DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES.

SEC. 401. DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES. (a) Loan Guarantees.—The Secretary of Agriculture shall guarantee loans made in rural areas to— (1) public, private, or cooperative organizations, to Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups, or to any other business entities to assist such organizations, tribes, or entities in alleviating the distress caused to such organizations, tribes, or entities, directly or indirectly, by the drought, freeze, storm, excessive moisture, or related condition in 1988 or 1989; and (2) such organizations, tribes, or entities that refinance or restructure debt as a result of losses incurred, directly or in-directly, because of such natural disasters in 1988 or 1989. 103 STAT. 584 (b) Eligible Loans.— (1) In general.—Loans guaranteed under this section shall be loans made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, insurance company, or other legally organized lending agency. (2) Production agriculture.—No application for a loan guarantee under this section shall be denied on the basis that such organization, tribe, or entity engages in whole or in part in production agriculture. (c) Loan Guarantee Limits.— (1) Percentage of principal and interest.—No guarantee under this section shall exceed 90 percent of the principal and interest amount of the loan or $2,500,000, whichever is the lesser amount. (2) Total amount.—The total amount of loan guarantee under this section shall not exceed $200,000,000. (d) Use of the Rural Development Insurance Fund.—The Secretary shall use the Rural Development Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a) for the purposes of discharging the obligations of the Secretary under this section.