the agricultural producers meet the second level of 
environmental performance, as determined by the 
index of environmental performance. 
‘‘(6) Subject to the percentage restrictions on 
direct payment amounts imposed by section 102(b) 
of the Food and Agriculture Risk Management for 
the 21st Century Act of 2007, 100 percent of the 
available direct payment shall be provided so long as 
the agricultural producers meet the third level of en-
vironmental performance, as determined by the 
index of environmental performance.’’. 
SEC. 104. COUNTER-CYCLICAL PAYMENTS. 
(a) ONE-YEAR EXTENSION.—Section 1104 of the 
Farm Security and Rural Investment Act of 2002 is 
amended by striking ‘‘2007’’ each place it appears and 
inserting ‘‘2008’’. 
(b) RELATION TO OTHER CHANGES MADE BY THIS 
ACT.—Counter-cyclical payments described in section 
1104 of the Farm Security and Rural Investment Act of 
2002 for the 2007 and 2008 crop years are to be cal-
culated under such section without regard to the changes 
made by section 103 with regard to direct payments or 
the repeal of other commodity programs under section 
106. Under no circumstances may counter-cyclical pay-
ments be made for the 2011 or subsequent crop years. 
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SEC. 105. DAIRY. 
(a) MILK PRICE SUPPORT PROGRAM.—Section 1501 
of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 7981) is repealed. 
(b) MILC PROGRAM.—Section 1502 of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 7982) 
is amended to read as follows: 
‘‘SEC. 1502. SUPPORT FOR MILK PRODUCERS. 
‘‘Dairy operators shall receive equal annual payments 
in each of the fiscal years 2008 through 2012, cumula-
tively equal to 90 percent of the milk income loss contract 
payments the operator received in fiscal years 2003 
through 2007. One half of the annual payment shall be 
immediately available to the producer, and one half of the 
payment shall be placed in the risk management account 
of the operator’’. 
SEC. 106. REPEAL OF OTHER COMMODITY PROGRAMS. 
(a) REPEAL OF COMMODITY PROGRAMS.—Except as 
otherwise provided by this Act, all commodity programs 
set forth in subtitles A, B, C, and D of title I of the Farm 
Security and Rural Investment Act of 2002 and sections 
1501 and 1502 of such Act are repealed. 
(b) REPEAL
OF SUSPENDED AUTHORITIES.—The 
provisions of law that were suspended by section 1602 of 
the Farm Security and Rural Investment Act of 2002 pur-
suant to paragraphs (1), (2), (3), and (4) of subsection 
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(a), paragraphs (1) through (12) of subsection (b), and 
subsection (c) are repealed. 
(c) REPEAL OF SUGAR TARIFF RATE QUOTA.—The 
existing sugar tariff rate quota is repealed. 
SEC. 107. RECOURSE LOAN PROGRAM. 
The Secretary of Agriculture shall establish a re-
course loan program for all commodities, including sugar, 
for which marketing loans were available under the terms 
of title I of the Farm Security and Rural Investment Act 
of 2002 at a rate of interest determined by the Secretary. 
SEC. 108. CROP INSURANCE REIMBURSEMENT RATE. 
Section 508(k)(4)(A)(ii) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(k)(4)(A)(ii)) is amended by 
striking ‘‘24.5’’ and inserting ‘‘23.2’’. 
TITLE II—REALLOCATIONS 
Subtitle A—Conservation 
SEC. 201. CONSERVATION. 
(a) EXTENSION OF ENVIRONMENTAL QUALITY IN-
CENTIVES PROGRAM.—Section 1241(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3841(a)) is amended by strik-
ing paragraph (6) and inserting the following new para-
graph: 
‘‘(6) The environmental quality incentives pro-
gram under chapter 4, using, to the maximum ex-
tent practicable— 
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‘‘(A) $1,550,000,000 in fiscal year 2008; 
‘‘(B) $1,700,000,000 in fiscal year 2009; 
‘‘(C) $1,800,000,000 in fiscal year 2010; 
‘‘(D) $1,900,000,000 in fiscal year 2011; 
and 
‘‘(E) $2,000,000,000 in fiscal year 2012.’’. 
