,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #fggi  ,,in ,,the ,,house ,,of  
,,representatives  ,december #ag1       
#bjbe,mr4 ,bost 7for himself1 ,ms4      
,budzinski1 and ,mr4 ,rose7 introduced  
the following bill2 which was referred  
to the ,committee on ,agriculture  ,a   
,,bill  ,to amend the ,consolidated     
,farm and ,rural ,development ,act to   
expand eligibility for direct loans to  
individuals or entity members that hold 
at least a #ej percent interest and that
 are or will become bona fide operators 
of the farm real estate acquired1       
improved1 or supported with farm        
ownership1 operating1 or emergency      
loans1 and for other purposes4  #a4     
,short title ,this ,act may be cited as 
the ,,usda ,loan ,modernization ,act4   
#b4 ,persons eligible for real estate   
loans ,section #cjb7;a7 of the          
,consolidated ,farm and ,rural          
,development ,act 7#g ,u4,s4,c4         
#aibb7;a77 is amended--  7#a7 in        
paragraph 7#a7-- 7,a7 in the matter     

preceding subparagraph 7,a71 by striking
 a majority and inserting at least a #ej
 percent2 and  7,b7 in subparagraph     
7,c71 by striking a majority and        
inserting at least a #ej percent2 and   
7#b7 in paragraph 7#b71 by striking     
subparagraphs 7,a7 and 7,b7 and         
inserting the following3  7,a7          
,eligibility of qualified operators     
,qualified operators1 as defined by the 
,secretary1 shall be considered to meet 
the operator requirement of paragraph   
7#a74  7,b7 ,eligibility of certain     
operating-only entities ,an applicant   
that is or will become only the operator
 of farm real estate acquired1 improved1
 or supported with funds under this     
subtitle shall be considered to meet the
 owner-operator requirements of         
paragraph 7#a7 if #a or more of the     
individuals who is an owner of the farm 
real estate owns at least #ej percent   
7or such other percentage as the        
,secretary determines is appropriate7 of
 the applicant4  7,c7 ,eligibility of   

certain embedded entities ,an entity    
that is an owner-operator described in  
paragraph 7#a71 or an operator described
 in subparagraph 7,b7 of this paragraph 
that is owned1 in whole or in part1 by  
#a or more other entities1 shall be     
considered to meet the direct ownership 
requirement imposed under paragraph 7#a7
 if at least #ge percent of the total   
ownership interests of the embedded     
entity1 or of the other entities1 is    
owned1 directly or indirectly1 by       
qualified operators of the farm         
acquired1 improved1 or supported with   
funds under this subtitle4  4  #c4      
,persons eligible for operating loans   
,section #caa7;a7 of the ,consolidated  
,farm and ,rural ,development ,act 7#g  
,u4,s4,c4 #aida7 is amended--  7#a7 in  
paragraph 7#a7-- 7,a7 in the matter     
preceding subparagraph 7,a71 by striking
 a majority and inserting at least a #ej
 percent2 and  7,b7 in subparagraph     
7,c71 by striking a majority and        
inserting at least a #ej percent2 and   

7#b7 by amending paragraph 7#b7 to read 
as follows3  7#b7 ,special rules  7,a7  
,eligibility of qualified operators     
,qualified operators1 as defined by the 
,secretary1 shall be considered to meet 
the operator requirement of paragraph   
7#a74  7,b7 ,eligibility of certain     
operating-only entities ,an entity that 
is an operator described in paragraph   
7#a7 that is owned1 in whole or in part1
 by other entities1 shall be considered 
to meet the direct ownership requirement
 imposed under paragraph 7#a7 if at     
least #ge percent of the total ownership
 interests of the embedded entity1 or of
 the other entities1 is owned1 directly 
or indirectly1 by qualified operators of
 the farm improved or supported with    
funds under this subtitle4  4  #d4      
,persons eligible for emergency loans   
,section #cba of the ,consolidated ,farm
 and ,rural ,development ,act 7#g       
,u4,s4,c4 #aifa7 is amended-- 7#a7 by   
striking all that precedes shall make   
and insure and inserting the following3 

#cba4 ,eligibility for loans  7a7 ,in   
general  7#a7 ,eligibility requirements 
,the ,secretary  2 and  7#b7 in         
subsection 7a7--  7,a7 in the #ast      
sentence-- 7i7 by striking 7#a7 and     
inserting 7,a72  7ii7 by striking 7#b7  
and inserting 7,b72  7iii7 by striking  
7,a7 the #ast place it appears and      
inserting 7i72  7iv7 by striking 7,b7   
the #ast place it appears and inserting 
7ii72 and  7v7 by striking a majority   
each place it appears and inserting at  
least a #ej percent2  7,b7 by striking  
the #eth sentence2 and  7,c7 by adding  
at the end the following3  7#b7 ,special
 rules  7,a7 ,eligibility of qualified  
operators ,qualified operators1 as      
defined by the ,secretary1 shall be     
considered to meet the operator         
requirement of paragraph 7#a74  7,b7    
,eligibility of certain operating-only  
entities ,an applicant that is or will  
become only the operator of farm real   
estate acquired1 improved1 or supported 
with funds under this subtitle shall be 

considered to meet the owner-operator   
requirements of paragraph 7#a7 if #a or 
more of the individuals who is an owner 
of the real estate owns at least #ej    
percent 7or such other percentage as the
 ,secretary determines is appropriate7  
of the applicant4  7,c7 ,eligibility of 
certain embedded entities ,an entity    
that is an owner-operator described in  
paragraph 7#a71 or an operator described
 in subparagraph 7,b7 of this paragraph 
that is owned1 in whole or in part1 by  
#a or more other entities1 shall be     
considered to meet the direct ownership 
requirement imposed under paragraph 7#a7
 if at least #ge percent of the total   
ownership interests of the embedded     
entity1 or of the other entities1 is    
owned1 directly or indirectly1 by       
qualified operators of the farm         
acquired1 improved1 or supported with   
funds under this subtitle4  4