Title: Food Supply Protection Act of 2020
Policy area: Agriculture and Food

Summary:
Food Supply Protection Act of 2020
This bill provides assistance to food organizations to protect the continuity of the food supply chain during the COVID-19 (i.e., coronavirus disease 2019) public health emergency, including by providing grants that support the purchase or distribution of surplus perishable food or meals prepared with such food.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3840 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3840

To protect the continuity of the food supply chain of the United States 
            in response to COVID-19, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2020

  Ms. Stabenow (for herself, Mr. Leahy, Mr. Brown, Ms. Klobuchar, Mr. 
  Bennet, Mrs. Gillibrand, Mr. Casey, Ms. Smith, Mr. Durbin, and Mr. 
   Schumer) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To protect the continuity of the food supply chain of the United States 
            in response to COVID-19, 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 ``Food Supply Protection Act of 
2020''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) COVID-19 emergency.--The term ``COVID-19 emergency'' 
        means 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.
            (2) Donation period.--The term ``donation period'' means 
        the period--
                    (A) beginning on January 31, 2020; and
                    (B) ending on the later of--
                            (i) December 31, 2020; and
                            (ii) a date after December 31, 2020, if 
                        there are remaining food surpluses relating to 
                        the COVID-19 emergency, as determined by the 
                        Secretary.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 3. INFRASTRUCTURE GRANTS TO NONPROFIT FEEDING ORGANIZATIONS.

    (a) Purposes.--The purposes of this section are--
            (1) to reduce food waste by supporting the distribution of 
        perishable food that would otherwise go to waste or be left 
        unharvested;
            (2) to provide food and meals to individuals in need during 
        the COVID-19 emergency;
            (3) to improve the ability of food banks and other 
        nonprofit feeding organizations to process, repack, store, or 
        distribute perishable food in response to the COVID-19 
        emergency; and
            (4) to facilitate partnerships with local and regional 
        organizations to store, repackage, prepare, process, or 
        distribute food and meals.
    (b) Definitions.--In this section:
            (1) Eligible organization.--The term ``eligible 
        organization'' means an organization providing free food or 
        meals during the donation period, including--
                    (A) a nonprofit organization, such as a food bank, 
                a school, and an emergency feeding organization;
                    (B) a faith-based organization that distributes 
                food or meals, and any other similar program, as 
                determined by the Secretary;
                    (C) a tribal organization that distributes food or 
                meals;
                    (D) a child or adult care center; and
                    (E) any other similar feeding entity, as determined 
                by the Secretary.
            (2) Secretary.--The term ``Secretary'' means the Secretary, 
        acting through the Administrator of the Food and Nutrition 
        Service.
            (3) Tribal organization.--The term ``tribal organization'' 
        has the meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
    (c) Reimbursement for Storage and Distribution of Perishable 
Commodities.--
            (1) Establishment.--Not later than 15 days after the date 
        of enactment of this Act, the Secretary shall establish a 
        program under which the Secretary shall reimburse costs 
        incurred during the donation period by an eligible organization 
        for the distribution and temporary storage of perishable 
        commodities, without regard to the source of those commodities.
            (2) Reimbursement rate.--Under the program established 
        under paragraph (1), the Secretary shall reimburse eligible 
        organizations at a rate of $0.10 per pound of perishable food 
        stored and distributed during the donation period.
            (3) Advance reimbursement.--The Secretary shall provide an 
        advance reimbursement to an eligible organization under 
        paragraph (1) if the Secretary approves a plan submitted by the 
        eligible organization that--
                    (A) estimates the pounds of perishable food 
                expected to be distributed during the subsequent 30 
                days; and
                    (B) demonstrates the ability of the eligible 
                organization to accomplish that distribution.
            (4) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $500,000,000 
        to carry out this subsection, of which not more than 3 percent 
        may be used for administrative expenses.
    (d) Grants for Infrastructure, Equipment, and Supplies.--
            (1) Establishment.--Not later than 30 days after the date 
        of enactment of this Act, the Secretary shall establish a 
        program under which the Secretary shall award grants to 
        eligible organizations to improve, construct, rent, lease, or 
        purchase infrastructure, equipment, and supplies that support 
        the distribution of surplus perishable food or meals prepared 
        with that food and the purposes described in subsection (a).