(b) EXTENSION
OF
CONSERVATION
INNOVATION 
GRANTS PROGRAM.—Section 1240H of such Act (16 
U.S.C. 3839aa–8) is amended by adding at the end the 
following: 
‘‘(d) FUNDING.—Of the funds made available under 
section 1241(a)(6), the Secretary shall use funds of the 
Commodity Credit Corporation to carry out this section 
in the following amounts: 
‘‘(1) $40,000,000 for fiscal year 2008. 
‘‘(2) $50,000,000 for fiscal year 2009. 
‘‘(3) $60,000,000 for fiscal year 2010. 
‘‘(4) $75,000,000 for each of fiscal years 2011 
through 2012.’’. 
(c) EXTENSION
OF
WETLANDS
RESERVE
PRO-
GRAM.— 
(1) FUNDING EXTENSION.—Section 1241(a)(2) 
of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(2)) is amended by striking ‘‘The’’ and in-
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serting ‘‘For each of fiscal years 2002 through 
2012, the’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1237(c) of such Act (16 U.S.C. 3837(c)) is amended 
by striking ‘‘2007’’ and inserting ‘‘2012’’. 
(d) MAXIMUM AND YEARLY ENROLLMENT.—Section 
1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3837(b)(1)) is amended— 
(1) by striking ‘‘2,275,000 acres’’ and inserting 
‘‘3,350,000 acres’’; and 
(2) by striking ‘‘250,000’’ and inserting 
‘‘250,000 acres in 2008 and 2009, 275,000 acres in 
2010 and 2011, and 300,000 acres in 2012.’’. 
(e) EXTENSION
OF GRASSLANDS RESERVE PRO-
GRAM.— 
(1) 
EXTENSION
AND
FUNDING.—Section 
1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended by striking paragraph 
(5) and inserting the following new paragraph: 
‘‘(5) For each of fiscal years 2002 through 
2012, the grassland reserve program under sub-
chapter C of chapter 2.’’. 
(2) ENROLLMENT
GOALS.—Section 1238N(b) 
of such Act (16 U.S.C. 3838N(b)) is amended in 
paragraph (1), by striking ‘‘2,000,000 acres’’ and 
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inserting ‘‘500,000 acres in each of fiscal years 2008 
through 2012’’. 
(f) EXTENSION OF WILDLIFE HABITAT INCENTIVES 
PROGRAM.—Section 1241(a)(7) of the Food Security Act 
of 1985 (16 U.S.C. 3841(a)(7)) is amended by striking 
subparagraphs (A) through (D) and inserting the fol-
lowing new subparagraphs: 
‘‘(A) $80,000,000 in fiscal years 2008 and 
2009; 
‘‘(B) $100,000,000 in fiscal years 2010 
and 2011; and 
‘‘(C) $150,000,000 in fiscal year 2012.’’. 
(g) EXTENSION OF FARM AND RANCHLAND PROTEC-
TION PROGRAM.—Paragraph (4) of subsection (a) of sec-
tion 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended to read as follows: 
‘‘(4) The farmland protection program under 
subchapter B of chapter 2, using $100,000,000 in 
each of fiscal years 2008 through 2012.’’. 
(h) HEALTHY FORESTS RESERVE PROGRAM.—Sec-
tion 508 of the Food Security Act of 1985 (16 U.S.C. 
6578) is amended to read as follows: 
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‘‘SEC. 508 FUNDING FOR HEALTHY FORESTS RESERVE PRO-
GRAM. 
‘‘For each of fiscal years 2008 through 2012, the 
Secretary shall use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out the 
healthy forests reserve program, including the provision 
of technical assistance under the program, in an amount 
not to exceed $50,000,000 each fiscal year.’’. 
