Flexible Financing for Rural America Act of 2021
Bill: S.978 | Sponsor: Sen. Smith, Tina (D-MN)
Policy area: Agriculture and Food

Summary:
Flexible Financing for Rural America Act of 2021
This bill allows rural utility service providers to submit to the Department of Agriculture (USDA) a request to adjust the interest rate or modify the terms of certain loans. The request shall include a report summarizing how the adjustment or modification will assist the borrower in providing critical utility services to a rural community.
Specifically, on receipt of a request, USDA or the Department of the Treasury (in the case of a loan owned by the Federal Financing Bank) must
In carrying out the adjustments or modifications, USDA or Treasury shall not impose or collect any fee from, or impose any penalty on, a borrower.
The bill also provides funding to implement the adjustments and modifications and for the liquidation of residual intragovernmental amounts owed by the Federal Financing Bank in connection with certain loans.

To provide for the adjustment or modification by the Secretary of 
Agriculture of loans for critical rural utility service providers, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexible Financing for Rural America 
Act of 2021''.

SEC. 2. LOAN ADJUSTMENTS FOR CRITICAL RURAL UTILITY SERVICE PROVIDERS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the borrower of a qualified loan described in 
subsection (b) may submit to the Secretary of Agriculture (referred to 
in this section as the ``Secretary'') a request to adjust the interest 
rate or modify any other term of the qualified loan, which shall 
include a report summarizing how the adjustment or modification will 
assist the borrower in providing critical utility services to a rural 
community.
    (b) Qualified Loan Described.--A qualified loan referred to in 
subsection (a) is a loan made or guaranteed on or before the date of 
enactment of this Act under--
            (1) section 4, 201, 305, 306, or 601 of the Rural 
        Electrification Act of 1936 (7 U.S.C. 904, 922, 935, 936, 
        950bb); or
            (2) the program carried out under the matter under the 
        heading ``distance learning, telemedicine, and broadband 
        program'' in title I of division A of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 118) 
        (commonly known as the ``Broadband Initiatives Program'').
    (c) Adjustment of Interest Rate; Modification of Loan Terms.--
            (1) In general.--On receipt by the Secretary of a request 
        made under subsection (a) with respect to a loan, the 
        Secretary, or the Secretary of the Treasury in the case of a 
        loan owned by the Federal Financing Bank--
                    (A) in the case of a request for an interest rate 
                adjustment, shall adjust the interest rate on the loan 
                to the cost of funds to the Department of the Treasury 
                for obligations of comparable maturity to the term 
                remaining on the outstanding balance of the loan or 
                other such higher rate as the borrower may request; and
                    (B) in the case of a request for a modification to 
                a loan term other than the adjustment described in 
                subparagraph (A), may use the authorities provided in 
                sections 2, 201, 306C, and 703 of the Rural 
                Electrification Act of 1936 (7 U.S.C. 902, 922, 936c, 
                950cc-2) and section 331(b)(4) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1981(b)(4)) to make 
                such other modifications to the loan terms that the 
                Secretary, in consultation with the Secretary of the 
                Treasury in the case of a loan owned by the Federal 
                Financing Bank, determines are necessary--
                            (i) to address changes in the financial 
                        position of the borrower due to the public 
                        health emergency declared by the Secretary of 
                        Health and Human Services under section 319 of 
                        the Public Health Service Act (42 U.S.C. 247d) 
                        on January 31, 2020, with respect to COVID-19 
                        (or any renewal of that declaration); and
                            (ii) to promote the financial 
                        sustainability of the borrower.
            (2) Effective date.--An adjustment or modification under 
        subparagraph (A) or (B), respectively, of paragraph (1) shall 
        apply--
                    (A) beginning on the first calendar day after the 
                payment date immediately following the request; but
                    (B) not earlier than 30 days after the date of the 
                request.
    (d) No Fees or Penalties.--In carrying out this section, the 
Secretary, or the Secretary of the Treasury in the case of a loan owned 
by the Federal Financing Bank, shall not impose or collect any fee 
from, or impose any penalty on, a borrower.
    (e) Notice.--Not later than 30 days after the date of enactment of 
this Act, the Secretary, in coordination with the Secretary of the 
Treasury, shall publish in the Federal Register a notice of the 
benefits available to borrowers under this section.
    (f) Appropriations; Reimbursements.--
            (1) In general.--Out of any amounts in the Treasury not 
        otherwise appropriated--
                    (A) there are appropriated to the Secretary such 
                sums as are necessary, to remain available until 
                December 31, 2021, for the cost of interest rate 
                adjustments under subsection (c)(1)(A);
                    (B) there is appropriated to the Secretary 
                $300,000,000, to remain available until December 31, 
                2021, for the cost of modifications under subsection 
                (c)(1)(B); and
                    (C) there are appropriated to the Federal Financing 
                Bank such sums as are necessary, to remain available 
                until December 31, 2023, for the liquidation of 
                residual intragovernmental amounts owed by the Federal 
                Financing Bank in connection with qualified loans 
                described in subsection (b) modified after the date of 
                enactment of this Act.
            (2) Calculation.--For purposes of paragraph (1)(C), the 
        calculation of the sums necessary for the liquidation of 
        residual intragovernmental amounts owed shall take into account 
        all amounts otherwise transferred to the Federal Financing Bank 
        for the qualified loans described in that paragraph.
            (3) Emergency designation.--
                    (A) In general.--The amounts provided by this Act 
                are designated as an emergency requirement pursuant to 
                section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
                (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this Act 
                is designated as an emergency requirement pursuant to 
                section 4112(a) of H. Con. Res. 71 (115th Congress), 
                the concurrent resolution on the budget for fiscal year 
                2018.
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