            (2) Applications.--
                    (A) In general.--To be eligible to receive a grant 
                under paragraph (1), an eligible organization shall 
                submit to the Secretary an application at such time, in 
                such manner, and containing such information as the 
                Secretary may require, including the information 
                described in subparagraph (C).
                    (B) Review and submission.--The Secretary shall 
                approve or deny an application received under 
                subparagraph (A)--
                            (i) not later than 30 days after the date 
                        of receipt of the application; and
                            (ii) in the case of an application for a 
                        grant amount of less than $80,000 or an 
                        application that may be reviewed quickly 
                        otherwise, as determined by the Secretary, in 
                        accordance with the timeline in a fast-track 
                        review process established by the Secretary for 
                        such applications.
                    (C) Selection criteria.--In determining whether to 
                approve or deny an application of an eligible 
                organization under subparagraph (B), the Secretary 
                shall consider whether the eligible organization--
                            (i) to the extent practicable, will use 
                        local and regional food business and small and 
                        medium businesses to carry out activities under 
                        the grant;
                            (ii) will divert perishable food that would 
                        otherwise be wasted or unharvested;
                            (iii) will develop innovative partnerships 
                        with institutions that have available, 
                        underutilized cold storage, food preparation, 
                        or other existing resources or facilities;
                            (iv) will make investments in 
                        infrastructure or equipment that have short- or 
                        long-term value, have multiple uses, and would 
                        improve preparedness for future surges in 
                        donations of perishable foods; and
                            (v) demonstrates an ability to use the 
                        grant for the purposes described in paragraph 
                        (1).
            (3) Use of funds.--Activities carried out by eligible 
        organizations using grant funds awarded under paragraph (1) may 
        include the following:
                    (A) Purchasing new or temporary packaging materials 
                and food labels.
                    (B) Converting industrial-sized products to 
                consumer-sized products.
                    (C) Purchasing, renting, or leasing storage or 
                preparation space, cold storage, equipment, or 
                vehicles, trailers, or transportation services.
                    (D) Purchasing test kits, disinfectant, sanitation 
                systems, or hand washing stations.
                    (E) Training relating to--
                            (i) equipment purchased, rented, or leased 
                        with the grant funds; and
                            (ii) new procedures established by the 
                        eligible organization that are supported by the 
                        grant funds.
                    (F) Purchasing and decontaminating personal 
                protective equipment.
                    (G) Purchasing equipment and supplies to facilitate 
                food or meal distribution.
            (4) Ownership of infrastructure, equipment, and supplies.--
        Any infrastructure, equipment, or supplies purchased by an 
        eligible organization using a grant awarded under paragraph 
        (1)--
                    (A) shall be required to support the purposes of 
                the grant but need not be exclusively used for those 
                purposes;
                    (B) shall not have Federal property tracking and 
                inventory requirements applied beyond the end of the 
                grant term; and
                    (C) shall remain under the ownership of the 
                eligible organization for future use or pandemic or 
                food crisis preparedness.
            (5) Public grant announcements.--Not later than 10 days 
        after the date on which a grant is awarded under paragraph (1), 
        the Secretary shall publicly announce the grant on the website 
        of the Food and Nutrition Service, including a summary of the 
        activities funded by the grant and the projected volume of food 
        or meal distribution supported by the grant.
            (6) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $500,000,000 
        to carry out this subsection, of which not more than 3 percent 
        may be used for administrative expenses.
    (e) Outreach.--The Secretary shall conduct outreach to eligible 
organizations, including tribal organizations, that serve underserved 
communities or have minimal or no participation in Federal programs to 
ensure that those organizations are informed of the programs 
established under this section.
    (f) Duplication and Relation to Other Programs.--An eligible 
organization may not receive reimbursements, payments, or grants from 
Federal sources for activities carried out under this section in an 
amount that exceeds 100 percent of the costs incurred by the eligible 
organization in carrying out those activities.
    (g) Additional Funding.--In addition to the funds used under 
subsections (c)(4) and (d)(6), of the funds of the Commodity Credit 
Corporation, the Secretary shall use such sums as are necessary to 
carry out this section.

SEC. 4. FOOD PURCHASE PARTNERSHIPS.