Subtitle B—Healthy Foods 
SEC. 221. DOMESTIC NUTRITION AND HEALTH. 
(a) FRUIT AND VEGETABLE SNACK PROGRAM.—Sec-
tion 18 of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1769) is amended in subsection (g)— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘July 2004’’ and inserting 
‘‘July 2007’’; and 
(B) by striking subparagraphs (A) and (B) 
and inserting the following: 
‘‘(A) 100 elementary or secondary schools 
in each State; 
‘‘(B) additional elementary or secondary 
schools in each State in proportion to the stu-
dent population of the State; and’’; 
(2) in paragraph (3)(A), by striking ‘‘paragraph 
(1)(B)’’ and inserting ‘‘paragraph (1)’’; 
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(3) in paragraph (5), in each of subparagraphs 
(A) and (B), by striking ‘‘2008’’ and inserting 
‘‘2011’’; and 
(4) in paragraph (6)(B)(i)— 
(A) by striking ‘‘October 1, 2004,’’ and in-
serting ‘‘October 1, 2007,’’; and 
(B) by striking ‘‘$9,000,000’’ and insert-
ing 
‘‘$9,000,000 
in 
fiscal 
year 
2008, 
$12,000,000 
in 
fiscal 
year 
2009, 
and 
$75,000,000 in each of fiscal years 2010 
through 2012’’. 
(b) FARM TO SCHOOL PROGRAM.—Section 18 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1769) is amended in subsection (i)(2) by striking ‘‘such 
sums as are necessary’’ and all that follows through the 
period at the end and inserting ‘‘to carry out this sub-
section $5,000,000 for each of fiscal years 2008 and 2009, 
$8,000,000 for each of fiscal years 2010 through 2012.’’. 
(c) FARMERS MARKET PROMOTION PROGRAM.—Sec-
tion 6 of the Farmer-to-Consumer Direct Marketing Act 
of 1976 (7 U.S.C. 3005) is amended by striking sub-
sections (d) and (e) and inserting the following: 
‘‘(d) CRITERIA AND GUIDELINES.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish criteria and guidelines for the submission, eval-
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uation, and funding of proposed projects under the 
Program. 
‘‘(2) PRIORITY.—The Secretary shall prioritize 
the funding of projects that will support, encourage, 
or promote the transition to organic and other envi-
ronmentally beneficial forms of agricultural produc-
tion. 
‘‘(e) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use $25,000,000 
for each of the fiscal years 2008 through 2012 to carry 
out this section, of which $5,000,000 shall be used to sup-
port the use of electronic benefit transfers at farmers’ 
markets.’’. 
(d) FRUIT AND VEGETABLE NUTRITION PROMOTION 
PROGRAM.— 
(1) IN
GENERAL.—The Secretary of Agri-
culture, acting through the Administrator of the Ag-
ricultural Marketing Service, shall establish and 
carry out a program to provide assistance to eligible 
trade organizations described in paragraph (3) to in-
crease the consumption of fruits and vegetables in 
the United States to meet Federal health guidelines. 
(2) REQUIREMENTS FOR PARTICIPATION.—To 
be eligible for assistance under this section, an eligi-
ble trade organization shall— 
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(A) prepare and submit a plan to increase 
the consumption of fruits and vegetables in the 
United States to the Administrator of the Agri-
cultural Marketing Service that meets any 
guidelines governing such plans established by 
the Administrator; and 
(B) meet any other requirements estab-
lished by the Administrator. 
(3) ELIGIBLE TRADE ORGANIZATIONS.—An eli-
gible trade organization referred to in paragraph (1) 
means any of the following: 
(A) A nonprofit fruit and vegetable trade 
organizations in the United States. 
(B) A nonprofit State or regional fruit and 
vegetable organization. 
(C) A fruit and vegetable agricultural co-
operative in the United States. 
(D) A commodity board or commission in 
the United States. 
(E) A small business engaged in the fruit 
and vegetable industry in the United States. 
