565 
(including a regulation) that serves as an eligibility pre-
requisite for a loan made under this subtitle. 
‘‘SEC. 3427. UNDERWRITING FORMS AND STANDARDS. 
‘‘In the administration of this subtitle, the Secretary 
shall, to the extent practicable, use underwriting forms, 
standards, practices, and terminology similar to the forms, 
standards, practices, and terminology used by lenders in 
the private sector. 
‘‘SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOP-
MENT ACCOUNTS PILOT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DEMONSTRATION
PROGRAM.—The term 
‘demonstration program’ means a demonstration 
program carried out by a qualified entity under the 
pilot program established in subsection (b)(1). 
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligi-
ble participant’ means a qualified beginning farmer 
that— 
‘‘(A) lacks significant financial resources 
or assets; and 
‘‘(B) has an income that is less than— 
‘‘(i) 80 percent of the median income 
of the State in which the farmer resides; or 
‘‘(ii) 200 percent of the most recent 
annual Federal Poverty Income Guidelines 
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published by the Department of Health 
and Human Services for the State. 
‘‘(3) INDIVIDUAL
DEVELOPMENT
ACCOUNT.— 
The term ‘individual development account’ means a 
savings account described in subsection (b)(4)(A). 
‘‘(4) QUALIFIED ENTITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
entity’ means— 
‘‘(i) 1 or more organizations— 
‘‘(I) 
described 
in 
section 
501(c)(3) of the Internal Revenue 
Code of 1986; and 
‘‘(II) exempt from taxation under 
section 501(a) of such Code; or 
‘‘(ii) a State, local, or tribal govern-
ment submitting an application jointly with 
an organization described in clause (i). 
‘‘(B) NO
PROHIBITION
ON
COLLABORA-
TION.—An organization described in subpara-
graph (A)(i) may collaborate with a financial 
institution or for-profit community development 
corporation to carry out the purposes of this 
section. 
‘‘(b) PILOT PROGRAM.— 
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‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a pilot program to be known as the ‘New Farm-
er Individual Development Accounts Pilot Program’ 
under which the Secretary shall work through quali-
fied entities to establish demonstration programs— 
‘‘(A) of at least 5 years in duration; and 
‘‘(B) in at least 15 States. 
‘‘(2) COORDINATION.—The Secretary shall op-
erate the pilot program through and in coordination 
with the farmer program loans of the Farm Service 
Agency. 
‘‘(3) RESERVE FUNDS.— 
‘‘(A) IN GENERAL.—A qualified entity car-
rying out a demonstration program under this 
section shall establish a reserve fund consisting 
of a non-Federal match of 50 percent of the 
total amount of the grant awarded to the dem-
onstration program under this section. 
‘‘(B) FEDERAL FUNDS.—After the quali-
fied entity has deposited the non-Federal 
matching funds described in subparagraph (A) 
in the reserve fund, the Secretary shall provide 
the total amount of the grant awarded under 
this section to the demonstration program for 
deposit in the reserve fund. 
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‘‘(C) USE OF FUNDS.—Of the funds depos-
ited under subparagraph (B) in the reserve 
fund established for a demonstration program, 
the qualified entity carrying out the demonstra-
tion program— 
‘‘(i) may use up to 10 percent for ad-
ministrative expenses; and 
‘‘(ii) shall use the remainder in mak-
ing matching awards described in para-
graph (4)(B)(ii)(I). 
‘‘(D) INTEREST.—Any interest earned on 
amounts in a reserve fund established under 
subparagraph (A) may be used by the qualified 
entity as additional matching funds for, or to 
administer, the demonstration program. 
‘‘(E) GUIDANCE.—The Secretary shall 
issue guidance regarding the investment re-
quirements of reserve funds established under 
this paragraph. 
‘‘(F) REVERSION.—On the date on which 
all funds remaining in any individual develop-
ment account established by a qualified entity 
have reverted under paragraph (5)(B)(ii) to the 
reserve fund established by the qualified entity, 
there shall revert to the Treasury of the United 
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