10.075 Special Apple Program

Loan funds may be used for any of the following purposes related to the production or marketing of apples: Payment of costs associated with reorganizing a farm to improve its profitability; payment of annual farm operating expenses; purchase of farm equipment or fixtures; acquiring, enlarging, or leasing a farm; making capital improvements to a farm Special Apple Program (SAP) funds may be used for real estate purchase, refinancing or improvements, if the loan can be repaid in 3 years); refinancing indebtedness (the debt must have been incurred for a purpose related to the production and marketing of apples); purchase of cooperative stock for credit, production, processing or marketing purposes; or payment of loan closing costs.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   A loan applicant and anyone who will execute the promissory note, including all members of an entity, must meet the following eligibility criteria to obtain a SAP loan. An eligible applicant must not have caused FSA a loss by receiving debt forgiveness; not be delinquent on any Federal debt; not have any outstanding recorded judgments obtained by the United States in a Federal court; be a citizen of the United States or an alien lawfully admitted to the United States for permanent residence; have the legal capacity to incur the obligations of the loan; have an acceptable credit history demonstrated by debt repayment; and has not provided the Agency with false or misleading documents or statements in past or present dealings with the Agency.
Beneficiary Eligibility:   Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Families, individuals and entities who have produced apples in 1999 or 2000 are the beneficiaries.
Credentials/Documentation:   To be eligible, an applicant must have grown apples, in the United States or a United States territory, for market in either 1999 or 2000. In the case of a lease arrangement, the producer and not owner is eligible. The applicant is not required to continue growing apples during the term of the SAP loan.

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APPLICATION AND AWARD PROCESS:

Pre-application Coordination:   None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.
Application Procedure:   Application Form CCC-2651 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant's county. FSA personnel assist applicants in completing their application forms.
Award Procedure:   FSA Farm Loan Officer, Farm Loan Manager, District Directors, State Executive Directors, and the Administrator or his designee are authorized to approve these loans, subject to certain administrative requirements, after applicants are determined eligible.
Deadlines:   Applications will be accepted for SAP assistance until such time as the funding is exhausted. Applicants should consult the FSA county office serving their area for funding availability.
Range of Approval/Disapproval Time:   Applications must be approved or disapproved within 60 calendar days after the receipt of a completed application by the County Office.
Appeals:   Applicants for loans may appeal adverse actions taken. The applicant is given an opportunity to appeal the decision to the National Appeals Division.
Renewals:   Rescheduling, reamortization, consolidation and deferment: The term of the loan will be no more than 3 years from the original date of the note.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: The maximum amount of assistance will be limited by the number of acres in apple production in 1999 or 2000, whichever is greater, multiplied by $300 per acre and no more than $500,000 to any applicant.
Length and Time Phasing of Assistance: This varies in accordance with individual case needs, type of security available, and borrower's repayment ability, but will not be more than 3 years. Applicants should consult the FSA county office serving their area for specific information.

POST ASSISTANCE REQUIREMENTS:

Reports:   Borrowers are required to account for all security property.
Audits:   All account reviews and servicing will be in accordance with FSA's non-program loan requirements found in 7 CFR 1951.468.
Records:   All requirements are in accordance with the Agency's non-program loans.

FINANCIAL INFORMATION:

Account Identification:   12-3302-0-1-351.
Obligations:   (Direct Loans) FY 01 $0; FY 02 est $99,581,000; and FY 03 est $0.
Range and Average of Financial Assistance:   Program is new, there are no existing loans in this program.

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PROGRAM ACCOMPLISHMENTS:

Farm Loan Programs estimates that 60 percent of eligible producers may apply and between 2,000 and 4,000 loans may be closed.

REGULATIONS, GUIDELINES, AND LITERATURE:

Administrative regulations will be published in the Code of Federal Regulations at 7 CFR 773.

INFORMATION CONTACTS:

Regional or Local Office:   Consult the appropriate FSA State office listed in Appendix IV of the Catalog.
Headquarters Office:   Department of Agriculture, Farm Service Agency, Director, Loan Making Division, Ag Box 0522, Washington, DC 20250. Telephone: (202) 720-1632.
Web Site Address:   http://www.fsa.usda.gov/.

EXAMPLES OF FUNDED PROJECTS:

None.

CRITERIA FOR SELECTING PROPOSALS:

Loan applicants will be required to demonstrate repayment and have security available to be eligible for FSA SAP assistance.

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