(4) MATCHING
FUNDS.—Assistance provided 
under this section shall not exceed— 
(A) in the case of an organization de-
scribed in subparagraphs (A) through (D) of 
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paragraph (3), 90 percent of the cost of the 
plan to increase the consumption of fruits and 
vegetables in the United States submitted under 
paragraph (2)(A); and 
(B) in the case of an organization de-
scribed in paragraph (3)(E), 50 percent of the 
cost of the plan to increase the consumption of 
fruits and vegetables in the United States sub-
mitted under paragraph (2)(A). 
(5) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Administrator of the Agri-
cultural Marketing Service shall use $10,000,000 in 
each of fiscal years 2008 through 2012 to carry out 
this section. 
Subtitle C—McGovern-Dole 
SEC. 231. REAUTHORIZATION OF MCGOVERN-DOLE INTER-
NATIONAL 
FOOD 
FOR 
EDUCATION 
AND 
CHILD NUTRITION PROGRAM. 
(a) ADMINISTRATION OF PROGRAM.—Section 3107 
of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1736o–1) is amended— 
(1) in subsection (d), in the matter preceding 
paragraph (1), by striking ‘‘The President shall des-
ignate 1 or more Federal agencies to’’ and inserting 
‘‘The Secretary shall’’; 
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(2) in subsection (f)(2), in the matter preceding 
subparagraph (A), by striking ‘‘implementing agen-
cy’’ and inserting ‘‘Secretary’’; and 
(3) in subsections (c)(2)(B), (f)(1), (h)(1) and 
(2), and (i), by striking ‘‘President’’ each place it 
appears and inserting ‘‘Secretary’’. 
(b) FUNDING.—Section 3107(l) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)) 
is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) USE OF COMMODITY CREDIT CORPORATION 
FUNDS.—Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this 
section— 
‘‘(A) not less than $50,000,000 for fiscal 
year 2008; 
‘‘(B) not less than $50,000,000 for fiscal 
year 2009; 
‘‘(C) not less than $100,000,000 for fiscal 
year 2010; 
‘‘(D) not less than $150,000,000 for fiscal 
year 2011; and 
‘‘(E) not less than $150,000,000 for fiscal 
year 2012.’’; 
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(2) by redesignating paragraph (3) as para-
graph (2); and 
(3) in paragraph (2) (as redesignated by para-
graph (2)), by striking ‘‘any Federal agency imple-
menting or assisting’’ and inserting ‘‘the Depart-
ment of Agriculture or any other Federal agency as-
sisting’’. 
Subtitle D—Renewable Energy 
SEC. 241. ENERGY. 
(a) EXTENSION
OF BIOREFEINERY GRANTS
AND 
LOANS.— 
(1) ASSISTANCE METHODS.—Subsection (c) of 
section 9003 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8103) to read as fol-
lows: 
‘‘(c) ASSISTANCE.—The Secretary shall award grants 
and make loans and loan guarantees to eligible entities 
to assist in covering the cost of development and construc-
tion of biorefineries or for the construction or deployment 
of methane digesters used to capture the methane gas 
from livestock manure for use as a fuel source for biofuel 
production to carry out projects to demonstrate the com-
mercial viability of one or more processes for converting 
biomass to fuels or chemicals.’’. 
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(2) 
ENVIRONMENTAL
GOALS.—Subsection 
(e)(2)(A) of such section is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(i); 
(B) by redesignating clause (ii) as clause 
(iii); and 
(C) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) shall select projects based on the 
extent to which the projects meet environ-
mental goals for feed stocks and refineries, 
including goals related to reductions in 
greenhouse gas emissions and improvement 
in water quality and wildlife habitat, devel-
oped by the Secretary in consultation with 
the Secretary of the Interior, the Secretary 
of Energy, and the National Academy of 
Sciences; and’’. 