    (a) Definitions.--In this section:
            (1) Eligible feeding organization.--The term ``eligible 
        feeding organization'' means a public or private nonprofit 
        organization (including a tribal organization (as defined in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 5304))), or a restaurant operating an 
        emergency feeding or food relief program, that distributes 
        donated eligible food or meals prepared, at least in part, from 
        eligible food.
            (2) Eligible food.--The term ``eligible food'' means meat, 
        poultry, eggs, fluid milk, dairy products, fruit, vegetables, 
        seafood, and other unprocessed or minimally processed food 
        that--
                    (A) is produced and processed in the United States; 
                and
                    (B) would otherwise be unharvested or surplus if 
                not donated.
            (3) Food value.--The term ``food value''--
                    (A) means the typical wholesale value of food being 
                donated in a nonsurplus situation; and
                    (B) may be adjusted to reflect the typical premium 
                associated with local food, organic food, or other 
                premiums.
            (4) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term ``Indian tribe'' in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304).
            (5) Secretary.--The term ``Secretary'' means the Secretary, 
        acting through the Administrator of the Agricultural Marketing 
        Service.
            (6) State.--The term ``State'' means--
                    (A) each of the several States of the United 
                States;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) the United States Virgin Islands;
                    (E) Guam;
                    (F) American Samoa; and
                    (G) the Commonwealth of the Northern Mariana 
                Islands.
    (b) Establishment; Purposes.--
            (1) Establishment.--Not later than 15 days after the date 
        of enactment of this Act, the Secretary shall establish--
                    (A) the State and Tribal surplus food purchase 
                program in accordance with subsection (c); and
                    (B) the Federal surplus food reimbursement program 
                in accordance with subsection (d).
            (2) Purposes.--The purposes of the programs established 
        under paragraph (1) shall be--
                    (A) to facilitate the purchase and donation of 
                eligible food;
                    (B) to provide nutrition assistance to individuals 
                facing food insecurity;
                    (C) to encourage the use of available 
                infrastructure and resources to respond to COVID-19-
                related food supply chain disruptions; and
                    (D) to reduce food waste.
    (c) State and Tribal Surplus Food Purchase Program.--
            (1) In general.--To advance the purposes described in 
        subsection (b)(2), the Secretary shall carry out a State and 
        Tribal surplus food purchase program, under which the Secretary 
        shall provide funding to States and Indian Tribes to administer 
        a grant or other reimbursement program to purchase surplus 
        eligible food and distribute the food to eligible feeding 
        organizations.
            (2) Instructions.--Not later than 15 days after the date of 
        enactment of this Act, the Secretary shall provide instructions 
        for States and Indian Tribes seeking funding under this 
        subsection.
            (3) Initial application.--
                    (A) In general.--A State or Indian Tribe seeking 
                funding under this subsection shall submit to the 
                Secretary an initial application that--
                            (i) designates the one or more lead 
                        agencies of the State or Indian Tribe for 
                        administering the grant or other reimbursement 
                        program; and
                            (ii) includes a plan for administering the 
                        grant or other reimbursement program in 
                        accordance with paragraph (4).
                    (B) Joint applications.--Two or more States, Indian 
                Tribes, or combinations of States and Indian Tribes--
                            (i) may jointly submit an initial 
                        application under subparagraph (A); and
                            (ii) shall be eligible to receive a 
                        combination of the amounts provided under the 
                        initial allocation under paragraph (5).
            (4) State or tribal plan.--The State or Tribal plan 
        described in paragraph (3)(A)(ii) shall include descriptions 
        of--
                    (A) how the lead agencies of a State or Indian 
                Tribe, or a joint applicant under paragraph (3)(B), 
                will--
                            (i) facilitate connecting producers of 
                        surplus eligible food with eligible feeding 
                        organizations; and
                            (ii) make available to individuals 
                        information relating to how to access food or 
                        meals provided through the program under this 
                        subsection;
                    (B) mechanisms that eligible feeding organizations 
                will use to distribute food and meals under the program 
                under this subsection;
                    (C) how the plan advances the purposes described in 
                subsection (b)(2); and
                    (D) how innovative partnerships with organizations 
                serving at-risk populations or facilities that have 
                unused capacity due to the COVID-19 emergency 
                (including restaurants, hospitality companies, schools, 
                senior centers, afterschool programs, sports franchises 
                or other enterprises, distributors, and other public or 
                private organizations) will be encouraged and supported 
                under the plan.
