Mr. Perez, for himself, submits

A BILL

To enhance the effectiveness of rural business financing programs.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE

This Act may be cited as the `Growth of Rural Businnesses Act'.

SECTION 2. AUTHORITY TO PROVIDE CERTAIN RURAL BUSINESS LOAN GUARANTEES AND GRANTS IN URBANIZED AREAS IF RURAL BUSINESSES WOULD BENEFIT FROM THE USE OF THE FINANCING.

(a) Rural Business and Industry Program- Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at the end the following:

`(i) Authority to Provide Certain Loan Guarantees and Grants in Urbanized Areas if Rural Businesses Would Benefit From Use of the Financing- The Secretary may provide financing under subsection (a)(1), ©, or (d) to any entity located in an urbanized area if the entity demonstrates to the Secretary that a rural business would benefit from use of the financing.'.

(b) Renewable Energy Systems and Energy Efficiency Improvements Program- Section 9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) is amended by adding at the end the following:

`(g) Authority to Provide Loan Guarantees and Grants to Businesses in Urbanized Areas if Rural Businesses Would Benefit From Use of the Financing- The Secretary may provide a loan guarantee or grant under this section to a private business enterprise located in an urbanized area if the enterprise demonstrates to the Secretary that a rural business would benefit from use of the loan guarantee or grant.'.