354 
section, the Secretary shall, to the maximum extent 
practicable, ensure— 
(A) geographical diversity; 
(B) that at least half of the demonstration 
programs are completed in collaboration with 
school food authorities with small annual com-
modity entitlements, as determined by the Sec-
retary; 
(C) that at least half of the demonstration 
programs are completed in rural or tribal com-
munities; 
(D) equitable treatment of school food au-
thorities with a high percentage of students eligi-
ble for free or reduced price lunches, as deter-
mined by the Secretary; and 
(E) that at least one of the demonstration 
programs is completed on a military installation 
as defined in section 2687(e)(1) of title 10, 
United States Code. 
SEC. 4206. REVIEW OF PUBLIC HEALTH BENEFITS OF WHITE 
POTATOES. 
The Secretary shall conduct a review of the economic 
and public health benefits of white potatoes on low-income 
families who are determined to be at nutritional risk. Not 
later than 1 year after the date of the enactment of this 
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Act, the Secretary shall report the findings of this review 
to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
SEC. 4207. HEALTHY FOOD FINANCING INITIATIVE. 
(a) IN GENERAL.—Subtitle D of title II of the Depart-
ment of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6951 et seq.) is amended by adding at the end the following: 
‘‘SEC. 242. HEALTHY FOOD FINANCING INITIATIVE. 
‘‘(a) PURPOSE.—The purpose of this section is to en-
hance the authorities of the Secretary to support efforts to 
provide access to healthy food by establishing an initiative 
to improve access to healthy foods in underserved areas, to 
create and preserve quality jobs, and to revitalize low-in-
come communities by providing loans and grants to eligible 
fresh, healthy food retailers to overcome the higher costs and 
initial barriers to entry in underserved areas. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘community development fi-
nancial institution’ has the meaning given the term 
in section 103 of the Community Development Bank-
ing and Financial Institutions Act of 1994 (12 
U.S.C. 4702). 
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‘‘(2) INITIATIVE.—The term ‘Initiative’ means 
the Healthy Food Financing Initiative established 
under subsection (c)(1). 
‘‘(3) NATIONAL FUND MANAGER.—The term ‘na-
tional fund manager’ means a community develop-
ment financial institution that is— 
‘‘(A) in existence on the date of enactment 
of this section; and 
‘‘(B) certified by the Community Develop-
ment Financial Institution Fund of the Depart-
ment of Treasury to manage the Initiative for 
purposes of— 
‘‘(i) raising private capital; 
‘‘(ii) providing financial and technical 
assistance to partnerships; and 
‘‘(iii) funding eligible projects to at-
tract fresh, healthy food retailers to under-
served areas, in accordance with this sec-
tion. 
‘‘(4) PARTNERSHIP.—The term ‘partnership’ 
means a regional, State, or local public-private part-
nership that— 
‘‘(A) is organized to improve access to fresh, 
healthy foods; 
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‘‘(B) provides financial and technical as-
sistance to eligible projects; and 
‘‘(C) meets such other criteria as the Sec-
retary may establish. 
‘‘(5) PERISHABLE FOOD.—The term ‘perishable 
food’ means a staple food that is fresh, refrigerated, 
or frozen. 
‘‘(6) QUALITY
JOB.—The term ‘quality job’ 
means a job that provides wages and other benefits 
comparable to, or better than, similar positions in ex-
isting businesses of similar size in similar local 
economies. 
‘‘(7) STAPLE FOOD.— 
‘‘(A) IN GENERAL.—The term ‘staple food’ 
means food that is a basic dietary item. 
‘‘(B) INCLUSIONS.—The term ‘staple food’ 
includes— 
‘‘(i) bread; 
‘‘(ii) flour; 
‘‘(iii) fruits; 
‘‘(iv) vegetables; and 
‘‘(v) meat. 
‘‘(c) INITIATIVE.— 
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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an initiative to achieve the purpose described 
in subsection (a) in accordance with this subsection. 