            (5) Initial allocation.--
                    (A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall distribute 
                $1,000,000,000 to States and Indian Tribes under this 
                subsection.
                    (B) Minimum allocation.--In distributing amounts 
                under subparagraph (A), the Secretary shall allocate 
                not less than--
                            (i) $5,000,000 for each State; and
                            (ii) $200,000 for each Indian Tribe.
                    (C) Formula.--In allocating amounts under 
                subparagraph (B), subject to the limitations described 
                in that subparagraph, the Secretary shall allocate--
                            (i) 50 percent based on--
                                    (I) in the case of States, the 
                                formula used to allocate among States 
                                the commodities and funding available 
                                under the emergency food assistance 
                                program established under the Emergency 
                                Food Assistance Act of 1983 (7 U.S.C. 
                                7501 et seq.), using the most current 
                                data available as of the date of 
                                enactment of this Act; and
                                    (II) in the case of Indian Tribes, 
                                a formula determined by the Secretary, 
                                in consultation with Indian Tribes, 
                                that is based on poverty rates, 
                                unemployment rates, and rates of 
                                participation in Federal feeding 
                                programs; and
                            (ii) 50 percent based on the market value 
                        of agricultural products sold within each State 
                        or Tribal area, including agricultural products 
                        produced by the members of each Indian Tribe or 
                        Tribal businesses or enterprises, weighted such 
                        that \1/4\ of the amount under this clause is 
                        based on each of--
                                    (I) dairy and eggs;
                                    (II) meat and poultry;
                                    (III) vegetables; and
                                    (IV) fruit.
            (6) Reallocation and additional funding.--
                    (A) In general.--The Secretary may--
                            (i) reallocate to States or Indian Tribes 
                        described in subparagraph (B) amounts initially 
                        allocated under this subsection to a State or 
                        Indian Tribe that--
                                    (I) did not submit an application 
                                under paragraph (3); or
                                    (II) did not use the full amount 
                                allocated to the State or Indian Tribe; 
                                and
                            (ii) distribute such sums as are necessary 
                        of the funds of the Commodity Credit 
                        Corporation in addition to the amount made 
                        available under paragraph (5)(A) to States or 
                        Indian Tribes described in subparagraph (B).
                    (B) Additional funding.--The Secretary shall 
                distribute amounts reallocated or distributed under 
                subparagraph (A) to States or Indian Tribes that--
                            (i) demonstrate additional need; or
                            (ii) have leveraged the amounts initially 
                        allocated to the State or Indian Tribe to form 
                        innovative partnerships described in paragraph 
                        (4)(D).
            (7) Administration.--
                    (A) Administrative expenses.--A State or Indian 
                Tribe receiving funding under this subsection may not 
                use more than 8 percent for administrative expenses.
                    (B) No duplication.--The combination of all 
                purchases of eligible food or other reimbursements 
                provided by a State or Indian Tribe for eligible food 
                through a program under this subsection shall not 
                exceed 100 percent of the food value of the eligible 
                food.
    (d) Federal Surplus Food Reimbursement Program.--
            (1) Definitions.--In this subsection:
                    (A) Eligible expenses.--The term ``eligible 
                expenses'' means harvesting, processing, packaging, 
                cold storage prior to delivery to the eligible feeding 
                organization, meeting food safety requirements, 
                repacking, meal preparation, transportation, and 
                related costs, as determined by the Secretary.
                    (B) Eligible food organization.--The term 
                ``eligible food organization'' means--
                            (i) a farming cooperative;
                            (ii) a farmers organization, food hub, food 
                        distributor, majority-controlled producer-based 
                        business venture (as defined in section 210A(a) 
                        of the Agricultural Marketing Act of 1946 (7 
                        U.S.C. 1627c(a))), or other food aggregator; 
                        and
                            (iii) a food processor.
                    (C) Eligible partnership.--The term ``eligible 
                partnership'' means a partnership between an eligible 
                food organization and an eligible feeding organization 
                (including any other entity that provides necessary 
                services for the partnership that incurs eligible 
                expenses) in order to prevent food waste and distribute 
                food to individuals experiencing food insecurity.
                    (D) Participating partnership.--The term 
                ``participating partnership'' means an eligible 
                partnership for which the Secretary has approved a 
                reimbursement and distribution plan under paragraph 
                (3)(B).
