LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS.

SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS. (a) Loan Guarantees for Water, Wastewater, and Essential Community Facilities Loans.—Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)) (as amended by section 6006) is amended by adding at the end the following: “(24) Loan guarantees for water, wastewater, and essential community facilities loans.— “(A) In general.—The Secretary may guarantee a loan made to finance a community facility or water or waste facility project in a rural area, including a loan financed by the net proceeds of a bond described in section 142(a) of the Internal Revenue Code of 1986. “(B) Requirements.—To be eligible for a loan guarantee under subparagraph (A), an individual or entity offering to purchase the loan shall demonstrate to the Secretary that the person has— “(i) the capabilities and resources necessary to service the loan in a manner that ensures the continued performance of the loan, as determined by the Secretary; and “(ii) the ability to generate capital to provide borrowers of the loan with the additional credit necessary to properly service the loan.”. (b) Loan Guarantees for Certain Loans.—Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at the end the following: “(h) Loan Guarantees for Certain Loans.—The Secretary may guarantee loans made under subsection (a) to finance the issuance of bonds for the projects described in section 306(a)(24).”.