Rural Economy Act of 1987

Rural Economy Act of 1987 - Title I: General Provisions - Establishes in the Department of Agriculture a Rural Development Financing Authority, headed by an Assistant Secretary of Agriculture appointed by the President, with the advice and consent of the Senate. Authorizes appropriations for the Authority for FY 1988 and subsequent fiscal years.

Authorizes appropriations for FY 1988 and subsequent fiscal years for: (1) the Rural Development Financing Authority; (2) the Rural Development Loan Fund; (3) rural infrastructure grants; (4) basic community facility needs grants; (5) local capacity building grants; (6) rural technology development; (7) one-stop rural financial and technical assistance centers; and (8) State incentive grants.

Title II: Business Development - Subtitle A: General Provisions - Directs the Assistant Secretary to develop a program to provide interest rate subsidies to lenders for loans to private business enterprises in rural areas. Prescribes eligibility requirements for such subsidies.

Sets forth a program of rural industrialization assistance, including: (1) direct and insured loans for private business enterprises encompassing economic and environmental improvement, aquaculture, and solar energy systems; (2) joint loans for such enterprises from specified Federal departments and agencies, State agencies, and private and quasi-public financial institutions; and (3) insured and guaranteed loans for the construction or improvement of subterminal facilities.

Subtitle B: Rural Development Loan Fund - Establishes in the Treasury a Rural Development Loan Fund as a revolving fund to be used for making rural development loans and rural opportunity grants.

Title III: Community Development Assistance for Smaller Communities - Subtitle A: Rural Infrastructure Grants - Directs the Assistant Secretary to make grants to States, territories, and Indian tribes to provide funds for the development of local infrastructure in eligible rural communities. Sets forth allocation and program requirements.

Subtitle B: Basic Community Facility Needs Grants - Directs the Assistant Secretary, in cooperation with the Administrator of the Farmers Home Administration, to make grants to specified associations to test cost-effective methods of meeting the basic needs of residents of rural areas who do not have and cannot afford safe drinking water and wastewater disposal.

Title IV: Capacity Building for Local Development - Directs the Assistant Secretary to make grants to public and nonprofit private institutions: (1) to stimulate local businesses in rural areas affected by recent declines or chronic underdevelopment in basic economic sectors like agriculture; (2) to establish and operate centers of rural technology development in order to promote new processes and products that can be produced in rural areas; and (3) to establish three one-stop rural financial and technical assistance centers.

Title V: State Incentive Grants - Directs the Assistant Secretary to make grants to States to fund the Federal matching contribution for State programs to promote rural development.

Title VI: Administration - Sets forth nondiscrimination provisions and procedures for ensuring compliance and sanctioning noncompliance (including civil actions by the Attorney General).

Sets forth remedies for noncompliance with any provision of this Act, including civil actions by the Attorney General. Provides for judicial review of any termination, reduction, or limitation of payments under this Act.

Requires annual reports to the Congress on progress made in carrying out this Act.