538 
(or through the payment of the loan value of the assets, 
if the loan value is greater than the liquidation value) de-
scribed in subsection (c)(2)(A)(ii). 
‘‘(m) LIFETIME LIMITATION ON DEBT FORGIVENESS 
PER BORROWER.—The Secretary may provide each bor-
rower not more than $300,000 in debt forgiveness under 
this section. 
‘‘SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS 
FROM CERTAIN AGRICULTURAL LOAN OBLI-
GATIONS. 
‘‘(a) DEFINITION OF MOBILIZED MILITARY RESERV-
IST.—In this section, the term ‘mobilized military reserv-
ist’ means an individual who— 
‘‘(1) is on active duty under section 688, 
12301(a), 12301(g), 12302, 12304, 12306, or 
12406, or chapter 15 of title 10, United States 
Code, or any other provision of law during a war or 
during a national emergency declared by the Presi-
dent or Congress, regardless of the location at which 
the active duty service is performed; or 
‘‘(2) in the case of a member of the National 
Guard, is on full-time National Guard duty (as de-
fined in section 101(d)(5) of title 10, United States 
Code) under a call to active service authorized by 
the President or the Secretary of Defense for a pe-
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539 
riod of more than 30 consecutive days under section 
502(f) of title 32, United States Code, for purposes 
of responding to a national emergency declared by 
the President and supported by Federal funds. 
‘‘(b) FORGIVENESS OF INTEREST PAYMENTS DUE 
WHILE BORROWER IS A MOBILIZED MILITARY RESERV-
IST.—Any requirement that a borrower of a direct loan 
made under this subtitle make any interest payment on 
the loan that would otherwise be required to be made while 
the borrower is a mobilized military reservist is rescinded. 
‘‘(c) DEFERRAL
OF PRINCIPAL PAYMENTS DUE 
WHILE OR AFTER BORROWER IS A MOBILIZED MILITARY 
RESERVIST.—The due date of any payment of principal 
on a direct loan made to a borrower under this subtitle 
that would otherwise be required to be made while or after 
the borrower is a mobilized military reservist is deferred 
for a period equal in length to the period for which the 
borrower is a mobilized military reservist. 
‘‘(d) NONACCRUAL OF INTEREST.—Interest on a di-
rect loan made to a borrower described in this section shall 
not accrue during the period the borrower is a mobilized 
military reservist. 
‘‘(e) BORROWER NOT CONSIDERED TO BE DELIN-
QUENT OR RECEIVING DEBT FORGIVENESS.—Notwith-
standing section 3425 or any other provision of this title, 
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a borrower who receives assistance under this section shall 
not, as a result of the assistance, be considered to be delin-
quent or receiving debt forgiveness for purposes of receiv-
ing a direct or guaranteed loan under this subtitle. 
‘‘SEC. 3413. INTEREST RATE REDUCTION PROGRAM. 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish and carry out in accordance with this sec-
tion an interest rate reduction program for any loan guar-
anteed under this subtitle. 
‘‘(b) ENTERING INTO CONTRACTS.—The Secretary 
shall enter into a contract with, and make payments to, 
an institution to reduce, during the term of the contract, 
the interest rate paid by the borrower on the guaranteed 
loan if— 
‘‘(1) the borrower— 
‘‘(A) is unable to obtain credit elsewhere; 
‘‘(B) is unable to make payments on the 
loan in a timely manner; and 
‘‘(C) during the 24-month period beginning 
on the date on which the contract is entered 
into, has a total estimated cash income, includ-
ing all farm and nonfarm income, that will 
equal or exceed the total estimated cash ex-
penses, including all farm and nonfarm ex-
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penses, to be incurred by the borrower during 
the period; and 
‘‘(2) during the term of the contract, the lender 
reduces the annual rate of interest payable on the 
loan by a minimum percentage specified in the con-
tract. 
‘‘(c) PAYMENTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
in return for a contract entered into by a lender 
under subsection (b) for the reduction of the interest 
rate paid on a loan, the Secretary shall make pay-
ments to the lender in an amount equal to not more 
than 100 percent of the cost of reducing the annual 
rate of interest payable on the loan. 
‘‘(2) LIMITATION.—Payments under paragraph 
(1) may not exceed the cost of reducing the rate by 
more than 400 basis points. 
‘‘(d) TERM.—The term of a contract entered into 
under this section to reduce the interest rate on a guaran-
teed loan may not exceed the outstanding term of the loan. 
‘‘(e) 
CONDITION
ON
FORECLOSURE.—Notwith-
standing any other law, any contract of guarantee on a 
farm loan entered into under this subtitle shall contain 
a condition that the lender of the loan may not initiate 
a foreclosure action on the loan until 60 days after a de-
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termination is made with respect to the eligibility of the 
borrower to participate in the program established under 
this section. 
‘‘SEC. 3414. HOMESTEAD PROPERTY. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Small Busi-
ness Administration. 
‘‘(2) BORROWER-OWNER.—The term ‘borrower- 
owner’ means— 
‘‘(A) a borrower-owner of a loan made or 
guaranteed by the Secretary or the Adminis-
trator who meets the eligibility requirements of 
subsection (c)(1); or 
‘‘(B) in a case in which an owner of home-
stead property pledged the property to secure 
the loan and the owner is different than the 
borrower, the owner. 
‘‘(3) FARM PROGRAM LOAN.—The term ‘farm 
program loan’ means a loan made by the Adminis-
trator under the Small Business Act (15 U.S.C. 631 
et seq.) for any of the purposes authorized for loans 
under chapter 1 or 2. 
‘‘(4) 
HOMESTEAD
PROPERTY.—The 
term 
‘homestead property’ means— 
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