USDA Loan Modernization Act

Mike Bost

Republican · IL · Representative

Source: Congress.gov · FEC

• John W. Rose (R-TN-6)Original· 2025-12-17
• Nikki Budzinski (D-IL-13)Original· 2025-12-17
• Eugene Simon Vindman (D-VA-7)· 2026-01-07

Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

2026-05-20

Source: Congress.gov

The proposal would update how the U.S. Department of Agriculture provides loans to farmers and rural businesses by modernizing the application process and loan terms to make it easier for agricultural operations to access funding. Farmers, ranchers, and rural entrepreneurs would benefit from streamlined paperwork and potentially more flexible borrowing options tailored to today's agricultural needs. The changes aim to help both established and beginning farmers compete more effectively while supporting rural economic development.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6779 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6779 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 50 percent interest and that are or will become bona fide operators of the farm real estate acquired, improved, or supported with farm ownership, operating, or emergency loans, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 17, 2025 Mr. Bost (for himself, Ms. Budzinski, and Mr. Rose) introduced the following bill; 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 50 percent interest and that are or will become bona fide operators of the farm real estate acquired, improved, or supported with farm ownership, operating, or emergency loans, 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 ``USDA Loan Modernization Act''. SEC. 2. PERSONS ELIGIBLE FOR REAL ESTATE LOANS. Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended-- (1) in paragraph (1)-- (A) in the matter preceding subparagraph (A), by striking ``a majority'' and inserting ``at least a 50 percent''; and (B) in subparagraph (C), by striking ``a majority'' and inserting ``at least a 50 percent''; and (2) in paragraph (2), by striking subparagraphs (A) and (B) and inserting the following: ``(A) Eligibility of qualified operators.-- Qualified operators, as defined by the Secretary, shall be considered to meet the operator requirement of paragraph (1). ``(B) Eligibility of certain operating-only entities.--An applicant that is or will become only the operator of farm real estate acquired, improved, or supported with funds under this subtitle shall be considered to meet the owner-operator requirements of paragraph (1) if 1 or more of the individuals who is an owner of the farm real estate owns at least 50 percent (or such other percentage as the Secretary determines is appropriate) of the applicant. ``(C) Eligibility of certain embedded entities.--An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (B) of this paragraph that is owned, in whole or in part, by 1 or more other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the total ownership interests of the embedded entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm acquired, improved, or supported with funds under this subtitle.''. SEC. 3. PERSONS ELIGIBLE FOR OPERATING LOANS. Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941) is amended-- (1) in paragraph (1)-- (A) in the matter preceding subparagraph (A), by striking ``a majority'' and inserting ``at least a 50 percent''; and (B) in subparagraph (C), by striking ``a majority'' and inserting ``at least a 50 percent''; and (2) by amending paragraph (2) to read as follows: ``(2) Special rules.-- ``(A) Eligibility of qualified operators.-- Qualified operators, as defined by the Secretary, shall be considered to meet the operator requirement of paragraph (1). ``(B) Eligibility of certain operating-only entities.--An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed…

under paragraph (1) if at least 75 percent of the total ownership interests of the embedded entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm improved or supported with funds under this subtitle.''. SEC. 4. PERSONS ELIGIBLE FOR EMERGENCY LOANS. Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended-- (1) by striking all that precedes ``shall make and insure'' and inserting the following: ``SEC. 321. ELIGIBILITY FOR LOANS. ``(a) In General.-- ``(1) Eligibility requirements.--The Secretary''; and (2) in subsection (a)-- (A) in the 1st sentence-- (i) by striking ``(1)'' and inserting ``(A)''; (ii) by striking ``(2)'' and inserting ``(B)''; (iii) by striking ``(A)'' the 1st place it appears and inserting ``(i)''; (iv) by striking ``(B)'' the 1st place it appears and inserting ``(ii)''; and (v) by striking ``a majority'' each place it appears and inserting ``at least a 50 percent''; (B) by striking the 5th sentence; and (C) by adding at the end the following: ``(2) Special rules.-- ``(A) Eligibility of qualified operators.-- Qualified operators, as defined by the Secretary, shall be considered to meet the operator requirement of paragraph (1). ``(B) Eligibility of certain operating-only entities.--An applicant that is or will become only the operator of farm real estate acquired, improved, or supported with funds under this subtitle shall be considered to meet the owner-operator requirements of paragraph (1) if 1 or more of the individuals who is an owner of the real estate owns at least 50 percent (or such other percentage as the Secretary determines is appropriate) of the applicant. ``(C) Eligibility of certain embedded entities.--An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (B) of this paragraph that is owned, in whole or in part, by 1 or more other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the total ownership interests of the embedded entity, or of the other entities, is owned, directly or indirectly, by qualified operators of the farm acquired, improved, or supported with funds under this subtitle.''. <all>

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