H.R. 7426: USDA Express Loan Act of 2026

This bill, known as the USDA Express Loan Act of 2026, aims to amend the existing Consolidated Farm and Rural Development Act to facilitate and streamline the approval process for certain loans and loan guarantees designed to support rural development and agriculture. Here are the key components of the bill:

Loan Application Simplification

The bill requires the Secretary of Agriculture to provide a simplified application form specifically for real estate and operating guaranteed loans that do not exceed $1,000,000. This aims to make it easier for lenders to apply for loans on behalf of farmers and rural businesses.

Timely Responses to Loan Applications

Once a complete application for a farm ownership or operating loan is received from a Preferred Certified Lender or Certified Lender, the Secretary must notify the lender of the approval or disapproval of the application within 5 business days. This is intended to speed up the decision-making process, allowing farmers and rural businesses to access funds more quickly.

Loan Guarantee Percentages

The bill specifies the maximum percentage of the loan principal that can be guaranteed by the Secretary, which differs according to the amount of the loan:

• Up to 90% guaranteed for loans not exceeding $125,000.
• Up to 75% guaranteed for loans greater than $125,000 and not exceeding $500,000.
• Up to 50% guaranteed for loans greater than $500,000 and not exceeding $1,000,000.

Accelerated Business and Industry Loan Processing

The bill also proposes to design an accelerated application process for business and industry guaranteed loans aimed at assisting rural entities. This process will prioritize applications for loans not exceeding $400,000, with the possibility of extending the limit to $600,000 if there is a low risk of loan default, as assessed by the Secretary.

Removal of Redundant Provisions

The bill seeks to remove certain existing provisions that are no longer deemed necessary, specifically targeting subsection (h) of the original law.

Impact on Rural Development

Overall, the USDA Express Loan Act of 2026 is intended to enhance support for rural development by making financial assistance more accessible and responsive to the needs of farmers and rural businesses seeking loans for land and operations.

Relevant Companies

• DE (Deere & Company) - As a major manufacturer of agricultural equipment, Deere may see increased demand for its products due to easier access to loans for farmers looking to expand or improve their operations.
• ADM (Archer-Daniels-Midland Company) - As an agricultural processor and supplier, ADM could benefit from increased agricultural activity resulting from more readily available loans for rural enterprises.
• BG (Bunge Limited) - Similar to ADM, Bunge's business in grain products may see a benefit as farmers gain easier access to necessary funding to support their operations.