‘‘(2) IMPLEMENTATION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN GENERAL.—In carrying out the 
Initiative, the Secretary shall provide fund-
ing to entities with eligible projects, as de-
scribed in subparagraph (B), subject to the 
priorities described in subparagraph (C). 
‘‘(ii) USE OF FUNDS.—Funds provided 
to an entity pursuant to clause (i) shall be 
used— 
‘‘(I) to create revolving loan pools 
of capital or other products to provide 
loans to finance eligible projects or 
partnerships; 
‘‘(II) to provide grants for eligible 
projects or partnerships; 
‘‘(III) to provide technical assist-
ance to funded projects and entities 
seeking Initiative funding; and 
‘‘(IV) to cover administrative ex-
penses of the national fund manager in 
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an amount not to exceed 10 percent of 
the Federal funds provided. 
‘‘(B) ELIGIBLE PROJECTS.—Subject to the 
approval of the Secretary, the national fund 
manager shall establish eligibility criteria for 
projects under the Initiative, which shall include 
the existence or planned execution of agree-
ments— 
‘‘(i) to expand or preserve the avail-
ability of staple foods in underserved areas 
with moderate- and low-income populations 
by maintaining or increasing the number of 
retail outlets that offer an assortment of 
perishable food and staple food items, as de-
termined by the Secretary, in those areas; 
and 
‘‘(ii) to accept benefits under the sup-
plemental nutrition assistance program es-
tablished under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.). 
‘‘(C) PRIORITIES.—In carrying out the Ini-
tiative, priority shall be given to projects that— 
‘‘(i) are located in severely distressed 
low-income communities, as defined by the 
Community Development Financial Institu-
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tions Fund of the Department of Treasury; 
and 
‘‘(ii) include 1 or more of the following 
characteristics: 
‘‘(I) The project will create or re-
tain quality jobs for low-income resi-
dents in the community. 
‘‘(II) The project supports re-
gional food systems and locally grown 
foods, to the maximum extent prac-
ticable. 
‘‘(III) In areas served by public 
transit, the project is accessible by pub-
lic transit. 
‘‘(IV) The project involves women- 
or minority-owned businesses. 
‘‘(V) The project receives funding 
from other sources, including other 
Federal agencies. 
‘‘(VI) The project otherwise ad-
vances the purpose of this section, as 
determined by the Secretary. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry out 
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this section $125,000,000, to remain available until ex-
pended.’’. 
(b) CONFORMING AMENDMENT.—Section 296(b) of the 
Department of Agriculture Reorganization Act of 1994 (7 
U.S.C. 7014(b)), as amended by the preceding provisions 
of this Act, is further amended, by adding at the end the 
following: 
‘‘(9) the authority of the Secretary to establish 
and carry out the Health Food Financing Initiative 
under section 242;’’. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS. 
(a) IN GENERAL.—Section 302(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1922(a)) is 
amended— 
(1) by striking ‘‘(a) IN GENERAL.—The’’ and in-
serting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 
(2) in the 1st sentence, by inserting after ‘‘lim-
ited liability companies’’ the following: ‘‘, and such 
other legal entities as the Secretary deems appro-
priate,’’; 
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(3) in the 2nd sentence, by redesignating clauses 
(1) through (4) as clauses (A) through (D), respec-
tively; 
(4) in each of the 2nd and 3rd sentences, by 
striking ‘‘and limited liability companies’’ each place 
it appears and inserting ‘‘limited liability companies, 
and such other legal entities’’; 
(5) in the 3rd sentence, by striking ‘‘(3)’’ and 
‘‘(4)’’ and inserting ‘‘(C)’’ and ‘‘(D)’’, respectively; 
and 
(6) by adding at the end the following: 
‘‘(2) SPECIAL DEEMING RULES.— 
‘‘(A) ELIGIBILITY OF CERTAIN OPERATING- 
ONLY ENTITIES.—An entity that is or will be-
come only the operator of a family farm is 
deemed to meet the owner-operator requirements 
of paragraph (1) if the individuals that are the 
owners of the family farm own more than 50 
percent (or such other percentage as the Sec-
retary determines is appropriate) of the entity. 
