---
kind: "section"
citation: "7 U.S.C. § 8789"
title: "7"
title_heading: "Agriculture"
number: "8789"
heading: "Storage facility loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/8789"
units:
  - "Chapter 113 — Agricultural Commodity Support Programs"
  - "Subchapter V — Administration"
---

# §8789. Storage facility loans

- (a) **In general—** As soon as practicable after the date of enactment of this Act, the [Secretary](/usc/7/499a.md?p=b-2) shall establish a storage facility loan program to provide funds for [producers](/usc/7/8702.md?p=13-A) of grains, oilseeds, [pulse crops](/usc/7/8702.md?p=14), hay, renewable biomass, and other storable commodities (other than sugar), as determined by the [Secretary](/usc/7/499a.md?p=b-2), to construct or upgrade storage and handling facilities for the commodities.
- (b) **Eligible producers—** A storage facility loan under this section shall be made available to any [producer](/usc/7/8702.md?p=13-A) described in [subsection (a)](#a) that, as determined by the [Secretary](/usc/7/499a.md?p=b-2)—
  - (1) has a satisfactory credit history;
  - (2) has a need for increased storage capacity; and
  - (3) demonstrates an ability to repay the loan.
- (c) **Term of loans—** A storage facility loan under this section shall have a maximum term of 12 years.
- (d) **Loan amount—** The maximum principal amount of a storage facility loan under this section shall be $500,000.
- (e) **Loan disbursements—** The [Secretary](/usc/7/499a.md?p=b-2) shall provide for 1 partial disbursement of loan principal and 1 final disbursement of loan principal, as determined to be appropriate and subject to acceptable documentation, to facilitate the purchase and construction of eligible facilities.
- (f) **Loan security—** Approval of a storage facility loan under this section shall—
  - (1) require the borrower to provide loan [security](/usc/7/24.md?p=b) to the [Secretary](/usc/7/499a.md?p=b-2), in the form of—
    - (A) a lien on the real estate parcel on which the storage facility is located; or
    - (B) such other [security](/usc/7/24.md?p=b) as is acceptable to the [Secretary](/usc/7/499a.md?p=b-2);
  - (2) under such rules and regulations as the [Secretary](/usc/7/499a.md?p=b-2) may prescribe, not require a severance agreement from the holder of any prior lien on the real estate parcel on which the storage facility is located, if the borrower—
    - (A) agrees to increase the down payment on the storage facility by an amount determined appropriate by the [Secretary](/usc/7/499a.md?p=b-2); or
    - (B) provides other [security](/usc/7/24.md?p=b) acceptable to the [Secretary](/usc/7/499a.md?p=b-2); and
  - (3) allow a borrower, upon the approval of the [Secretary](/usc/7/499a.md?p=b-2), to define a subparcel of real estate as [security](/usc/7/24.md?p=b) for the storage facility loan if the subparcel is—
    - (A) of adequate size and value to adequately secure the loan; and
    - (B) not subject to any other liens or mortgages that are superior to the lien interest of the Commodity Credit Corporation.

## Source credit

(Pub. L. 110–234, title I, § 1614, May 22, 2008, 122 Stat. 1020; Pub. L. 110–246, § 4(a), title I, § 1614, June 18, 2008, 122 Stat. 1664, 1748.)

## Notes

### Editorial Notes

### References in Text

The date of enactment of this Act, referred to in subsec. (a), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.