DOWN PAYMENT LOAN PROGRAM.

SEC. 5004. DOWN PAYMENT LOAN PROGRAM. Section 310E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935) is amended—(1) in subsection (a)(1), by striking “and ranchers” and inserting “or ranchers and socially disadvantaged farmers or ranchers”;(2) in subsection (b)—(A) by striking paragraph (1) and inserting the following;“(1) Principal.—Each loan made under this section shall be in an amount that does not exceed 45 percent of the least of—“(A) the purchase price of the farm or ranch to be acquired;“(B) the appraised value of the farm or ranch to be acquired; or“(C) $500,000.“(2) Interest rate.—The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of—“(A) the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subtitle; or“(B) 1.5 percent.”; and(B) in paragraph (3), by striking “15” and inserting “20”;(3) in subsection (c)—(A) in paragraph (1), by striking “10” and inserting “5”;(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and(C) in paragraph (2)(B) (as so redesignated), by striking “15-year” and inserting “20-year”;(4) in subsection (d)—(A) in paragraph (3)—(i) by inserting “and socially disadvantaged farmers or ranchers” after “ranchers”; and(ii) by striking “and” at the end;(B) in paragraph (4), by striking “and ranchers.” and inserting “ or ranchers or socially disadvantaged farmers or ranchers; and”; and(C) by adding at the end the following:“(5) establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher.”; and(5) by adding at the end the following:“(e) Socially Disadvantaged Farmer or Rancher Defined.—In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 355(e)(2).”.122 STAT. 1145