‘‘(B) ELIGIBILITY OF CERTAIN EMBEDDED 
ENTITIES.—An entity that is an owner-operator 
described in paragraph (1), or an operator de-
scribed in subparagraph (A) of this paragraph 
that is owned, in whole or in part, by other enti-
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ties, is deemed to meet the direct ownership re-
quirement imposed under paragraph (1) if at 
least 75 percent of the ownership interests of each 
embedded entity of such entity is owned directly 
or indirectly by the individuals that own the 
family farm.’’. 
(b) DIRECT FARM OWNERSHIP EXPERIENCE RE-
QUIREMENT.—Section 302(b)(1) of such Act (7 U.S.C. 
1922(b)(1)) is amended by inserting ‘‘or has other accept-
able experience for a period of time, as determined by the 
Secretary,’’ after ‘‘3 years’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 304(c)(2) of such Act (7 U.S.C. 
1924(c)(2)) by striking ‘‘paragraphs (1) and (2) of 
section 302(a)’’ and inserting ‘‘clauses (A) and (B) of 
section 302(a)(1)’’. 
(2) Section 310D of such Act (7 U.S.C. 1934) is 
amended— 
(A) by inserting after ‘‘partnership’’ the fol-
lowing: ‘‘, or such other legal entities as the Sec-
retary deems appropriate,’’; and 
(B) by striking ‘‘or partners’’ each place it 
appears and inserting ‘‘partners, or owners’’. 
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364 
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE 
PROGRAM. 
(a) ELIGIBILITY.—Section 304(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1924(c)) is 
amended by inserting after ‘‘limited liability companies’’ 
the following: ‘‘, or such other legal entities as the Secretary 
deems appropriate,’’. 
(b) LIMITATION ON LOAN GUARANTEE AMOUNT.—Sec-
tion 304(e) of such Act (7 U.S.C. 1924(e)) is amended by 
striking ‘‘75 percent’’ and inserting ‘‘90 percent’’. 
(c) EXTENSION OF PROGRAM.—Section 304(h) of such 
Act (7 U.S.C. 1924(h)) is amended by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
SEC. 5003. DOWN PAYMENT LOAN PROGRAM. 
(a) IN GENERAL.—Section 310E(b)(1)(C) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1935(b)(1)(C)) is amended by striking ‘‘$500,000’’ and in-
serting ‘‘$667,000’’. 
(b) TECHNICAL CORRECTION.—Section 310E(b) of 
such Act (7 U.S.C. 1935(b)) is amended by striking the 2nd 
paragraph (2). 
SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL 
REQUIREMENT. 
Section 307 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1927) is amended by striking sub-
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section (d) and redesignating subsection (e) as subsection 
(d). 
Subtitle B—Operating Loans 
SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS. 
Section 311(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(a)) is amended— 
(1) by striking ‘‘(a) IN GENERAL.—The’’ and in-
serting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 
(2) in the 1st sentence, by inserting after ‘‘lim-
ited liability companies’’ the following: ‘‘, and such 
other legal entities as the Secretary deems appro-
priate,’’; 
(3) in the 2nd sentence, by redesignating clauses 
(1) through (4) as clauses (A) through (D), respec-
tively; 
(4) in each of the 2nd and 3rd sentences, by 
striking ‘‘and limited liability companies’’ each place 
it appears and inserting ‘‘limited liability companies, 
and such other legal entities’’; 
(5) in the 3rd sentence, by striking ‘‘(3)’’ and 
‘‘(4)’’ and inserting ‘‘(C)’’ and ‘‘(D)’’, respectively; 
and 
(6) by adding at the end the following: 
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‘‘(2) SPECIAL DEEMING RULE.—An entity that is 
an operator described in paragraph (1) that is owned, 
in whole or in part, by other entities, is deemed to 
meet the direct ownership requirement imposed under 
paragraph (1) if at least 75 percent of the ownership 
interests of each embedded entity of such entity is 
owned directly or indirectly by the individuals that 
own the family farm.’’. 
SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIRE-
MENT FOR OPERATING LOANS TO YOUTH. 
Section 311(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)(1)) is amended by strik-
ing ‘‘who are rural residents’’. 
SEC. 5103. AUTHORITY TO WAIVE PERSONAL LIABILITY FOR 
YOUTH LOANS DUE TO CIRCUMSTANCES BE-
YOND BORROWER CONTROL. 
Section 311(b) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)) is amended by adding 
at the end the following: 
‘‘(5) The Secretary may, on a case by case basis, waive 
the personal liability of a borrower for a loan made under 
this subsection if any default on the loan was due to cir-
cumstances beyond the control of the borrower.’’. 
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367 
SEC. 5104. MICROLOANS. 
(a) IN GENERAL.—Section 313 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1943) is 
amended by adding at the end the following: 
‘‘(c) MICROLOANS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary may establish a program to make or guar-
antee microloans. 
‘‘(2) LIMITATION.—The Secretary shall not make 
or guarantee a microloan under this subsection that 
exceeds $35,000 or that would cause the total prin-
cipal indebtedness outstanding at any 1 time for 
microloans made under this chapter to any 1 bor-
rower to exceed $70,000. 
‘‘(3) APPLICATIONS.—To the maximum extent 
practicable, the Secretary shall limit the administra-
tive burdens and streamline the application and ap-
proval process for microloans under this subsection. 
‘‘(4) COOPERATIVE LENDING PROJECTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary may contract with com-
munity-based and nongovernmental organiza-
tions, State entities, or other intermediaries, as 
the Secretary determines appropriate— 
‘‘(i) to make or guarantee a microloan 
under this subsection; and 
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‘‘(ii) to provide business, financial, 
marketing, and credit management services 
to borrowers. 
‘‘(B) REQUIREMENTS.—Before contracting 
with an entity described in subparagraph (A), 
the Secretary— 
‘‘(i) shall review and approve— 
‘‘(I) the loan loss reserve fund for 
microloans established by the entity; 
and 
‘‘(II) the underwriting standards 
for microloans of the entity; and 
‘‘(ii) establish such other requirements 
for contracting with the entity as the Sec-
retary determines necessary.’’. 
(b) 
EXCEPTIONS
FOR
DIRECT
LOANS.—Section 
311(c)(2) of such Act (7 U.S.C. 1941(c)(2)) is amended to 
read as follows: 
‘‘(2) EXCEPTIONS.—In this subsection, the term 
‘direct operating loan’ shall not include— 
‘‘(A) a loan made to a youth under sub-
section (b); or 
‘‘(B) a microloan made to a beginning 
farmer or rancher or a veteran farmer or ranch-
er (as defined in section 2501(e) of the Food, Ag-
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369 
riculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279(e)).’’. 
(c) Section 312(a) of such Act (7 U.S.C. 1942(a)) is 
amended by inserting ‘‘(including a microloan, as defined 
by the Secretary)’’ after ‘‘A direct loan’’. 
(d) Section 316(a)(2) of such Act (7 U.S.C. 1946(a)(2)) 
is amended by inserting ‘‘a microloan to a beginning farm-
er or rancher or veteran farmer or rancher (as defined in 
section 2501(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(e)) or’’ after ‘‘The interest 
rate on’’. 
Subtitle C—Emergency Loans 
SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS. 
Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended— 
(1) by striking ‘‘owner-operators (in the case of 
loans for a purpose under subtitle A) or operators (in 
the case of loans for a purpose under subtitle B)’’ each 
place it appears and inserting ‘‘(in the case of farm 
ownership loans in accordance with subtitle A) 
owner-operators or operators, or (in the case of loans 
for a purpose under subtitle B) operators’’; 
(2) by inserting after ‘‘limited liability compa-
nies’’ the 1st place it appears the following: ‘‘, or such 
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370 
other legal entities as the Secretary deems appro-
priate’’; and 
(3) by inserting after ‘‘limited liability compa-
nies’’ the 2nd place it appears the following: ‘‘, or 
other legal entities’’; 
(4) by striking ‘‘and limited liability compa-
nies,’’ and inserting ‘‘limited liability companies, and 
such other legal entities’’; 
(5) by striking ‘‘ownership and operator’’ and 
inserting ‘‘ownership or operator’’; and 
(6) by adding at the end the following: ‘‘An enti-
ty that is an owner-operator or operator described in 
this subsection is deemed to meet the direct ownership 
requirement imposed under this subsection if at least 
75 percent of the ownership interests of each embedded 
entity of such entity is owned directly or indirectly 
by the individuals that own the family farm.’’. 
Subtitle D—Administrative 
Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
Section 333B(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b(h)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
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371 
SEC. 5302. ELIGIBLE BEGINNING FARMERS AND RANCHERS. 
(a) 
CONFORMING
AMENDMENTS
RELATING
TO 
CHANGES IN ELIGIBILITY RULES.—Section 343(a)(11) of 
such Act (7 U.S.C. 1991(a)(11)) is amended— 
(1) by inserting after ‘‘joint operation,’’ the 1st 
place it appears the following: ‘‘or such other legal en-
tity as the Secretary deems appropriate,’’; 
(2) by striking ‘‘or joint operators’’ each place it 
appears and inserting ‘‘joint operators, or owners’’; 
and 
(3) by inserting after ‘‘joint operation,’’ the 2nd 
and 3rd place it appears the following: ‘‘or such other 
legal entity,’’. 
(b) MODIFICATION OF ACREAGE OWNERSHIP LIMITA-
TION.—Section 343(a)(11)(F) of such Act (7 U.S.C. 
1991(a)(11)(F)) is amended by striking ‘‘median acreage’’ 
and inserting ‘‘average acreage’’. 
SEC. 5303. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(1)) is amended in the 
matter preceding subparagraph (A) by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
SEC. 5304. PRIORITY FOR PARTICIPATION LOANS. 
Section 346(b)(2)(A)(i) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(2)(A)(i)) is 
amended by adding at the end the following: 
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‘‘(III) PRIORITY.—In order to 
maximize the number of borrowers 
served under this clause, the Sec-
retary— 
‘‘(aa) shall give priority to 
applicants who apply under the 
down 
payment 
loan 
program 
under section 310E or joint fi-
nancing arrangements under sec-
tion 307(a)(3)(D); and 
‘‘(bb) may offer other financ-
ing options under this subtitle to 
applicants only if the Secretary 
determines that down payment or 
other participation loan options 
are not a viable approach for the 
applicants.’’. 
SEC. 5305. LOAN FUND SET-ASIDES. 
Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm 
and 
Rural 
Development 
Act 
(7 
U.S.C. 
1994(b)(2)(A)(ii)(III)) is amended— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘of the total amount’’. 
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373 
SEC. 5306. CONFORMING AMENDMENT TO BORROWER 
TRAINING PROVISION, RELATING TO ELIGI-
BILITY CHANGES. 
Section 359(c)(2) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006a(c)(2)) is amended by 
striking ‘‘section 302(a)(2) or 311(a)(2)’’ and inserting 
‘‘section 302(a)(1)(B) or 311(a)(1)(B)’’. 
Subtitle E—State Agricultural 
Mediation Programs 
SEC. 5401. STATE AGRICULTURAL MEDIATION PROGRAMS. 
Section 506 of the Agricultural Credit Act of 1987 (7 
U.S.C. 5106) is amended by striking ‘‘2015’’ and inserting 
‘‘2018’’. 
