; or (C) an emergency loan under subtitle C of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1961 et seq.). (3) Secretary The term Secretary means the Secretary of Agriculture. (b) Loan forgiveness (1) In general Not later than 1 year after the date on which the Secretary receives an application under paragraph (2), subject to paragraphs (3) and (4), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the date of enactment of this Act on an eligible loan for the eligible borrower. (2) Applications To be eligible for cancellation under paragraph (1), not later than 1 year after the date of enactment of this Act, an eligible borrower shall submit to the Secretary an application, which shall cover all eligible loans for which the eligible borrower is seeking cancellation. (3) Limitations The total amount cancelled under paragraph (1) with respect to a farming operation shall be not more than $250,000. (4) Condition The cancellation of an obligation under paragraph (1) shall be subject to the condition that the applicable eligible borrower shall continue to be actively engaged in farming (within the meaning of section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 )) for the 2-year period beginning on the date on which the Secretary cancels the obligation under that paragraph. (c) Effect An eligible borrower that receives cancellation of an obligation with respect to an eligible loan under subsection (b)(1) shall not be determined to be ineligible for any loan under subtitle A, B, or C of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1922 et seq.) because of that cancellation. (d) Taxability For purposes of the Internal Revenue Code of 1986, any amount which (but for this subsection) would be includible in gross income of the eligible borrower by reason of forgiveness described in subsection (b) shall be excluded from gross income.