|
 The
simplified direct loan application enables producers to complete
a more streamlined application, reduced from 29 to 13 pages.
Producers will also have the option to complete an electronic
fillable form or prepare a traditional, paper application for
submission to their local FSA farm loan office. The paper and
electronic versions of the form will be available starting March
1, 2023.
Approximately 26,000 producers submit a direct loan application
to the FSA annually, but there is a high rate of incomplete or
withdrawn applications, due in part to a challenging and lengthy
paper-based application process. Coupled with the Loan
Assistance Tool released in October 2022, the simplified
application will provide all loan applicants access to
information regarding the application process and assist them
with gathering the correct documents before they begin the
process. This new application will help farmers and ranchers
submit complete loan applications and reduce the number of
incomplete, rejected, or withdrawn applications.
In October 2022, USDA launched the Loan Assistance Tool, an
online step-by-step guide that provides materials to help an
applicant prepare their farm loan application in one tool.
Farmers can access the Loan Assistance Tool by visiting farmers.gov/farm-loan-assistance-tool
and clicking the ‘Get Started’ button. The tool is built to run
on any modern browser like Chrome, Edge, Firefox, or the Safari
browser. A version compatible with mobile devices is expected to
be available by the summer. It does not work in Internet
Explorer.
The simplified direct loan application and Loan Assistance Tool
are the first of multiple farm loan process improvements that
will be available to USDA customers on farmers.gov in the
future.
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Other improvements that are anticipated to launch in
2023 include:
An interactive online direct loan application that
gives customers a paperless and electronic signature option, along
with the ability to attach supporting documents such as tax
returns.
An online direct loan repayment feature that relieves
borrowers from the necessity of calling, mailing, or visiting a
local Service Center to pay a loan installment.
USDA provides access to credit to approximately 115,000 producers
who cannot obtain sufficient commercial credit through direct and
guaranteed farm loans. With the funds and direction Congress
provided in Section 22006 of the Inflation Reduction Act, USDA took
action in October 2022 to provide relief to qualifying distressed
borrowers while working on making transformational changes to loan
servicing so that borrowers are provided the flexibility and
opportunities needed to address the inherent risks and
unpredictability associated with agricultural operations.
Soon, all direct loan borrowers will receive a letter from USDA
describing the circumstances under which additional payments will be
made to distressed borrowers and how they can work with their FSA
local office to discuss these options. Producers can explore all
available options on all FSA loan options at fsa.usda.gov or by
contacting their local USDA Service Center.
[Illinois / USDA - FPAC] |