            (2) Program.--The Secretary shall carry out a Federal 
        surplus food reimbursement program, under which the Secretary 
        shall reimburse participating partnerships to facilitate the 
        donation of surplus eligible food in accordance with this 
        subsection.
            (3) Reimbursement and distribution plans.--
                    (A) In general.--To be eligible to receive a 
                reimbursement under this subsection, an eligible 
                partnership shall submit to the Secretary a 
                reimbursement and distribution plan that--
                            (i) describes the process that the eligible 
                        partnership will use to identify, obtain, 
                        harvest, process, transport, temporarily store, 
                        and distribute eligible food;
                            (ii) includes an estimate of the quantity 
                        and types of eligible food that the eligible 
                        partnership will purchase and donate;
                            (iii) describes the eligible expenses for 
                        which the eligible partnership seeks to be 
                        reimbursed; and
                            (iv) demonstrates experience to comply with 
                        the requirements of this subsection.
                    (B) Review and approval.--On a rolling basis, the 
                Secretary shall--
                            (i) review reimbursement and distribution 
                        plans submitted under subparagraph (A); and
                            (ii) determine whether to approve or 
                        disapprove each of those reimbursement and 
                        distribution plans.
            (4) Reimbursement.--
                    (A) In general.--On receipt of appropriate 
                documentation under subparagraph (B), the Secretary 
                shall reimburse a participating partnership or a member 
                of a participating partnership that has incurred 
                eligible expenses or donated eligible food on a regular 
                basis for qualified expenses described in paragraph 
                (5).
                    (B) Documentation.--
                            (i) In general.--A participating 
                        partnership shall submit to the Secretary such 
                        documentation as the Secretary may require to 
                        demonstrate the qualified expenses described in 
                        paragraph (5).
                            (ii) Verification.--The Secretary may 
                        verify the accuracy of documentation submitted 
                        under clause (i) by spot checks and audits.
                    (C) Retroactive reimbursement.--In providing 
                reimbursements under subparagraph (A), the Secretary 
                may provide reimbursements for qualified expenses 
                described in paragraph (5)--
                            (i) incurred before the date on which the 
                        reimbursement and distribution plan for the 
                        applicable participating partnership was 
                        approved by the Secretary; and
                            (ii) relating to purchases and donations 
                        made during the donation period.
                    (D) Advance payment for eligible expenses.--The 
                Secretary shall provide an advance payment on request 
                of an eligible partnership in an amount equal to the 
                lesser of--
                            (i) 30 percent of the estimated eligible 
                        expenses of the eligible partnership during the 
                        donation period; and
                            (ii) $1,000,000.
            (5) Qualified expenses.--
                    (A) In general.--
                            (i) Amount.--Subject to subparagraphs (B) 
                        and (C), the amount of a reimbursement under 
                        paragraph (4) shall be an amount equal to the 
                        sum obtained by adding--
                                    (I) subject to clause (ii), the 
                                eligible expenses of the eligible 
                                partnership during the donation period; 
                                and
                                    (II) the food value of eligible 
                                food donated by the eligible 
                                partnership during the donation period.
                            (ii) Limitation.--The amount of eligible 
                        expenses described in clause (i)(I) shall not 
                        exceed 25 percent of the food value described 
                        in clause (i)(II).
                    (B) Limitation.--The amount of a reimbursement 
                under paragraph (4)--
                            (i) shall not exceed the amount of eligible 
                        expenses that an eligible partnership incurred 
                        during the donation period; and
                            (ii) may be limited by the Secretary based 
                        on prevailing or typical costs for each type of 
                        eligible expense.
                    (C) No duplication.--The combination of all 
                payments or grants provided from all Federal sources to 
                eligible partnership or members of an eligible 
                partnership to reimburse for eligible expenses or food 
                value shall not exceed 100 percent of the eligible 
                expenses or food value.
            (6) Clearinghouse for available food.--To support the 
        program under this subsection, the Secretary shall establish a 
        clearinghouse to collect information from--
                    (A) eligible food organizations that have eligible 
                food to donate; and
                    (B) local and regional eligible feeding 
                organizations that have capacity to receive or 
                distribute additional eligible food.
    (e) Relationship to Other Program.--Notwithstanding any other 
provision of law, funding provided under this section may be used to 
meet matching funds or cost share requirements for any other Federal 
program.
