USDA Provides Financial Assistance for Distressed Farm Loan Borrowers
Preventing Foreclosures and Assisting Emergency Loan Borrowers
The United States Department of Agriculture (USDA) is taking action to support distressed farm loan borrowers. The USDA will provide $208 million in financial assistance to prevent guaranteed borrower foreclosures and assist emergency loan borrowers. This assistance is made possible by the Inflation Reduction Act, which has allocated $3.1 billion to help distressed farm loan borrowers.
In an effort to prevent foreclosures, USDA will cover approximately $80 million in delinquencies for 210 borrowers whose qualifying guaranteed loans were flagged for liquidation as of November 30th. Additionally, approximately $128 million will be provided to assist 1,120 borrowers with outstanding direct Emergency Loans as of November 30th.
Addressing Distressed Borrowers in Bankruptcy
Distressed borrowers who qualify for this assistance and are currently in bankruptcy will be addressed through a case-by-case review process. This process was initially announced in October 2022 for complex cases, ensuring that all eligible borrowers receive the necessary support.
Developing More Prevention Options
USDA is actively developing additional options to prevent avoidable guaranteed loan foreclosures. These options will provide further support to distressed borrowers, ensuring their financial stability.
Adjustments for Previous Assistance Recipients
Borrowers who qualify for the current assistance and have also received previous Inflation Reduction Act assistance will have their payments adjusted to account for the previous support. This ensures that borrowers receive the appropriate amount of financial assistance based on their individual circumstances.
Additional Assistance Requests
Distressed borrowers who missed a recent installment or are unable to make their next scheduled installment on a qualifying direct farm loan due to cash flow issues can still request individual assistance. Borrowers who took extraordinary measures to avoid delinquency on their qualifying direct loans are also eligible to apply. More information on eligibility criteria for this assistance can be found at bit.ly/3Rm8T7R.
Submitting Assistance Requests
Borrowers can submit their assistance requests in person at their local USDA Farm Service Agency (FSA) office. Alternatively, they can send a direct request using the extraordinary measures or cash flow-based assistance portals found on the official USDA website at farmers.gov. All requests for extraordinary measures or cash flow-based assistance must be received by December 31st.
Read More of this Story at www.farmweeknow.com – 2023-12-14 01:00:00
Read More US Economic News