SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

SEC. 6019. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES. Section 333A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a) (as amended by section 5307) is amended by striking subsection (g) and inserting the following: “(g) Simplified Application Forms for Loan Guarantees.— “(1) In general.—The Secretary shall provide to lenders a short, simplified application form for guarantees under this title of— “(A) farmer program loans the principal amount of which is $125,000 or less; and “(B) business and industry guaranteed loans under section 310B(a)(1) the principal amount of which is— “(i) in the case of a loan guarantee made during fiscal year 2002 or 2003, $400,000 or less; and “(ii) in the case of a loan guarantee made during any subsequent fiscal year— “(I) $400,000 or less; or “(II) if the Secretary determines that there is not a significant increased risk of a default on the loan, $600,000 or less. “(2) Water and waste disposal grants and loans.—The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of applications for water and waste disposal grants or direct or guaranteed loans under paragraph (1) or (2) of section 306(a) the grant award amount or principal loan amount, respectively, of which is $300,000 or less. “(3) Administration.—In developing an application under this subsection, the Secretary shall— “(A) consult with commercial and cooperative lenders; and “(B) ensure that— “(i) the form can be completed manually or electronically, at the option of the lender; “(ii) the form minimizes the documentation required to accompany the form; “(iii) the cost of completing and processing the form is minimal; and “(iv) the form can be completed and processed in an expeditious manner.”.