Bill Summary
The "Expedited Guaranteed Lender Pilot Program Act" is a legislative proposal aimed at creating a pilot program within the U.S. Department of Agriculture (USDA) to streamline the loan guarantee approval process for borrowers seeking bridge loans. The program focuses on facilitating quicker access to loans for creditworthy borrowers through Preferred Certified Lenders. Key components include:
1. **Pilot Program Implementation**: Within one year of enactment, the USDA Secretary is required to establish an expedited qualification and approval process for guaranteed bridge loans.
2. **Streamlined Assessments**: The program emphasizes reducing the time and complexity involved in making necessary loan certifications and assessments.
3. **Reporting Requirements**: The Secretary must provide an annual report to Congress detailing the program's actions and outcomes, starting one year after enactment.
4. **Time Limitation**: The authority to operate this pilot program will end on September 30, 2031.
5. **Conforming Amendments**: Additional amendments clarify timing requirements for related processes in the existing legislation to ensure they align with the new pilot program.
Overall, the Act aims to enhance access to vital financial resources for rural borrowers while maintaining necessary regulatory standards.
Possible Impacts
Here are three examples of how the "Expedited Guaranteed Lender Pilot Program Act" could affect people:
1. **Access to Financing for Farmers**: The expedited loan guarantee approval process could significantly benefit farmers and rural businesses by making it easier and faster for them to obtain bridge loans. This could help those who need immediate financial support for operational costs, such as purchasing seeds or equipment, during critical periods, ultimately leading to improved agricultural productivity and economic stability in rural communities.
2. **Streamlined Application Process**: By streamlining the qualification and approval process for loans, the legislation could reduce the administrative burden on both borrowers and lenders. This could lead to decreased waiting times for loan approvals, allowing borrowers to access funds more quickly. As a result, creditworthy borrowers may find it easier to manage cash flow during times of financial need, which could enhance their overall financial health.
3. **Increased Confidence Among Lenders**: The establishment of a pilot program with guaranteed loans may encourage more lenders to participate in financing rural development projects. Knowing that the loans are backed by the USDA could reduce risk for lenders, potentially leading to more competitive lending rates. This could result in increased investment in rural areas, benefiting local economies and creating jobs in farming and related industries.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7475 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7475
To establish an expedited guaranteed lender pilot program at USDA.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2026
Mr. Austin Scott of Georgia introduced the following bill; which was
referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To establish an expedited guaranteed lender pilot program at USDA.
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 ``Expedited Guaranteed Lender Pilot
Program Act''.
SEC. 2. EXPEDITED LOAN GUARANTEE APPROVAL PILOT PROGRAM.
(a) In General.--Subtitle D of the Consolidated Farm and Rural
Development Act is amended by inserting after section 333D (7 U.S.C.
1983d) the following:
``SEC. 333E. EXPEDITED LOAN GUARANTEE APPROVAL PILOT PROGRAM.
``(a) In General.--Beginning not later than 1 year after the date
of the enactment of this section, the Secretary shall carry out a pilot
program to establish an expedited qualification and approval process
for borrowers seeking bridge loans guaranteed by the Secretary under
this Act, that are serviced by Preferred Certified Lenders under
section 339(d) and are provided to creditworthy borrowers, as
determined by the Preferred Certified Lender.
``(b) Loan Assessments.--In carrying out this section, the
Secretary shall consider streamlining the process for making
determinations necessary to make the certifications and assessments
referred to in section 339(c)(5) and determinations under section
360(b).
``(c) Rule of Interpretation.--This section shall not be
interpreted to authorize the waiver or modification of any requirement,
other than a timing requirement applicable to application processing,
imposed by or under this Act.
``(d) Report.--Within 1 year after the date of the enactment of
this section, and annually thereafter, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report examining the actions undertaken under, and the results of, the
pilot program.
``(e) Termination of Effectiveness.--The authority provided by this
section shall terminate effective September 30, 2031.''.
(b) Conforming Amendments.--Section 346(b)(2) of such Act (7 U.S.C.
1994(b)(2)) is amended--
(1) in subparagraph (A)(i)(II), by inserting ``, to the
extent practicable'' after ``April 1 of the fiscal year'';
(2) in subparagraph (A)(iii), by inserting ``,to the extent
practicable'' after ``September 1 of the fiscal year''; and
(3) in subparagraph (B)(iii), in the text, by inserting ``,
to the extent practicable'' after ``April 1 of the fiscal
year''.
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