12 2 STA T . 11 4 4 PUBLIC LA W 11 0– 2 3 4 —M A Y 22 , 200 8SEC.50 0 3 . LIM I TA TI ON SONAMO U NTO F FA R MO W NERS H I P LOANS. Section305(a) ( 2 )o f t h e C on s o l i d ated F a rm and Ru ral D e v elo p- ment A ct( 7U. S.C. 19 25(a)(2)) is amended by stri k in g‘ ‘ $ 200 , 000 ’ ’ and inserting ‘‘$300,000’’. SEC. 500 4 . D OWN PA Y MENT LOAN PRO G RAM. Section 310 E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935) is amended — (1) in subsection (a)(1), by striking ‘‘and ranchers’’ and inserting ‘‘or ranchers and socially disadvantaged farmers or ranchers’’
(2) in subsection (b)— (A) by striking paragraph (1) and inserting the fol- lo w ing; ‘‘(1) PRINC I PAL .—Each loan made under this section shall be in an amount that does not e x ceed 4 5 percent of the least of— ‘‘(A) the purchase price of the farm or ranch to be ac q uired; ‘‘( B ) the appraised value of the farm or ranch to be acquired; or ‘‘(C) $500,000. ‘‘(2) I N TE RE S T RATE.— T he interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of— ‘‘(A) the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subtitle; or ‘‘(B) 1.5 percent.’’; and (B) in paragraph (3), by striking ‘‘15’’ and inserting ‘‘20’’; (3) in subsection (c)— (A) in paragraph (1), by striking ‘‘10’’ and inserting ‘‘5’’; (B) by striking paragraph (2) and redesignating para- graph (3) as paragraph (2); and (C) in paragraph (2)(B) (as so redesignated), by striking ‘‘15-year’’ and inserting ‘‘20-year’’; (4) in subsection (d)— (A) in paragraph (3)— (i) by inserting ‘‘and socially disadvantaged farmers or ranchers’’ after ‘‘ranchers’’; and (ii) by striking ‘‘and’’ at the end; (B) in paragraph (4), by striking ‘‘and ranchers.’’ and inserting ‘‘ or ranchers or socially disadvantaged farmers or ranchers; and’’; and (C) by adding at the end the following
‘‘(5) establish annual performance goals to promote the use of the down payment loan program and other j oint financing arrangements as the preferred choice for direct real estate loans made by any lender to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher.’’; and (5) by adding at the end the following: ‘‘(e) S O CIALL Y DISA DV ANTA G ED FAR M ER OR RANC H ER DE F INED.— In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 355(e)(2).’’.
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