Flexible Financing for Rural America Act
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.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2244 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2244
To provide for the adjustment or modification by the Secretary of
Agriculture of loans for critical rural utility service providers, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 26, 2021
Mr. O'Halleran (for himself and Mrs. Hartzler) introduced the following
bill; which was referred to the Committee on Agriculture, and in
addition to the Committees on Energy and Commerce, and the Budget, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
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''.
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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Agriculture, and in addition to the Committees on Energy and Commerce, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Agriculture, and in addition to the Committees on Energy and Commerce, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Agriculture, and in addition to the Committees on Energy and Commerce, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Communications and Technology.
Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.
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