    (f) Prohibition on Resale of Products.--
            (1) In general.--An eligible feeding organization that 
        receives eligible food donated under this section may not sell 
        the eligible food back into a commercial market.
            (2) Prohibition on future participation.--An eligible 
        feeding organization that the Secretary determines has violated 
        paragraph (1) shall not be eligible for any future 
        participation in the programs established under this section.
    (g) Administration.--
            (1) In general.--The Secretary shall publicize 
        opportunities to participate in the programs established under 
        this section.
            (2) Administrative expenses.--The Secretary may use for 
        administrative expenses not more than 3 percent of the funds 
        made available to carry out this section.
            (3) Outreach.--The Secretary shall ensure that farmers and 
        ranchers who are minorities, women, young, or veterans, and any 
        eligible feeding organizations that serve those farmers and 
        ranchers or food insecure populations, are informed of 
        opportunities through the programs under this section.
    (h) Reviews.--The Secretary shall conduct appropriate reviews or 
audits to ensure the integrity of the programs established under this 
section.
    (i) Reports.--
            (1) State and tribal surplus food purchase program.--Every 
        30 days, the Secretary shall submit to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and the 
        Committee on Agriculture of the House of Representatives a 
        report describing, with respect to the State and Tribal surplus 
        food purchase program under subsection (c)--
                    (A) the funding made available to States and Indian 
                Tribes; and
                    (B) a summary of the reviews or audits conducted by 
                the Secretary under subsection (h), including a 
                description of--
                            (i) each review or audit conducted; and
                            (ii) the findings of each review or audit 
                        conducted.
            (2) Federal surplus food reimbursement program.--Every 30 
        days, the Secretary shall submit to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and the 
        Committee on Agriculture of the House of Representatives a 
        report describing, with respect to the Federal surplus food 
        reimbursement program under subsection (d)--
                    (A) payments made under that program--
                            (i) by participating partnership (as 
                        defined in subsection (d)(1)); and
                            (ii) by State; and
                    (B) a summary of the reviews or audits conducted by 
                the Secretary under subsection (h), including a 
                description of--
                            (i) each review or audit conducted; and
                            (ii) the findings of each review or audit 
                        conducted.
    (j) Funding.--In addition to the funds made available under 
paragraphs (5)(A) and (6)(A)(ii) of subsection (c), of the funds of the 
Commodity Credit Corporation, the Secretary shall use such sums as are 
necessary to carry out this section.

SEC. 5. FOOD SUPPLY CHAIN GRANTS AND LOANS.

    (a) Definitions.--In this section:
            (1) Custom establishment.--The term ``custom 
        establishment'' means a very small or custom establishment that 
        is exempt from inspection requirements under the Federal Meat 
        Inspection Act (21 U.S.C. 601 et seq.) pursuant to section 23 
        of that Act (21 U.S.C. 623).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a small or midsized food processor or 
                distributor (including a manufacturer, food hub, custom 
                establishment, business cooperative, and food service 
                provider) with fewer than 1,500 employees;
                    (B) a sole proprietor food business;
                    (C) a producer, an agricultural producer group, a 
                producer cooperative, or a majority-controlled 
                producer-based business venture (as defined in section 
                210A(a) of the Agricultural Marketing Act of 1946 (7 
                U.S.C. 1627c(a)));
                    (D) a farmers market;
                    (E) a farm labor contractor or farm worker 
                organization; and
                    (F) such other similar entities, as determined by 
                the Secretary.
    (b) Establishment.--
            (1) In general.--The Secretary shall establish a program to 
        provide temporary assistance to eligible entities to address 
        and respond to the COVID-19 emergency within the food supply 
        chain through the provision of grants under subsection (d), 
        direct loans under subsection (e), and guaranteed loans in 
        accordance with subsection (f) to eligible entities in 
        accordance with this section.
            (2) Multiple financing tools.--An eligible entity may 
        receive not more than 1 grant, 1 direct loan, and 1 guaranteed 
        loan under this section.
    (c) Purpose and Uses of Assistance.--An eligible entity that 
receives a grant, direct loan, or guaranteed loan under this section 
shall use the amounts received under the grant, direct loan, or 
guaranteed loan for the purpose of responding to the COVID-19 emergency 
by building flexibility into the food supply chain and incentivizing 
creative economic solutions to strengthen the farm economy and 
agricultural communities, protect workers, and minimize food waste 
through any of the following uses:
            (1) Retooling processing lines.
