A bill to amend the Consolidated Farm and Rural Development Act and the Small Business Act.

Summary

Title I: Consolidated Farm and Rural Development Act Amendments - Amends the Consolidated Farm and Rural Development Act to repeal: (1) the low income farm ownership loan program; (2) the maximum five percent interest rate on disaster emergency loans for persons unable to obtain sufficient credit elsewhere; (3) the Secretary of Agriculture's authority to make and insure disaster loans to applicants who can obtain credit elsewhere; and (4) the minimum 25 percent of all insured farm ownership and operating loans reserved for low-income, limited-resource borrowers. Title II: Small Business Act Amendments - Amends the Small Business Act to: (1) specify the availability of Small Business Administration disaster loans to refinance any mortgage or lien against a totally destroyed or substantially damaged home or business concern, under certain conditions; (2) end the availability of loans for economic disasters for natural, physical disasters declared by the Secretary of Agriculture only, or certified to the SBA Administrator by the governor of a State; (3) condition the extension of a loan or guarantee upon the Administrator's finding that reasonable credit is not otherwise available; and (4) modify the formula for the determination of interest rates (currently limited to the average annual interest rate on all interest-bearing obligations of the United States) to allow such rates to rise above a minimum level keyed to the current average market yield on outstanding marketable obligations of the United States, plus a one percent additional charge. Limits the total amount of loans to any borrower to $500,000 for each disaster, unless the borrower constitutes a major source of employment in the disaster area.

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1 official file

• Introduced in House

  summary · EN · 1 May 1981

  Open at official source

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