1. U.S. Code
  2. title 7
  3. chapter 50
  4. subchapter V
  5. § 2009g

Collapse to view only § 2009g. Guarantee and commitment to guarantee loans

§ 2009. Definitions
In this subchapter:
(1) State
(2) State director
(Pub. L. 87–128, title III, § 381A, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1139; amended Pub. L. 107–171, title VI, § 6020(b)(2), May 13, 2002, 116 Stat. 363.)

CITE AS: 7 USC 2009

§ 2009a. Establishment

The Secretary shall establish a rural community advancement program to provide grants, loans, loan guarantees, and other assistance to meet the rural development needs of local communities in States and federally recognized Indian tribes.

(Pub. L. 87–128, title III, § 381B, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1139.)

CITE AS: 7 USC 2009a

§ 2009b. National objectives
The national objectives of the program established under this subchapter shall be to—
(1) promote strategic development activities and collaborative efforts by State and local communities, and federally recognized Indian tribes, to maximize the impact of Federal assistance;
(2) optimize the use of resources;
(3) provide assistance in a manner that reflects the complexity of rural needs, including the needs for business development, health care, education, infrastructure, cultural resources, the environment, and housing;
(4) advance activities that empower, and build the capacity of, State and local communities to design unique responses to the special needs of the State and local communities, and federally recognized Indian tribes, for rural development assistance; and
(5) adopt flexible and innovative approaches to solving rural development problems.
(Pub. L. 87–128, title III, § 381C, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1139.)

CITE AS: 7 USC 2009b

§ 2009c. Strategic plans
(a) In general
The Secretary shall direct each of the Directors of Rural Economic and Community Development State Offices to prepare a strategic plan—
(1) for each State for the delivery of assistance under this subchapter in the State; and
(2) for each federally recognized Indian tribe for the delivery of assistance under this subchapter to the Indian tribe.
(b) Assistance
(1) In general
(2) Rural area
(3) Small communities
(c) Review
(d) Contents
A strategic plan of a State or federally recognized Indian tribe under this section shall be a plan that—
(1) coordinates economic, human, and community development plans and related activities proposed for an affected area;
(2) provides that the State or federally recognized Indian tribe, as appropriate, and an affected community (including local institutions and organizations that have contributed to the planning process) shall act as full partners in the process of developing and implementing the plan;
(3) identifies goals, methods, and benchmarks for measuring the success of carrying out the plan and how the plan relates to local or regional ecosystems;
(4) in the case of a State, provides for the involvement, in the preparation of the plan, of State, local, private, and public persons, State rural development councils, federally recognized Indian tribes in the State, and community-based organizations;
(5) identifies the amount and source of Federal and non-Federal resources that are available for carrying out the plan; and
(6) includes such other information as may be required by the Secretary.
(Pub. L. 87–128, title III, § 381D, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1140.)

CITE AS: 7 USC 2009c

§ 2009d. Rural Development Trust Fund
(a) Establishment
(b) Accounts
There are established in the Trust Fund the following accounts:
(1) The rural community facilities account.
(2) The rural utilities account.
(3) The rural business and cooperative development account.
(4) The federally recognized Indian tribe account.
(c) Deposits into accounts
Notwithstanding any other provision of law, each fiscal year—
(1) all amounts made available to carry out the authorities described in subsection (d)(1) for the fiscal year shall be deposited into the rural community facilities account of the Trust Fund;
(2) all amounts made available to carry out the authorities described in subsection (d)(2) for the fiscal year shall be deposited into the rural utilities account of the Trust Fund; and
(3) all amounts made available to carry out the authorities described in subsection (d)(3) for the fiscal year shall be deposited into the rural business and cooperative development account of the Trust Fund.
(d) Function categories
The function categories described in this subsection are the following:
(1) Rural community facilities
The rural community development category consists of all amounts made available for—
(A) community facility direct and guaranteed loans under section 1926(a)(1) of this title; or
(B) community facility grants under paragraph (19), (20), or (21) of section 1926(a) of this title.
(2) Rural utilities
The rural utilities category consists of all amounts made available for—
(A) water or waste disposal grants or direct or guaranteed loans under paragraph (1) or (2) of section 1926(a) of this title;
(B) rural water or wastewater technical assistance and training grants under section 1926(a)(14) of this title;
(C) emergency community water assistance grants under section 1926a of this title; or
(D) solid waste management grants under section 1932(b) of this title.
(3) Rural business and cooperative development
The rural business and cooperative development category consists of all amounts made available for—
(A) business and industry direct and guaranteed loans under section 1932(a)(2)(A) of this title; or
(B) rural business enterprise grants or rural educational network grants under section 1932(c) of this title.
(e) Federally recognized Indian tribe account
(1) Transfers into account
(2) Use of funds
(f) Allocation among States
(g) Availability of funds allocated for States
(Pub. L. 87–128, title III, § 381E, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1140; amended Pub. L. 105–86, title III, Nov. 18, 1997, 111 Stat. 2094; Pub. L. 106–472, title III, §§ 304(b), 305(b), Nov. 9, 2000, 114 Stat. 2071; Pub. L. 107–171, title VI, § 6026(a), May 13, 2002, 116 Stat. 372; Pub. L. 110–234, title VI, § 6012(b)(4), May 22, 2008, 122 Stat. 1165; Pub. L. 110–246, § 4(a), title VI, § 6012(b)(4), June 18, 2008, 122 Stat. 1664, 1927; Pub. L. 115–334, title VI, § 6701(e)(1), Dec. 20, 2018, 132 Stat. 4778.)