(3) FUNDING.—Subsection (i) of such section, 
as amended by subsection (d)(1), is amended to read 
as follows: 
‘‘(i) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available 
$50,000,000 for each of fiscal years 2008 and 2009 and 
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$75,000,000 for each of the fiscal years 2010 through 
2012 to carry out this section.’’. 
(4) CONFORMING AMENDMENTS.—Such section 
is further amended— 
(A) in the heading, by striking ‘‘GRANTS’’ 
and inserting ‘‘ASSISTANCE’’; 
(B) in subsection (c)— 
(i) 
in 
the 
heading, 
by 
striking 
‘‘GRANTS’’ 
and 
inserting 
‘‘GRANTS, 
LOANS, AND LOAN GUARANTEES’’; and 
(ii) by striking ‘‘grants’’ and inserting 
‘‘grants and make loans and loan guaran-
tees’’; and 
(C) in subsection (e)— 
(i) in paragraph (1), by striking 
‘‘grants’’ and inserting ‘‘grants and make 
loans and loan guarantees’’; and 
(ii) in paragraph (2)(A), by striking 
‘‘grants’’ and inserting ‘‘grants, loans, and 
loan guarantees’’. 
(b) EXTENSION OF RENEWABLE ENERGY SYSTEMS 
AND ENERGY EFFICIENCY IMPROVEMENTS PROGRAM.— 
(1) PRIORITIES.—Section 9006 of the Farm 
Security and Rural Investment Act of 2002 (7 
U.S.C. 8106) is amended— 
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(A) by redesignating subsections (c), (d), 
(e), and (f) as subsections (d), (e), (f), and (g), 
respectively; and 
(B) by inserting after subsection (b) the 
following new subsection: 
‘‘(c) PRIORITY.—The Secretary shall prioritize for 
the awarding of a grant, loan, or loan guarantee under 
this section projects that— 
‘‘(1) will produce environmental benefits, in-
cluding reductions in greenhouse gas emissions, 
other improvements in air quality, and improve-
ments in water quality; and 
‘‘(2) foster community or cooperative ap-
proaches to renewable energy development.’’. 
(2) FUNDING.—Subsection (g) of such section, 
as redesignated by paragraph (1)(A), is amended to 
read as follows: 
‘‘(g) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall make 
available to carry out this section— 
‘‘(A) $75,000,000 for fiscal year 2008; 
‘‘(B) $75,000,000 for fiscal year 2009; 
‘‘(C) $75,000,000 for fiscal year 2010; 
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‘‘(D) $75,000,000 for fiscal year 2011; 
and 
‘‘(E) $100,000,000 for fiscal year 2012. 
‘‘(2) AVAILABILITY.—Funds made available 
under paragraph (1) shall remain available until ex-
pended.’’. 
(c) REAUTHORIZATION OF AND INCREASED FUNDING 
FOR BIOMASS RESEARCH AND DEVELOPMENT.—Section 
310 of the Biomass Research and Development Act of 
2000 (7 U.S.C. 7624 note; Public Law 106–224) is 
amended to read as follows: 
‘‘SEC. 310. FUNDING. 
‘‘(a) FUNDING.—Of funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry 
out this title $75,000,000 for each of fiscal years 2008 
through 2012. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad-
dition to amounts transferred under subsection (a), there 
are authorized to be appropriated to carry out this title 
$200,000,000 for each of fiscal years 2008 through 2012. 
‘‘(c) AVAILABILITY
OF
FUNDS.—Amounts made 
available under subsection (a) or appropriated pursuant 
to the authorization of appropriations in subsection (b) 
shall remain available until expended.’’. 
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Subtitle E—Rural Development 
SEC. 251. RURAL DEVELOPMENT. 
(a) TARGETING OF RURAL DEVELOPMENT FUNDING 
TO LOW-INCOME RURAL AREAS.—Subtitle D of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1981–2008r) is amended by inserting after section 364 
the following: 
‘‘SEC. 365. CRITERIA TO BE APPLIED IN CONSIDERING AP-
PLICATIONS 
FOR 
RURAL 
DEVELOPMENT 
PROJECTS. 
