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Title II — Other urban agriculture programs

H.R. 5266 · 116th Congress · Nov 26, 2019 · Lineage

II Other urban agriculture programs

Sec. 201 Urban agriculture microentrepreneur assistance program

(a)
Definitions— In this section:
(1)
Indian tribe— The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(2)
Microentrepreneur— The term microentrepreneur means an owner and operator, or prospective owner and operator, of an urban agriculture-related microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this section, as determined by the Secretary.
(3)
Microenterprise development organization— The term microenterprise development organization means an organization that—
(A)
is—
(i)
a nonprofit entity;
(ii)
an Indian tribe, if the tribal government of which certifies to the Secretary that—
(I)
no microenterprise development organization serves the Indian tribe; and
(II)
there is no urban microentrepreneur assistance program under the jurisdiction of the Indian tribe; or
(iii)
a public institution of higher education;
(B)
provides training and technical assistance to microentrepreneurs;
(C)
facilitates access to capital or another service described in subsection (b) for urban microenterprises; and
(D)
has a demonstrated record of delivering services to microentrepreneurs, or an effective plan to develop a program to deliver services to microentrepreneurs, as determined by the Secretary.
(4)
Microloan— The term microloan means a business loan of not more than $75,000 that is provided to a microenterprise.
(5)
Program— The term program means the urban agriculture microentrepreneur assistance program established under subsection (b).
(6)
Urban agriculture microenterprise— The term urban agriculture microenterprise means an entity that—
(A)
is—
(i)
a sole proprietorship located in a urban area as defined by the Census Bureau; or
(ii)
a business entity with not more than 10 full-time equivalent employees located in a urban area; and
(B)
is engaged in agriculture production and attendant activities, such as harvesting, packing, and minimal processing.
(b)
Urban agriculture microentrepreneur assistance program—
(1)
Establishment— The Secretary shall establish an urban agriculture microentrepreneur assistance program to provide loans and grants to support microentrepreneurs in the development and ongoing success of urban agriculture microenterprises.
(2)
Purpose— The purpose of the program shall be to provide microentrepreneurs with—
(A)
the skills necessary to establish new urban agriculture microenterprises; and
(B)
continuing technical and financial assistance related to the successful operation of urban agriculture microenterprises.
(3)
Loans—
(A)
In general— The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed interest rate microloans to microentrepreneurs for startup and growing urban agriculture microenterprises.
(B)
Loan terms— A loan made by the Secretary to a microenterprise development organization under this paragraph shall—
(i)
be for a term not to exceed 20 years; and
(ii)
bear interest at a rate of at least 1 percent per year.
(C)
Loan loss reserve fund— The Secretary shall require each microenterprise development organization that receives a loan under this paragraph to—
(i)
establish a loan loss reserve fund; and
(ii)
maintain the reserve fund in an amount equal to at least 5 percent of the outstanding balance of the loans owed by the organization, until all obligations owed to the Secretary under this paragraph are repaid.
(D)
Deferral of interest and principal— The Secretary may permit the deferral of payments on principal and interest due on a loan to a microenterprise development organization made under this paragraph for a 2-year period beginning on the date the loan is made.
(4)
Grants—
(A)
Grants to support urban agriculture microenterprise development—
(i)
In general— The Secretary shall make grants to microenterprise development organizations to—
(I)
provide training, operational support, business planning, and market development assistance, and other related services to urban agriculture microentrepreneurs; and
(II)
carry out such other projects and activities as the Secretary determines appropriate to further the purposes of the program.
(ii)
Selection— In making grants under clause (i), the Secretary shall—
(I)
place an emphasis on microenterprise development organizations that serve microentrepreneurs that are located in areas of concentrated poverty with limited access to fresh locally or regionally grown foods, as determined by the Secretary; and
(II)
ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations—
(aa)
of varying sizes; and
(bb)
that serve racially and ethnically diverse populations.
(B)
Grants to assist microentrepreneurs—
(i)
In general— The Secretary shall make grants to microenterprise development organizations to provide marketing, management, and other technical assistance to microentrepreneurs that received or are seeking a loan from the organization under paragraph (3).
(ii)
Maximum amount of grant— A microenterprise development organization shall be eligible to receive an annual grant under this subparagraph in an amount equal to not more than 25 percent of the total outstanding balance of microloans made by the organization under paragraph (3), as of the date the grant is awarded.
(C)
Administrative expenses— Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph may be used to pay administrative expenses.
(c)
Administration—
(1)
Cost share—
(A)
Federal share— Subject to subparagraph (B), the Federal share of the cost of a project funded under this section shall not exceed 75 percent.
(B)
Matching requirement— As a condition of any grant made under this subparagraph, the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant in the form of matching funds, indirect costs, or in-kind goods or services.
(C)
Form of non-federal share— The non-Federal share of the cost of a project funded under this section may be provided—
(i)
in cash, including through fees, grants (including community development block grants provided by the Department of Housing and Urban Development), and gifts; or
(ii)
in the form of in-kind contributions.
(2)
Oversight— At a minimum, not later than December 1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall be required to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made.
(d)
Funding—
(1)
Mandatory funding— Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $3,000,000 for fiscal year 2019 and each fiscal year thereafter, which shall remain available until expended.
(2)
Discretionary funding— In addition to amounts made available under paragraph (1), there are authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2019 and each fiscal year thereafter.

Sec. 202 Community Food Project Grant Program

Section 25(b)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2034(b)(2)) is amended—
(1)
in subparagraph (C) striking “and” at the end;
(2)
in subparagraph (D) by striking “each fiscal year thereafter.” and inserting “; and”; and
(3)
by adding at the end the following:

“(E) $15,000,000 for fiscal year 2020 and each fiscal year thereafter.”

Sec. 203 Purchases of locally produced foods

Section 9(j)(3) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)(3)) is amended—
(1)
by striking “Program, to use a geographic preference” and inserting the following:

“(A) to use a geographic preference”

(2)
by adding at the end the following:

“(B) to use locally grown, locally raised, or locally caught as a product specification.”

Sec. 204 Farm to school program

Section 18(g) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(g)) is amended—
(1)
in paragraph (5)—
(A)
by striking “To the maximum” and inserting:

“(A) In general—To the maximum extent”

(B)
in subparagraph (F), by striking “and” at the end;
(C)
by redesignating subparagraphs (A) through (F) as clauses (i) through (vi) and adjusting the margins accordingly;
(D)
by redesignating subparagraph (G) as clause (viii); and
(E)
by inserting after clause (vi), as so redesignated, the following:

“(vii) expand the selection of local agricultural products for eligible schools; and”

(2)
in paragraph (8)(A), by striking “$5,000,000” and inserting “$15,000,000”.