Subtitle F—Loans to Purchasers of 
Highly Fractionated Land 
SEC. 
5501. 
LOANS 
TO 
PURCHASERS 
OF 
HIGHLY 
FRACTIONATED LAND. 
The first section of Public Law 91–229 (25 U.S.C. 488) 
is amended in subsection (b)(1) by striking ‘‘pursuant to 
section 205(c) of the Indian Land Consolidation Act (25 
U.S.C. 2204(c))’’ and inserting ‘‘or to intermediaries in 
order to establish revolving loan funds for the purchase of 
highly fractionated land’’. 
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TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and 
Rural Development Act 
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FA-
CILITY GRANTS. 
Section 306(a)(2)(B)(vii) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) 
is amended by striking ‘‘2008 through 2012’’ and inserting 
‘‘2014 through 2018’’. 
SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS. 
Section 306(a)(11)(D) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is 
amended by striking ‘‘$15,000,000 for each of fiscal years 
2008 through 2012’’ and inserting ‘‘$15,000,000 for each 
of fiscal years 2014 through 2018’’. 
SEC. 6003. ELIMINATION OF RESERVATION OF COMMUNITY 
FACILITIES GRANT PROGRAM FUNDS. 
Section 306(a)(19) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(19)) is amended 
by striking subparagraph (C). 
SEC. 6004. UTILIZATION OF LOAN GUARANTEES FOR COM-
MUNITY FACILITIES. 
Section 306(a)(24) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(24)) is amended 
by adding at the end the following: 
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‘‘(C) UTILIZATION
OF
LOAN
GUARANTEES 
FOR
COMMUNITY
FACILITIES.—The Secretary 
shall consider the benefits to communities that 
result from using loan guarantees in the Com-
munity Facilities Program and to the maximum 
extent possible utilize guarantees to enhance com-
munity involvement.’’. 
SEC. 6005. RURAL WATER AND WASTEWATER CIRCUIT 
RIDER PROGRAM. 
Section 306(a)(22) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(22)) is amended 
to read as follows: 
‘‘(22) RURAL WATER AND WASTEWATER CIRCUIT 
RIDER PROGRAM.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
continue a national rural water and wastewater 
circuit rider program that— 
‘‘(i) is consistent with the activities 
and results of the program conducted before 
the date of enactment of this paragraph, as 
determined by the Secretary; and 
‘‘(ii) receives funding from the Sec-
retary, acting through the Rural Utilities 
Service. 
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376 
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to carry out this paragraph $20,000,000 for fis-
cal year 2014 and each fiscal year thereafter.’’. 
SEC. 6006. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL 
COMMUNITY FACILITIES. 
Section 306(a)(25)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(25)(C)) is 
amended by striking ‘‘$10,000,000 for each of fiscal years 
2008 through 2012’’ and inserting ‘‘$5,000,000 for each of 
fiscal years 2014 through 2018’’. 
SEC. 6007. ESSENTIAL COMMUNITY FACILITIES TECHNICAL 
ASSISTANCE AND TRAINING. 
Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(19)) is amended by 
adding at the end the following new paragraph: 
‘‘(26) ESSENTIAL COMMUNITY FACILITIES TECH-
NICAL ASSISTANCE AND TRAINING.— 
‘‘(A) IN
GENERAL.—The Secretary may 
make grants to public bodies and private non-
profit corporations, such as States, counties, cit-
ies, townships, and incorporated towns and vil-
lages, boroughs, authorities, districts and Indian 
tribes on Federal and State reservations which 
will serve rural areas for the purpose of enabling 
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377 
them to provide to associations described in this 
subsection technical assistance and training, 
with respect to essential community facilities 
programs authorized under this subsection, to— 
‘‘(i) assist communities in identifying 
and planning for community facility needs; 
‘‘(ii) identify public and private re-
sources to finance community facilities 
needs; 
‘‘(iii) prepare reports and surveys nec-
essary to request financial assistance to de-
velop community facilities; 
‘‘(iv) prepare applications for finan-
cial assistance; 
‘‘(v) improve the management, includ-
ing financial management, related to the 
operation of community facilities; or 
‘‘(vi) assist with other areas of need 
identified by the Secretary. 