‘‘The Secretary shall not approve an application 
which is submitted under any program authorized or 
modified by, or funded pursuant to, an amendment made 
by title VI of the Farm Security and Rural Investment 
Act of 2002, and which proposes to serve a rural area 
(as defined by the applicable law), unless— 
‘‘(1)(A) the median family income in the area 
is not more than 85 percent of the median household 
income in the State in which the area is located; and 
‘‘(B) the area is not— 
‘‘(i) included within the boundaries of any 
city, town, borough, or village, whether incor-
porated or unincorporated, with a population of 
more than 20,000 inhabitants; 
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‘‘(ii) included within the boundaries of an 
urbanized area or urban cluster; or 
‘‘(iii) within 10 miles of the boundary of 
any such city, village, borough, town, urbanized 
area, or urban cluster; 
‘‘(2) the area— 
‘‘(A) is in a county designated as Non- 
metro by the Economic Research Service of the 
Department of Agriculture; and 
‘‘(B) has experienced net population out- 
migration over the last 5 years; or 
‘‘(3) the area is in a county designated a Non- 
metro Persistent Poverty County by the Economic 
Research Service of the Department of Agri-
culture.’’. 
(b) VALUE-ADDED PRODUCER GRANT PROGRAM.— 
Section 231(b) of the Agricultural Risk Protection Act of 
2000 (7 U.S.C. 1621 note; Public Law 106–224) is 
amended— 
(1) in paragraph (4)— 
(A) by striking ‘‘2002’’ and inserting 
‘‘2008’’; and 
(B) by striking ‘‘2006’’ and inserting 
‘‘2012’’; and 
(2) by adding at the end the following: 
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‘‘(5) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to proposals 
that are most likely to increase the profitability and 
viability of small- and medium-sized farms and 
ranches. 
‘‘(6) SET-ASIDE FOR BEGINNING FARMERS AND 
RANCHERS.—Not less than 10 percent and not more 
than 15 percent of the amounts made available for 
grants under this section for a fiscal year shall be 
available for grants to qualified beginning farmers or 
ranchers (as defined in section 343(a)(11) of the 
Consolidated Farm and Rural Development Act). 
‘‘(7) SET-ASIDE FOR SOCIALLY DISADVANTAGED 
FARMER AND RANCHERS.—Not less than 10 percent 
and not more than 15 percent of the amounts made 
available for grants under this section for a fiscal 
year shall be available for grants to socially dis-
advantaged farmers or ranchers (as defined in sec-
tion 355(e) of the Consolidated Farm and Rural De-
velopment Act).’’. 
(c) RURAL BROADBAND ACCESS.—Section 601(j) of 
the Rural Electrification Act of 1936 (7 U.S.C. 950bb(j)) 
is amended by striking ‘‘—’’ and all that follows and in-
serting ‘‘$10,000,000 for each of fiscal years 2008 
through 2012, to remain available until expended.’’. 
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(d) RURAL BUSINESS OPPORTUNITY GRANTS.—Sec-
tion 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended 
by striking ‘‘2007’’ and inserting ‘‘2012’’. 
(e) FARMWORKER TRAINING GRANT PROGRAM.— 
Section 379C(c) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008q(c)) is amended by striking 
‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 252. RURAL ENTREPRENEUR AND MICROENTERPRISE 
ASSISTANCE PROGRAM. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981–2008r), as amended by 
section 251(a) of this Act, is amended by inserting after 
section 365 the following:: 
‘‘SEC. 366. RURAL ENTREPRENEUR AND MICROENTER-
PRISE ASSISTANCE PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ECONOMICALLY
DISADVANTAGED
MICRO-
ENTREPRENEUR.—The term ‘economically disadvan-
taged microentrepreneur’ means an owner, majority 
owner, or developer of a microenterprise that has the 
ability to compete in the private sector but has been 
impaired because of diminished capital and credit 
opportunities, as compared to other microentre-
preneurs in the industry. 
