FEDERAL
AGENCY:
FARM
SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
AUTHORIZATION:
Consolidated
Farm and Rural Development Act, as amended.
To
provide a 4 percent subsidy to farmers and ranchers, who do not
qualify for standard commercial credit. Guaranteed loans are serviced
by a lender who has entered into a Lenders Agreement with the agency.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
The
Interest Assistance Program can be provided for Operating Loans
(OL). Under the interest assistance program, FSA will subsidize
4 percent of the interest rate on loans to qualifying borrowers.
Operating Loans (OL) may be used: (1) to finance livestock or farm
equipment; (2) to pay annual operating expenses or family living
expenses; or (3) to refinance debts under certain conditions. Lines
of Credit (LOC) are operating loans for annual operating loan purposes.
Funds may be advanced and repaid (revolve) throughout the year.
The total loan limit for a guaranteed loan cannot exceed $731,000.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Individuals, partnerships, or joint
operations, legal resident aliens, corporations and cooperatives
that meet the eligibility requirements for a guaranteed loan and
are able to project the required cash flow margins with the aid
of interest assistance.
Beneficiary
Eligibility: This program aids both the borrower
and lender by providing 4 percent of the interest costs and receiving
up to a 90 percent guarantee on the loan.
Credentials/Documentation:
None. This program is excluded from coverage under OMB Circular
No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372 and OMB Circular No. A-102.
Application
Procedure: The lender must submit to the agency
on behalf of the applicant, all required forms to the FSA county
office, where the proposed operation will be located. Contact
the lender in your area for completion of all required forms.
Additional information can be obtained by contacting the FSA office
in your local area. Farm Service Agency offices are listed in
the telephone directory under U.S. Government, Department of Agriculture.
Award
Procedure: Not applicable.
Deadlines:
This program expires September 30, 2002. No other deadlines are
applicable. (Food Security Act of 1985, Section 1320).
Range
of Approval/Disapproval Time: One to 30 days.
Appeals:
At the time of any rejection FSA will notify the lender and loan
applicant of appeal rights and procedures.
Renewals:
None.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Not applicable.
Length
and Time Phasing of Assistance: Interest Assistance
agreements will be granted for a term not to exceed 10 years from
the date the first agreement was signed.
POST
ASSISTANCE REQUIREMENTS:
Reports:
The lender is required to file Form FSA 1980-24 annually. This form
will reflect current loan information, request a claim payment and
establish the amount of interest assistance for the next year.
Audits:
FSA will review Form FSA1980-24 annually. In addition, FSA will
require a loan activity summary and calculation of interest charges.
Records:
The type of records required will be on a case-by-case basis.
FINANCIAL
INFORMATION:
Account
Identification: 12-4140-0-3-351; 12-1140-0-1-351.
Obligations:
(Subsidized Guaranteed Operating Loans) FY 01 $802,062,500; FY
02 est 369,105,000; and FY 03 est $231,149,000. There have been
no funds authorized for subsidized Farm Ownership loans.
Range
and Average of Financial Assistance:
$1 to $731,000. Average: $158,000.
PROGRAM
ACCOMPLISHMENTS:
In fiscal year 2001, this program allowed 4,646 family-sized farmers
to continue farming and receive credit from the private sector.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Regulations published at 54 FR 1534, codified in 7 CFR Part 762
and FSA Handbook 2 FLP.
INFORMATION
CONTACTS:
Regional
or Local Office: Farm Service Agency State Offices
can inform applicants of county office locations where applicants
may apply for assistance. FSA State Office locations are listed
in Appendix IV of the Catalog. Or visit the website at: http://www.fsa.usda.gov.
FSA has more than 2,500 county offices serving every rural county
in the United States.
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:
Each loan application will be judged on its own merit and processed
in chronological order.
