“(A) meet”
“(B) be the owner or operator of not larger than a family farm.”
“(1) In general—Except as provided in paragraph (2), the portion”
“(2) Beginning and socially disadvantaged farmers and ranchers—In the case of beginning farmers or ranchers and socially disadvantaged farmers or ranchers, the portion of the loan the Secretary may guarantee under this section shall be 95 percent of the principal amount of the loan.”
“(h) Funding
“(1) In general—The Secretary may make or guarantee loans under this section for not more than $250,000,000 for each of fiscal years 2013 through 2018, of which, for each fiscal year, not more than 1/2 shall be used for direct loans and not more than 1/2 shall be used for guaranteed loans.
“(2) Qualified beginning farmers and ranchers
“(A) Direct loans—Of the amount made available for direct loans for a fiscal year under paragraph (1), the Secretary shall reserve for qualified beginning farmers and ranchers until April 1 of the fiscal year not less than 50 percent of the amount.
“(B) Guaranteed loans—Of the amount made available for guaranteed loans for a fiscal year under paragraph (1), the Secretary shall reserve for qualified beginning farmers and ranchers until April 1 of the fiscal year not less than 50 percent of the amount.”
“(d) Microloans
“(1) In general—Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans.
“(2) Limitation—The Secretary shall not make or guarantee a microloan under this subsection that—
“(A) exceeds $35,000; or
“(B) would cause the total principal indebtedness outstanding at any time for microloans under this subsection to any one borrower to exceed $70,000.
“(3) Applications—To the maximum extent practicable, the Secretary shall limit the administrative burdens and streamline the application and approval process for microloans under this subsection.
“(4) Cooperative lending projects
“(A) In general—Subject to subparagraph (B), the Secretary may enter into a contract with one or more community-based and nongovernmental organizations, State entities, or other intermediaries, as the Secretary determines appropriate—
“(i) to make or guarantee a microloan under this subsection; and
“(ii) to provide business, financial, marketing, and credit management services to borrowers.
“(B) Requirements—Before entering into a contract with an entity described in subparagraph (A), the Secretary—
“(i) shall review and approve—
“(I) the loan loss reserve fund for microloans established by the entity; and
“(II) the underwriting standards for microloans of the entity; and
“(ii) establish such other requirements for contracting with the entity as the Secretary determines to be necessary.
“(C) Revolving fund—Under such conditions as the Secretary may require, an entity described in subparagraph (A) that enters into a contract with the Secretary under this paragraph may elect to convert the loan loss reserve fund for microloans established by the entity into a revolving loan fund to carry out the purposes of this paragraph.”
“(2) Exceptions—In this subsection, the term direct operating loan shall not include—
“(A) a loan made to a youth under subsection (b); or
“(B) a microloan made to a young beginning farmer or rancher or a military veteran farmer or rancher, as defined by the Secretary.”
“(h) Funding—On October 1, 2013, and on each October 1 thereafter through October 1, 2017, of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $5,000,000, to remain available until expended.”
“(3) Term limits—Subject to paragraph (4), if a farmer or rancher has received a direct operating loan pursuant to this section in each of 9 consecutive years, the farmer or rancher may not receive a direct operating loan from the Secretary under this section for the next year.
“(4) Waivers for farm and ranch operations on tribal land—The Secretary shall waive the limitation under paragraph (3) for a direct loan made under this subtitle to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by one or more security instruments that are subject to the jurisdiction of an Indian tribe if the Secretary determines that commercial credit is not generally available for the farm or ranch operations.”
“(b) Limitation on period borrowers are eligible for guaranteed assistance—If a borrower has received a guaranteed loan under this subtitle in each of 15 consecutive years, the borrower may not receive a loan guaranteed by the Secretary for the next year.”
“(III) Priority—In order to maximize the number of borrowers served under this clause, the Secretary—
“(aa) shall give priority to borrowers who apply under the down payment loan program under section 310E or joint financing arrangements under section 307(a)(3)(D); and
“(bb) may offer other financing options only if the Secretary determines that down payment or other participation loan options are not a viable approach for a particular borrower.”