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‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
‘‘(3) INTERMEDIARY.—The term ‘intermediary’ 
means a private, nonprofit entity that provides as-
sistance— 
‘‘(A) to a microenterprise development or-
ganization; or 
‘‘(B) for a microenterprise development 
program. 
‘‘(4) LOW-INCOME INDIVIDUAL.—The term low- 
income individual means an individual with an in-
come (adjusted for family size) of not more than the 
greatest of— 
‘‘(A) 80 percent of median income of an 
area; 
‘‘(B) 80 percent of the statewide non-met-
ropolitan area median income; or 
‘‘(C) 80 percent of the national median in-
come. 
‘‘(5) MICROCREDIT.—The term ‘microcredit’ 
means a business loan or loan guarantee of not more 
than $50,000 that is provided to a rural entre-
preneur. 
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‘‘(6) MICROENTERPRISE.—The term ‘micro-
enterprise’ means— 
‘‘(A) a sole proprietorship; or 
‘‘(B) a business entity with not more than 
10 full-time-equivalent employees. 
‘‘(7) MICROENTERPRISE DEVELOPMENT ORGA-
NIZATION.— 
‘‘(A) IN GENERAL.—The term ‘microenter-
prise development organization’ means a pri-
vate, nonprofit entity that— 
‘‘(i) provides training and technical 
assistance to rural entrepreneurs; and 
‘‘(ii) facilitates access to capital or an-
other service described in subsection (b) 
for rural entrepreneurs. 
‘‘(B) INCLUSIONS.—The term ‘microenter-
prise development organization’ includes an or-
ganization described in subparagraph (A) with 
a demonstrated record of delivering services to 
economically disadvantaged microentrepreneurs, 
or an effective plan to develop a program to de-
liver microenterprise services to rural entre-
preneurs effectively, as determined by the Sec-
retary. 
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‘‘(8) MICROENTERPRISE
DEVELOPMENT
PRO-
GRAM.—The term ‘microenterprise development or-
ganization’ means a program administered by an or-
ganization serving a rural area. 
‘‘(9) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means the owner, operator, or devel-
oper of a microenterprise. 
‘‘(10) PROGRAM.—The term ‘program’ means 
the rural entrepreneur and microenterprise program 
established under subsection (b)(1). 
‘‘(11) QUALIFIED
ORGANIZATION.—The term 
‘qualified organization’ means— 
‘‘(A) a microenterprise development orga-
nization or microenterprise development pro-
gram that has a demonstrated record of deliv-
ering microenterprise services to rural entre-
preneurs, or an effective plan to develop a pro-
gram to deliver microenterprise services to rural 
entrepreneurs effectively, as determined by the 
Secretary. 
‘‘(B) an intermediary that has a dem-
onstrated record of delivery assistance to micro-
enterprise development organizations or micro-
enterprise development programs; 
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‘‘(C) a microenterprise development orga-
nization or microenterprise development pro-
gram that serves rural entrepreneurs; 
‘‘(D) an Indian tribe, the tribal govern-
ment of which certifies to the Secretary that no 
microenterprise development organization or 
microenterprise development program exists 
under the jurisdiction of the Indian tribe; 
‘‘(E) a group of 2 or more organizations or 
Indian tribes described in any of subparagraphs 
(A) through (D) that agree to act jointly as a 
qualified organization under this section; or 
‘‘(F) for purposes of subsection (b), a pub-
lic college or university. 
‘‘(12) RURAL
AREA.—The term ‘rural area’ 
means any community that is rural in character and 
has a population of not more than 25,000 individ-
uals. 
‘‘(13) RURAL CAPACITY BUILDING SERVICE.— 
The term ‘rural capacity building service’ means a 
service provided to an organization that— 
‘‘(A) is, or is in the process of becoming, 
a microenterprise development organization or 
microenterprise development program; and 
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