FSA Loan Eligibility
FSA Loan Eligibility — Statutory term limits restrict borrower eligibility for Farm Service Agency (FSA) direct or guaranteed loans regardless of borrowers' ability to obtain other credit. Limitations also restrict borrowers receiving debt write-down to direct or guaranteed annual operating loans. NASDA believes FSA borrowers should be assisted and encouraged to graduate to commercial credit as quickly as possible. However, eligibility should not be determined by arbitrary term limits. NASDA also believes that FSA borrowers who previously filed for bankruptcy should remain eligible for direct and guaranteed operating loans, provided they are current on their loans under their original or revised plan of operation.
FSA may offset government payments to any borrower who is 30 or more days delinquent on loan payments. FSA may offset regardless of payment assignments to other lenders, or whether the borrower has applied for FSA loan servicing. NASDA believes FSA should recognize prior assignments of government payments, and release the proceeds as agreed to in the plan of operation. Further, FSA should not have offset authority until FSA loan servicing actions have been concluded.