            (2) Purchasing packaging materials and food labels.
            (3) Developing new food products to meet a change in 
        demand.
            (4) Converting industrial-sized products to consumer-sized 
        products.
            (5) Upgrading technology, software, and computers.
            (6) Purchasing temporary space or holding pens, dry or cold 
        storage, equipment, or transportation services or equipment.
            (7) Developing and disseminating educational materials 
        relating to COVID-19 protective measures.
            (8) Purchasing test kits or equipment to screen the body 
        temperature of employees for the presence of COVID-19, 
        disinfectant, sanitation systems, or hand washing stations.
            (9) Purchasing and decontaminating personal protective 
        equipment.
            (10) Providing other measures to protect workers against, 
        or aid in preventing the spread of, COVID-19.
            (11) In the case of a grant under subsection (d), 
        repaying--
                    (A) a direct loan made under subsection (e); or
                    (B) a loan guaranteed in accordance with subsection 
                (f).
    (d) Grants.--
            (1) Applications.--
                    (A) In general.--An eligible entity desiring to 
                receive a grant under this subsection shall submit to 
                the Secretary an application in accordance with an 
                application process established by the Secretary.
                    (B) Simplified application process.--In 
                establishing the application process under subparagraph 
                (A), the Secretary shall establish a simplified, 
                separate application process for eligible entities 
                requesting less than $100,000 in grants.
            (2) Requirement.--Subject to paragraphs (3) and (4), the 
        Secretary shall provide grants under this subsection in the 
        order in which the Secretary receives applications submitted in 
        accordance with paragraph (1).
            (3) Priority.--The Secretary shall give priority to 
        applications submitted under paragraph (1) that include, at 
        least in part, the use of the grant amount for purchases 
        described in paragraphs (8) and (9) of subsection (c).
            (4) Reservation.--Of the amount made available for grants 
        under this section, 10 percent shall be reserved for grants 
        provided to beginning, veteran, or socially disadvantaged 
        farmers, ranchers, or businesses.
            (5) Maximum amount.--The amount of a grant under this 
        subsection shall be not more than $1,000,000.
    (e) Rapid Response Direct Loans.--
            (1) Applications.--An eligible entity desiring to receive a 
        direct loan under this subsection shall submit to the Secretary 
        an application in accordance with an application process 
        established by the Secretary in accordance with this 
        subsection.
            (2) Provision of amounts.--Subject to paragraph (3), not 
        later than 3 business days after the date on which the 
        Secretary receives an application in accordance with paragraph 
        (1), the Secretary shall provide the amount under the 
        applicable direct loan to the applicable eligible entity.
            (3) Verification; requirements.--
                    (A) Verification.--Before providing amounts under 
                paragraph (2), the Secretary shall verify that the 
                applicant is an eligible entity by accepting a self-
                certification from the applicant under penalty of 
                perjury pursuant to section 1746 of title 28, United 
                States Code.
                    (B) Basis of approval.--The Secretary may approve 
                an applicant for a direct loan under this subsection 
                based solely on--
                            (i) the credit score of the applicant; or
                            (ii) the verification under subparagraph 
                        (A).
                    (C) Underwriting requirements.--The Secretary shall 
                not require an applicant for a direct loan under this 
                subsection--
                            (i) to submit a tax return or a tax return 
                        transcript for approval; or
                            (ii) to provide collateral or a personal 
                        guarantee.
                    (D) Interest rate.--The interest rate for a direct 
                loan under this subsection shall be 2.375 percent.
                    (E) Fee waiver.--Any otherwise applicable fees 
                shall not be required for a direct loan under this 
                subsection.
            (4) Certain applicants.--To the extent practicable, 
        notwithstanding paragraph (3)(B)(i), the Secretary shall accept 
        applicants with lower credit scores, as necessary to ensure 
        that eligible entities that are socially disadvantaged, small 
        businesses, or located in underserved communities that have a 
        high poverty rate have an opportunity to receive a direct loan 
        under this subsection.
            (5) Maximum amount.--The amount of a direct loan under this 
        subsection shall be not more than $50,000.
