WASHINGTON – U.S. Senators Angus King (I-Maine) and Jerry Moran (R-Kan.) have introduced bipartisan legislation to make ownership of homes and farms more affordable for Americans in rural areas. The Access to Credit for our Rural Economy (ACRE) Act of 2023 would give small community banks — like those across Maine — greater flexibility to offer low-interest, affordable loans and mortgages to rural borrowers.

According to 2020 Census data, the legislation would expand access to affordable loans to almost 390 towns and more than 311,000 people in Maine.

“Rural communities across America are facing a serious affordable housing crisis. It has simply gotten way too hard to find reasonably priced homes in our small towns,” said Senator King. “The ACRE Act is a commonsense way to make home and farm ownership possible for more families by providing better access to low interest loans. There’s no one easy solution to our housing affordability problems, but this bipartisan effort would be an important step forward. I appreciate Senator Moran’s partnership and hope we can get this bill passed for rural communities like those in Maine and Kansas.”  

“High inflation and rising interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country,” said Sen. Moran. “Main street lenders must have the flexibility required to provide rural Americans with access to the capital needed to achieve homeownership and continue operating family farms. This legislation will help to boost rural housing and support the agricultural economy that plays a vital role in small towns across America.”

“The ACRE Act will help Maine people and farmers in rural communities, and we’re grateful for Senator King's support.”, said Jim Roche President of the Maine Bankers Association.

The ACRE Act would:

• Grant community banks the same tax exempt status on certain earned interest that applies to farm credit institutions, allowing farm real estate borrowers and rural home owners access to lower interest rates.
• This exemption would also apply to single-family home mortgage loans in rural communities with fewer than 2,500 residents and for mortgages less than $750,000.

A one-pager on this legislation can be found HERE.

Senator King has long been committed to ensuring Maine people across the state can access safe and affordable housing. He recently introduced the bipartisan Affordable Housing Credit Improvement Act to create nearly two million new affordable homes across the country – including thousands in Maine. Additionally, he has worked to expand affordable workforce housing on Mount Desert Island to support the economic development surrounding Acadia National Park.

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