. 
SEC. 3. CAPITALIZATION GRANTS TO FUND STATE REVOLV-
ING FUNDS. 
(a) ELIGIBILITY
OF STATE
FOR CAPITALIZATION 
GRANT.—To be eligible for a capitalization grant, a State 
shall— 
(1) establish a revolving fund that complies 
with the requirements of this Act; and 
(2) establish a process for applications and cri-
teria for making loans from the revolving fund, sub-
ject to the requirements in section 2(d). 
(b) UPON RECEIPT OF CAPITALIZATION GRANT.— 
Upon the receipt of a capitalization grant, a State shall 
VerDate Sep 11 2014 
05:22 Feb 11, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H484.IH
H484
kjohnson on DSK7ZCZBW3PROD with $$_JOB
deposit such capitalization grant into the revolving fund 
of the State. 
(c) DISTRIBUTION.—For a fiscal year, the Secretary 
shall apportion amounts made available for capitalization 
grants under this section among the States eligible under 
subsection (a) in the ratio that— 
(1) the population of underserved communities 
in each State eligible under subsection (a), bears to 
(2) the population of underserved communities 
in all States eligible under subsection (a). 
SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this Act $150,000,000 for fiscal year 2026. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) CAPITALIZATION GRANT.—The term ‘‘cap-
italization grant’’ means a grant made to a State 
under the program. 
(2) HEALTHFUL FOOD.—The term ‘‘healthful 
food’’ means food that reflects the most recent Die-
tary Guidelines for Americans. 
(3) GROCERY
STORE.—The term ‘‘grocery 
store’’ means a retail store that derives income pri-
marily from the sale of food for home preparation 
and consumption. 
VerDate Sep 11 2014 
05:22 Feb 11, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H484.IH
H484
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(4) PROGRAM.—The term ‘‘program’’ means 
the program described in section 2(a). 
(5) PROGRAM PARTICIPANT.—The term ‘‘pro-
gram participant’’ means an entity that has received 
a loan under the program. 
(6) REVOLVING
FUND.—The term ‘‘revolving 
fund’’ means a fund established by a State for use 
as a depository for a capitalization grant. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(8) STAPLE
FOOD.—The term ‘‘staple food’’ 
has the meaning given the term in section 243(b) of 
the of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 6953(b)). 
(9) STATE.—The term ‘‘State’’ means States of 
the Union, the District of Columbia, Puerto Rico, 
the Virgin Islands, Guam, American Samoa, and the 
Northern Mariana Islands. 
(10) UNDERSERVED
COMMUNITY.—The term 
‘‘underserved community’’ has the meaning given 
the term in section 310B(g)(9)(A) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1932(g)(9)(A)). 
Æ 
VerDate Sep 11 2014 
05:22 Feb 11, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H484.IH
H484
kjohnson on DSK7ZCZBW3PROD with $$_JOB