    (f) Guaranteed Loans.--
            (1) In general.--The Secretary may guarantee a loan under 
        subsections (a)(2)(A) and (g) of section 310B of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1932) to 
        an eligible entity that verifies that the amounts under the 
        loan will be used for--
                    (A) the purpose described in subsection (c); and
                    (B) any of the uses described in paragraphs (1) 
                through (10) of that subsection.
            (2) Requirements.--Notwithstanding any otherwise applicable 
        requirements under subsections (a)(2)(A) and (g) of section 
        310B of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1932), the following provisions shall apply to 
        guaranteed loans under this subsection:
                    (A) Nonapplicability of rural requirements.--The 
                Secretary shall guarantee loans under this subsection 
                without regard to any requirement under any other 
                provision of law that an eligible entity be located in, 
                or serve, a rural area.
                    (B) 1-time fee.--Notwithstanding section 310B(g)(5) 
                of the Consolidated Farm and Rural Development Act (7 
                U.S.C. 1932(g)(5)), the Secretary may assess a 1-time 
                fee for a guaranteed loan under this subsection in an 
                amount that does not exceed 1 percent of the guaranteed 
                principal portion of the loan.
                    (C) Maximum amount.--The amount of a loan guarantee 
                under this subsection shall be not more than--
                            (i) 100 percent of the amount of a loan 
                        that is not more than $5,000,000; and
                            (ii) 90 percent of the amount of a loan 
                        that is more than $5,000,000 and not more than 
                        $25,000,000.
                    (D) Limitation.--The Secretary shall not guarantee 
                a loan under this subsection that is more than 
                $25,000,000.
                    (E) Interest rate.--The interest rate for a loan 
                guaranteed under this subsection shall be not more than 
                4 percent.
                    (F) Other fees.--Except as provided in subparagraph 
                (B), the Secretary shall waive any otherwise applicable 
                fees for a loan guaranteed under this subsection, 
                including--
                            (i) an initial guarantee fee (other than 
                        the fee described in subparagraph (B)) that is 
                        paid at the time the loan note guarantee is 
                        issued;
                            (ii) an annual renewal fee on the 
                        outstanding balance of a loan guarantee; and
                            (iii) any customary borrower or lender 
                        fees.
                    (G) Working capital loans.--In the case of a 
                guaranteed loan under this subsection for the financing 
                of working capital--
                            (i) the Secretary shall waive any otherwise 
                        applicable collateral requirements; and
                            (ii) the maximum term of the loan shall be 
                        10 years.
                    (H) Underwriting requirements.--The Secretary shall 
                waive the following underwriting requirements for loans 
                guaranteed under this subsection:
                            (i) Any required feasibility studies by 
                        independent consultants.
                            (ii) Any requirements for applicants to 
                        provide a tangible balance sheet equity 
                        position of 10 percent or more for existing 
                        businesses at loan closing or project 
                        completion.
    (g) Technical Assistance Grants.--The Secretary shall award 
competitive grants to land-grant colleges and universities, local 
offices of the Cooperative Extension System, State departments of 
agriculture, and other technical service providers to provide to 
eligible entities technical assistance, rapid training, and outreach to 
develop new food products or adjust business models to respond to the 
COVID-19 emergency.
    (h) Expiration of Authority.--The authority of the Secretary to 
provide a grant, direct loan, or guaranteed loan under this section 
shall remain available until the date on which the COVID-19 emergency 
is lifted.
    (i) Funding.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use $5,500,000,000 to carry 
        out this section.
            (2) Grants.--Of the amount made available under paragraph 
        (1), the Secretary shall use $2,000,000,000 to provide grants 
        under subsection (d).
            (3) Rapid response direct loans.--Of the amount made 
        available under paragraph (1), the Secretary shall use 
        $1,000,000,000 to provide direct loans under subsection (e).
            (4) Guaranteed loans.--Of the amount made available under 
        paragraph (1), the Secretary shall use $2,500,000,000 to 
        guarantee loans under subsection (f).
            (5) Technical assistance grants.--Of the amount made 
        available under paragraph (2), the Secretary shall use 5 
        percent to carry out subsection (g).

SEC. 6. ADMINISTRATION.

    (a) In General.--The administration of this Act, including the 
promulgation of regulations to carry out this Act, shall be without 
regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code; and
            (2) chapter 35 of title 44, United States Code.
    (b) Authorities.--The authorities in this Act are in addition to 
other authorities of, and amounts administered by, the Secretary.
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