DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES.

SEC. 331. DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES. (a) Loan Guarantees.—The Secretary of Agriculture shall guarantee loans made in rural areas to 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 them in alleviating distress caused to such entities, directly or indirectly, by the drought, hail, excessive moisture, or related condition in 1988, and shall guarantee loans made in rural areas to such entities that refinance or restructure debt as a result of losses incurred, directly or indirectly, because of such natural disasters in 1988. (b) Eligible Loans.—Loans that may be guaranteed under this section are loans made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, insurance company, or other legally organized lending agency. (c) Lending Limits.—(1) No guarantee under this section may exceed 90 percent of the principal amount of the loan and guarantees made on loans to any eligible borrower may not exceed $500,000. (2) The total amount of loan guarantees that may be made 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 for the purposes of discharging the Secretary’s obligations under this section.