CITE AS: 7 USC 2009d

§ 2009e. Transfers of funds
(a) General authority
(b) Limitation
(c) Exceptions
Subsections (a) and (b) shall not apply to a transfer of funds by a State director if the State director certifies to the Secretary that—
(1) there is an approved application for a project in the function category to which the funds are to be transferred but funds are not available for the project in the function category; and
(2)
(A) there is no such approved application in the function category from which the funds are to be transferred; or
(B) the community that would benefit from the project has a smaller population and a lesser per capita income than any community that would benefit from a project in the function category from which the funds are to be transferred.
(Pub. L. 87–128, title III, § 381F, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1142.)

CITE AS: 7 USC 2009e

§ 2009f. Grants to States
(a) Simple grants
(1) Mandatory grant
(2) Permissive grant
(3) Source of funds
(b) Matching grants
(1) In general
(2) Eligibility
A State shall be eligible for a grant under paragraph (1) if the State makes commitments to the Secretary to—
(A) expend from non-Federal sources in accordance with subsection (c) an amount that is not less than 200 percent of the amount of the grant; and
(B) maintain the amounts paid to the State under this subsection and the amount referred to in subparagraph (A) in an account separate from all other State funds until expended in accordance with subsection (c).
(3) Source of funds
(c) Use of funds
(d) Maintenance of effort
(e) Appeals
(f) Administrative costs
(g) Expenditure of funds by State
(1) In general
(2) Failure to obligate
(3) Noncompliance
(A) Review
(B) Penalty
If the Secretary finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing—
(i) the Secretary shall notify the State of the finding; and
(ii) no further payments to the State shall be made with respect to the programs funded under this section until the Secretary is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected.
(C) Other sanctions
(h) No entitlement to contract, grant, or assistance
Nothing in this subchapter—
(1) entitles any person to assistance or a contract or grant; or
(2) limits the right of a State to impose additional limitations or conditions on assistance or a contract or grant under this section.
(Pub. L. 87–128, title III, § 381G, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1143; amended Pub. L. 107–171, title VI, § 6026(c), May 13, 2002, 116 Stat. 372.)

CITE AS: 7 USC 2009f

§ 2009g. Guarantee and commitment to guarantee loans
(a) “Eligible public entity” defined
(b) Guarantee and commitment
(c) Limitation
(d) Payment of principal, interest, and costs
(e) Repayment contract; security
(1) In general
To ensure the repayment of notes or other obligations and charges incurred under this section and as a condition for receiving the guarantees, the Secretary shall require the issuer to—
(A) enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this section;
(B) pledge any grant for which the issuer may become eligible under this subchapter; and
(C) furnish, at the discretion of the Secretary, such other security as may be considered appropriate by the Secretary in making the guarantees.
(2) Security
(f) Pledged grants for repayments
(g) Outstanding obligations
(h) Purchase of guaranteed obligations by Federal Financing Bank
(i) Full faith and credit
(Pub. L. 87–128, title III, § 381H, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1145.)

CITE AS: 7 USC 2009g

§ 2009h. Local involvement

An application for assistance under this subchapter shall include evidence of significant community support for the project for which the assistance is requested. In the case of assistance for a community facilities or infrastructure project, the evidence shall be in the form of a certification of support for the project from each affected general purpose local government.

(Pub. L. 87–128, title III, § 381I, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1146.)

CITE AS: 7 USC 2009h

§ 2009i. Interstate collaboration

The Secretary shall permit the establishment of voluntary pooling arrangements among States, and regional fund-sharing agreements, to carry out projects receiving assistance under this subchapter.

(Pub. L. 87–128, title III, § 381J, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1146.)

CITE AS: 7 USC 2009i

§ 2009j. Annual report
(a) In general
(b) Submission
Not later than March 1 of each year, the Secretary shall—
(1) submit the report required by subsection (a) to Congress and the chief executives of the States participating in the program established under this subchapter; and
(2) make the report available to State and local participants.
(Pub. L. 87–128, title III, § 381K, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1146.)

CITE AS: 7 USC 2009j

§ 2009k. Rural development interagency working group
(a) In general
(b) Duties
(Pub. L. 87–128, title III, § 381L, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1146.)

CITE AS: 7 USC 2009k

§ 2009l. Duties of Rural Economic and Community Development State Offices
In carrying out this subchapter, the Director of a Rural Economic and Community Development State Office shall—
(1) to the maximum extent practicable, ensure that the State strategic plan referred to in section 2009c of this title is implemented;
(2) coordinate community development objectives within the State;
(3) establish links between local, State, and field office program administrators of the Department of Agriculture;
(4) ensure that recipient communities comply with applicable Federal and State laws and requirements; and
(5) integrate State development programs with assistance under this subchapter.
(Pub. L. 87–128, title III, § 381M, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1146.)

CITE AS: 7 USC 2009l

§ 2009m. Electronic transfer

The Secretary shall transfer funds in accordance with this subchapter through electronic transfer as soon as practicable after April 4, 1996.

(Pub. L. 87–128, title III, § 381N, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1147.)

CITE AS: 7 USC 2009m

§ 2009n. Repealed. Pub. L. 107–171, title VI, § 6026(b), May 13, 2002, 116 Stat. 372

CITE AS: 7 USC 2009n