‘‘(B) SELECTION
PRIORITY.—In selecting 
recipients of grants under this paragraph, the 
Secretary shall give priority to private, non-
profit, or public organizations that have experi-
ence in providing technical assistance and train-
ing to rural entities. 
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378 
‘‘(C) FUNDING.—Not less than 3 nor more 
than 5 percent of any funds appropriated to 
carry out each of the essential community facili-
ties grant, loan and loan guarantee programs as 
authorized under this subsection for any fiscal 
year shall be reserved for grants under this para-
graph.’’. 
SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER 
ASSISTANCE GRANT PROGRAM. 
Section 306A(i)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended 
by striking ‘‘$35,000,000 for each of fiscal years 2008 
through 2012’’ and inserting ‘‘$27,000,000 for each of fiscal 
years 2014 through 2018’’. 
SEC. 6009. HOUSEHOLD WATER WELL SYSTEMS. 
Section 306E(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926e(d)) is amended by strik-
ing ‘‘$10,000,000 for each of fiscal years 2008 through 
2012’’ and inserting ‘‘$5,000,000 for each of fiscal years 
2014 through 2018’’. 
SEC. 6010. RURAL BUSINESS AND INDUSTRY LOAN PRO-
GRAM. 
(a) FLEXIBILITY FOR THE BUSINESS AND LOAN PRO-
GRAM.—Section 310B(a)(2)(A) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1932(a)(2)(A)) is 
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amended by inserting ‘‘including working capital’’ after 
‘‘employment’’. 
(b) GREATER FLEXIBILITY FOR ADEQUATE COLLAT-
ERAL
THROUGH
ACCOUNTS
RECEIVABLE.—Section 
310B(g)(7) of such Act (7 U.S.C. 1932(g)(7)) is amended 
by adding at the end the following: ‘‘In the discretion of 
the Secretary, if the Secretary determines that the action 
would not create or otherwise contribute to an unreasonable 
risk of default or loss to the Federal Government, the Sec-
retary may take account receivables as security for the obli-
gations entered into in connection with loans and a bor-
rower may use account receivables as collateral to secure 
a loan made or guaranteed under this subsection.’’. 
(c) REGULATIONS.—Not later than 6 months after the 
date of the enactment of this Act, the Secretary shall pro-
mulgate such regulations as are necessary to implement the 
amendments made by this section. 
SEC. 6011. RURAL COOPERATIVE DEVELOPMENT GRANTS. 
Section 310B(e)(12) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(e)(12)) is amended 
by striking ‘‘$50,000,000 for each of fiscal years 2008 
through 2012’’ and inserting ‘‘$40,000,000 for each of fiscal 
years 2014 through 2018’’. 
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380 
SEC. 6012. LOCALLY OR REGIONALLY PRODUCED AGRICUL-
TURAL FOOD PRODUCTS. 
Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) 
is amended— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by inserting ‘‘and not more than 7 percent’’ 
after ‘‘5 percent’’. 
SEC. 6013. INTERMEDIARY RELENDING PROGRAM. 
(a) IN GENERAL.—Subtitle A of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1922–1936a) 
is amended by adding at the end the following: 
‘‘SEC. 310H. INTERMEDIARY RELENDING PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall make loans to 
the entities, for the purposes, and subject to the terms and 
conditions specified in the 1st, 2nd, and last sentences of 
section 623(a) of the Community Economic Development 
Act of 1981 (42 U.S.C. 9812(a)). 
‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—For loans under subsection (a), there are author-
ized to be appropriated to the Secretary not more than 
$10,000,000 for each of fiscal years 2014 through 2018.’’. 
