Source: USDA, 8/6/20
To assist Farm Storage Facility Loan
(FSFL) borrowers experiencing financial hardship from the pandemic and other
challenges in production agriculture, USDA’s Farm Service Agency (FSA) is
offering a one-time annual installment payment deferral option. No fees or
prepayment penalties apply for borrowers who choose this FSFL loan flexibility
option. “Farmers are facing challenging times because of the pandemic, and FSA is constantly looking for ways to offer flexibilities to our customers to help alleviate financial stressors,” said FSA Administrator Richard Fordyce. “This storage facility loan servicing option affords eligible borrowers more time to make a payment and may stop loan acceleration, foreclosure or liquidation.” Eligible borrowers can request a one-time only annual
installment payment deferral for loans having terms of three, five, seven or
ten years. The installment deferral option is not available for 12-year term
loans. The FSFL installment payments will remain the same, except
for the last year. The original loan interest rate and annual payment due
date will remain the same. However, because the installment payment deferral is
a one-year loan term extension, the final payment will be higher due to
additional accrued interest. Borrowers interested in exercising the one-time annual
installment deferral option should contact FSA to make the request and to
obtain, complete and sign required forms. FSFLs provide low-interest financing for producers to
store, handle and transport eligible commodities. More Information In addition to offering flexibilities for FSFLs, FSA has
also made other flexibilities to help producers impacted by the pandemic,
including relaxing the loan-making process for farm operating and ownership
loans and implementing the Disaster Set-Aside provision that enables an upcoming
installment on a direct loan to be set aside for the year. More information on
these flexibilities can be found at farmers.gov/coronavirus. All USDA Service Centers are open for business, including
some that are open to visitors to conduct business in person by appointment
only. All Service Center visitors wishing to conduct business with the FSA,
Natural Resources Conservation Service or any other Service Center agency
should call ahead and schedule an appointment. Service Centers that are open
for appointments will pre-screen visitors based on health concerns or recent
travel, and visitors must adhere to social distancing guidelines. Visitors may
also be required to wear a face covering during their appointment. Field work
will continue with appropriate social distancing. Our program delivery staff
will be in the office, and they will be working with our producers in office,
by phone and using online tools. More information can be found at farmers.gov/coronavirus. For more information, contact your local USDA Service
Center. To locate your local FSA office, visit farmers.gov/service-center-locator.
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