Rural Enterprise Operating Loans.—

Sec. 121. Rural Enterprise Operating Loans.—Section 312 of the Consolidated Farmers Home Administration Act of 1961, as amended by this title, is amended by— (1) inserting “ (a) ” before the first word; and (2) further amending subsection (a) (as so designated by paragraph (1)) by striking out “and (9) for loan closing costs.” and by inserting in lieu thereof the following: “(9) loan closing costs, and (10) for assisting farmers or ranchers in effecting additions to or alterations in the equipment, facilities, or methods of operation of their farms or ranches in order to comply with the applicable standards promulgated pursuant to section 6 of the Occupational Safety and Health Act of 1970 or standards adopted by a State pursuant to a plan approved under section 18 of the Occupational Safety and Health Act of 1970, if the Secretary determines that any such farmer or rancher is likely to suffer substantial economic injury due to such compliance without assistance under this paragraph.” (3) adding at the end of the section new subsections as follows: “(b) Leans may also be made under this subtitle to residents of rural areas without regard to the requirements of clauses (2) and (3) of section 311(a) to operate in rural areas small business enterprises to provide such residents with essential income. “(c) Loans may also be made to eligible applicants under this subtitle for pollution abatement and control projects in rural areas. “(d) The Secretary may make grants, not to exceed $25,000,000 annually, to eligible applicants under this subtitle for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per cent inn of the development cost of such a project.”