What does Preamble of USDA Loan Modernization Act do?

This bill proposes to amend the Consolidated Farm and Rural Development Act. The proposed amendment aims to expand eligibility for direct loans. Eligibility would be extended to individuals or entity members holding at least a 50 percent interest. These individuals or entity members must be or become bona fide operators of the farm real estate involved.

What does SHORT TITLE. of USDA Loan Modernization Act do?

This bill is formally titled the USDA Loan Modernization Act.

What does PERSONS ELIGIBLE FOR REAL ESTATE LOANS. of USDA Loan Modernization Act do?

This section amends Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)). It modifies the requirements for eligibility for real estate loans, changing 'a majority' to 'at least a 50 percent' in specific paragraphs. The amendments introduce new subparagraphs (A), (B), and (C) to paragraph (2) regarding the eligibility of qualified operators, operating-only entities, and certain embedded entities. Qualified operators, as defined by the Secretary, are now considered to meet the operator requirement. An applicant that is only an operator of farm real estate can meet owner-operator requirements if an owner of the real estate owns at least 50 percent of the applicant. An embedded entity can meet direct ownership requirements if at least 75 percent of its ownership interests are owned by qualified operators.

What does PERSONS ELIGIBLE FOR OPERATING LOANS. of USDA Loan Modernization Act do?

This section amends Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941). It changes the requirement from 'a majority' to 'at least a 50 percent' in paragraph (1) of Section 311(a). It amends paragraph (2) to establish special rules for operator eligibility. Qualified operators, as defined by the Secretary, are considered to meet the operator requirement. Entities owned, in whole or in part, by other entities can meet the direct ownership requirement if at least 75 percent of the total ownership interests are owned by qualified operators.

What does PERSONS ELIGIBLE FOR EMERGENCY LOANS. of USDA Loan Modernization Act do?

This section amends Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) to modify eligibility requirements for emergency loans. The amendments restructure the eligibility requirements, changing '(1)' to '(A)' and '(2)' to '(B)' within the first sentence of subsection (a). The phrase 'a majority' is replaced with 'at least a 50 percent' in certain instances. A fifth sentence in subsection (a) is removed. New rules are added to address the eligibility of qualified operators, certain operating-only entities, and certain embedded entities. Qualified operators, as defined by the Secretary, are considered to meet the operator requirement. Applicants who are only operators of farm real estate acquired with funds under the subtitle may meet owner-operator requirements if certain ownership percentages are met. Entities owned by qualified operators may meet direct ownership requirements if at least 75% of the ownership interests are owned by qualified operators.

Back to bills

USDA Loan Modernization Act

Last updated: 12/17/2025 · Introduced: 12/17/2025

Author: Mike Bost (R-IL)

TL;DR (AI)

This bill lowers the ownership threshold for farm loan eligibility from a majority to at least 50 percent for real estate, operating, and emergency loans.
It establishes a 'qualified operator' designation, allowing individuals meeting specific criteria defined by the Secretary to satisfy operator requirements for loan eligibility.
The bill creates new rules to permit certain operating-only entities and embedded entities to meet ownership requirements if a significant portion (at least 75 percent) of their ownership is held by qualified operators.

119th Congressin committeeHR. 7567(Passed House)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account