H.R. 7426House119th Congress (2025-2027)In Committee

USDA Express Loan Act of 2026

AI-Generated Summary

Updated February 10, 2026 at 10:21 AM UTC

The USDA Express Loan Act of 2026 amends the Consolidated Farm and Rural Development Act to speed up the approval of certain farm and rural business loans and loan guarantees. It introduces a simplified application for small real‑estate and operating loans, sets clear guarantee limits, and requires a quick response from the USDA. It also creates a faster processing system for rural business loans up to $400,000 (or $600,000 in low‑risk cases). The changes affect farmers, ranchers, and rural businesses that seek USDA‑backed financing.

Key Provisions

The USDA must provide lenders with a short, simplified application form for real‑estate and operating guaranteed loans of up to $1 million.
For applications received from a Preferred Certified Lender or Certified Lender, the USDA must notify the lender within five business days whether the loan guarantee is approved or denied.
The maximum guarantee percentage is set at 90% for loans up to $125,000, 75% for loans between $125,001 and $500,000, and 50% for loans between $500,001 and $1 million.
The USDA must create an accelerated application process for business and industry guaranteed loans to rural entities, covering loans up to $400,000 (or up to $600,000 if the loan poses no significant additional default risk).
Section (h) of the referenced part of the Act is removed.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

General Farm Commodities, Risk Management, and Credit Subcommittee

March 20, 2026

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HouseIntro Referral

Introduced in House

February 9, 2026

HouseIntro Referral

Referred to the House Committee on Agriculture.

Agriculture Committee

February 9, 2026

HouseCommittee

Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

General Farm Commodities, Risk Management, and Credit Subcommittee

March 20, 2026

Bill Text

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Introduced in HouseIssued February 9, 2026

119th CONGRESS

2d Session

H. R. 7426

IN THE HOUSE OF REPRESENTATIVES

February 9, 2026

Mr. Finstad (for himself and Mr. Gray) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To amend the Consolidated Farm and Rural Development Act to support the prompt approval of certain loans and loan guarantees, and for other purposes.

Short title

This Act may be cited as the USDA Express Loan Act of 2026.

Prompt approval of loans and loan guarantees

Section 333A of the of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a) is amended—

(1)

in subsection (g)—

(A)

by striking paragraph (1) and inserting the following:

(1)

Real estate and operating guaranteed loans

(A)

In general

The Secretary shall provide to lenders a short, simplified application form for real estate and operating guaranteed loans under this title, for loans of not more than $1,000,000.

(B)

Notice

Within 5 business days after receipt of a complete application to guarantee a farm ownership or operating loan that meets the requirements under subparagraph (A) originated by a Preferred Certified Lender or Certified Lender, the Secretary shall notify the lender as to whether the application is approved or disapproved.

(C)

Maximum guarantee

Notwithstanding any other provision of this Act, the percentage of the principal amount of a loan which may be guaranteed pursuant to this paragraph shall not exceed—

(i)

90 percent, in the case of a loan not exceeding $125,000;

(ii)

75 percent, in the case of a loan of more than $125,000 and not more than $500,000; or

(iii)

50 percent, in the case of a loan of more than $500,000 and not more than $1,000,000.

; and

(B)

by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and inserting after paragraph (1) the following:

(2)

Business and industry guaranteed loans to assist rural entities

(A)

In general

The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of applications for business and industry guaranteed loans to assist rural entities, as described under section 310B(a)(2)(A), for loans not exceeding $400,000.

(B)

Exception

The accelerated application process, as provided under subparagraph (A), shall apply to loans not exceeding $600,000 if there is not a significant increased risk of a default on the loan, as determined by the Secretary.

; and

(2)

by striking subsection (h).