7 U.S. Code § 940c

7 U.S. Code § 940c is about Rural development loans and grants. It is under Subchapter III (Rural Electric And Telephone Direct Loan Programs) of Chapter 31 (Rural Electrification And Telephone Service) of Title 7 (Agriculture) of the Code.

a)In general
The Secretary shall provide grants or zero interest loans to borrowers under this chapter for the purpose of promoting rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development.[1]

(b)Repayments
In the case of zero interest loans, the Secretary shall establish such reasonable repayment terms as will encourage borrower participation.

(c)Proceeds
All proceeds from the repayment of such loans made under this section shall be returned to the subaccount that the Secretary shall maintain in accordance with sections 940c(b)(2) and 940c–2(f) of this title.

(d)Number of grants
Loans and grants required under this section shall be made to the full extent of the amounts made available under subsection (e).

(e)Funding
(1)Discretionary funding
In addition to other funds that are available to carry out this section, there is authorized to be appropriated not more than $10,000,000 for each of fiscal years 2019 through 2023 to carry out this section, to remain available until expended.

(2)Mandatory funding
Of the funds of the Commodity Credit Corporation, the Secretary shall credit to the subaccount to use for the cost of grants and loans under this section $5,000,000 for each of fiscal years 2022 through 2024, to remain available until expended.

(3)Other funds
In addition to the funds described in paragraphs (1) and (2), the Secretary shall use, without fiscal year limitation, to provide grants and loans under this section—
(A)the interest differential sums credited to the subaccount described in subsection (c); and
(B)subject to section 940c–1(e)(2) of this title, the fees described in subsection (c)(4) of such section.
(f)Maintenance of account
The Secretary shall maintain the subaccount described in section 940c(b)(2) of this title, as in effect in fiscal year 2017, for purposes of carrying out this section.