(b) CONFORMING AMENDMENTS.—Section 1323(b)(2) 
of the Food Security Act of 1985 (Public Law 99–198; 7 
U.S.C. 1932 note) is amended— 
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381 
(1) in subparagraph (A), by adding ‘‘and’’ at the 
end; 
(2) in subparagraph (B), by striking ‘‘; and’’ 
and inserting a period; and 
(3) by striking subparagraph (C). 
SEC. 6014. RURAL COLLEGE COORDINATED STRATEGY. 
Section 331 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981) is amended by adding at 
the end the following: 
‘‘(d) RURAL COLLEGE COORDINATED STRATEGY.—The 
Secretary shall develop a coordinated strategy across the 
relevant programs within the Rural Development mission 
areas to serve the specific, local needs of rural communities 
when making investments in rural community colleges and 
technical colleges through other current authorities. During 
the development of a coordinated strategy, the Secretary 
shall consult with groups representing rural-serving com-
munity colleges and technical colleges to coordinate critical 
investments in rural community colleges and technical col-
leges involved in workforce training. Nothing in this sub-
section shall be construed to provide a priority for funding 
within current authorities. The Secretary shall use the co-
ordinated strategy and information developed for the strat-
egy to more effectively serve rural communities with respect 
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382 
to investments in community colleges and technical col-
leges.’’. 
SEC. 6015. RURAL WATER AND WASTE DISPOSAL INFRA-
STRUCTURE. 
Section 333 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1983) is amended— 
(1) by striking ‘‘require’’; 
(2) in paragraph (1), by inserting ‘‘require’’ 
after ‘‘(1)’’; 
(3) in paragraph (2), by inserting ‘‘, require’’ 
after ‘‘314’’; 
(4) in paragraph (3), by inserting ‘‘require’’ 
after ‘‘loans,’’; 
(5) in paragraph (4)— 
(A) by inserting ‘‘require’’ after ‘‘(4)’’; and 
(B) by striking ‘‘and’’ after the semicolon; 
(6) in paragraph (5)— 
(A) by inserting ‘‘require’’ after ‘‘(5)’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and 
(7) by adding at the end the following: 
‘‘(6) with respect to water and waste disposal di-
rect and guaranteed loans provided under section 306, 
encourage, to the maximum extent practicable, pri-
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vate or cooperative lenders to finance rural water and 
waste disposal facilities by— 
‘‘(A) maximizing the use of loan guarantees 
to finance eligible projects in rural communities 
where the population exceeds 5,500; 
‘‘(B) maximizing the use of direct loans to 
finance eligible projects in rural communities 
where the impact on rate payers will be material 
when compared to financing with a loan guar-
antee; 
‘‘(C) establishing and applying a materi-
ality standard when determining the difference 
in impact on rate payers between a direct loan 
and a loan guarantee; 
‘‘(D) in the case of projects that require in-
terim financing in excess of $500,000, requiring 
that such projects initially seek such financing 
from private or cooperative lenders; and 
‘‘(E) determining if an existing direct loan 
borrower can refinance with a private or cooper-
ative lender, including with a loan guarantee, 
prior to providing a new direct loan.’’. 
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that provides detailed information on funding oppor-
tunities at the Institute, including the purpose, eligi-
bility, restriction, focus areas, evaluation criteria, 
regulatory information, and instructions on how to 
apply for such opportunities.’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(e) ADDITIONAL PRESIDENTIAL BUDGET SUBMISSION 
REQUIREMENT.— 
‘‘(1) IN
GENERAL.—Each year, the President 
shall submit to Congress, together with the annual 
budget submission of the President, the information 
described in paragraph (2) for each funding request 
for a covered program. 
‘‘(2) INFORMATION
DESCRIBED.—The informa-
tion described in this paragraph includes— 
‘‘(A) baseline information, including with 
respect to each covered program— 
‘‘(i) the funding level for the program 
for the fiscal year preceding the year the 
annual budget submission of the President 
is submitted; 
‘‘(ii) the funding level requested in the 
annual budget submission of the President, 
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