To enhance the effectiveness of rural business financing programs.

Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to provide rural business loan guarantees and grants to entities in urbanized areas if rural businesses would benefit from use of the financing.

Amends the Farm Security and Rural Investment Act of 2002 to authorize the Secretary to provide renewable energy systems and energy improvement loan guarantees and grants to businesses in urbanized areas if rural businesses would benefit from use of the financing.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4342 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4342

   To enhance the effectiveness of rural business financing programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 16, 2005

 Mr. Andrews introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
   To enhance the effectiveness of rural business financing programs.

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

SECTION 1. AUTHORITY TO PROVIDE CERTAIN RURAL BUSINESS LOAN GUARANTEES 
              AND GRANTS IN URBANIZED AREAS IF RURAL BUSINESSES WOULD 
              BENEFIT FROM THE USE OF THE FINANCING.

    (a) Rural Business and Industry Program.--Section 310B of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended 
by adding at the end the following:
    ``(i) Authority to Provide Certain Loan Guarantees and Grants in 
Urbanized Areas if Rural Businesses Would Benefit From Use of the 
Financing.--The Secretary may provide financing under subsection 
(a)(1), (c), or (d) to any entity located in an urbanized area if the 
entity demonstrates to the Secretary that a rural business would 
benefit from use of the financing.''.
    (b) Renewable Energy Systems and Energy Efficiency Improvements 
Program.--Section 9006 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8106) is amended by adding at the end the following:
    ``(g) Authority to Provide Loan Guarantees and Grants to Businesses 
in Urbanized Areas if Rural Businesses Would Benefit From Use of the 
Financing.--The Secretary may provide a loan guarantee or grant under 
this section to a private business enterprise located in an urbanized 
area if the enterprise demonstrates to the Secretary that a rural 
business would benefit from use of the loan guarantee or grant.''.
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