H.R. 7483 – Flexible Financing for Rural America Act of 2020


This bill allows rural utility service providers to submit to the Department of Agriculture (USDA) a request to adjust the interest rate or modify the terms of certain loans. The request shall include a report summarizing how the adjustment or modification will assist the borrower in providing critical utility services to a rural community.

Specifically, on receipt of a request, USDA must

  • adjust the interest rate on the loan to match certain interest rates in effect when the bill is enacted for obligations of comparable maturity to the term remaining on the loan (or a higher rate requested by the borrower), and
  • make modifications to the loan terms as necessary to address changes in the financial position of the borrower due to the COVID-19 (i.e., coronavirus disease 2019) public health emergency and to promote the financial sustainability of the borrower.

In carrying out the adjustments or modifications, USDA shall not impose or collect any fee from, or impose any penalty on, a borrower.

The bill also provides funding to implement the adjustments and modifications.(Cosponsors)

ANGIE CRAIG’S POSITION: Representative Craig co-sponsored the bill on 09/08/20.

STATUS: Introduced 7/2/20 by Rep. Hartzler, Vicky [R-MO-4


  • Today, Congresswoman Vicky Hartzler (MO-04) introduced the Flexible Financing for Rural America Act of 2020 along with Rep. Tom O’Halleran (AZ-01). Senators John Hoeven (R-ND), Boozman (R-AK), Smith (D-MN), and Sinema (D-AZ) have introduced the companion bill in the Senate.

    This bill allows certain rural utility service (RUS) borrowers to take advantage of current low- interest rates without hefty fines and penalties. This move allows important electric cooperatives and small, rural telecommunications providers to refinance their debt and help keep critical rural utility providers financially solvent in the face of the COVID-19 pandemic.

    Specifically, the bill:

    1. Allows RUS borrowers of qualified loans to request rate adjustments that would be set at the rate determined by the date of enactment and based on the time remaining on the loan.
    2. Allows RUS borrowers to request additional adjustments if deemed necessary due to COVID-19.
    3. Waives all fees associated with the borrower’s request for adjustments.

    “This legislation will be an important tool in ensuring our rural utility providers can withstand financial realities precipitated by the COVID-19 pandemic and allow them to reinvest in the future of rural America. Those of us who proudly live in rural communities depend heavily on these providers as they serve critically important points of service such as local hospitals, emergency response teams, and schools. This bill ensures rural families are able to remain connected with affordable rates during this pandemic. I thank my colleagues in joining me to address the essential needs of rural America in a bipartisan, bicameral manner,” Hartzler said.

    “Rural electric utility and telecommunications providers are working around the clock to keep families across America connected to telehealth, education, and loved ones during these difficult times. I am proud to join my colleagues to introduce this bipartisan bill that helps rural electric utility and telecommunications companies financially recover from the toll COVID-19 has taken and reinvest in the communities they serve and come back even stronger for rural America,” O’Halleran said.

    Unlike many other types of federal loans, RUS Rural Telecom and Electric Programs loans cannot be repaid early or modified without substantial penalty, making refinancing a RUS loan too costly of an option for borrowers and leaving them holding debt with interest rates significantly higher than those of today. These costs are then passed on to consumers and limit needed infrastructure investments in rural communities.

    The Flexible Financing for Rural America Act has received broad support from rural utility providers and the overall private industry, including the NTCA – Rural Broadband Association, the National Rural Electric Cooperative Association, and the Association of Missouri Electric Cooperatives.

    “Hundreds of NTCA members have answered the call in committing to keep Americans connected in the most rural and remote parts of the country. These companies and cooperatives will of course do everything within their power to keep delivering on the promise of connectivity for the communities in which they live and serve. At the same time, the economic impacts of the ongoing pandemic make it a challenge for smaller rural operators to sustain services. This critical legislation would help many of our members continue responding to their customers’ needs and building Smart Rural Communities℠ even during this time of crisis,” Shirley Bloomfield, CEO of NTCA said.

    “America’s electric cooperatives face significant financial shortfalls due to the ongoing pandemic. Despite that, electric cooperatives are working to help their communities by working with co-op consumer-members on extended payment plans, accelerating cash back programs, and expanding broadband access. Economic development has been part of electric co-ops’ DNA for decades and that element of community leadership will be critical as communities rebound from the public health emergency. This essential legislation will give co-ops the flexibility to manage financial shortfalls and focus on the long-term stability of the communities they serve,” Jim Matheson, CEO of NRECA said.

    “Missouri’s electric cooperatives have dedicated themselves to keeping the lights on, while working to protect employees and members during the COVID-19 pandemic. Our co-ops also have been working with members to address financial hardships. This important legislation will save Missouri co-ops nearly $43 million annually, putting them in a much stronger position to continue serving their members,” Caleb Jones, CEO of AMEC, said.

    (Source: Rep. Vicky Hartzler Press Release, 07/02/20)


Link to the text of the bill.

Link to bill information (support and opposition) on Causes.com.

Link to bill information on GovTrack.