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Source: USDA, 4/15/21
The
American Rescue Plan includes provisions for USDA to pay up to 120% of loan
balances, as of January 1, 2021, for Farm Service Agency (FSA) Direct and
Guaranteed Farm Loans and Farm Storage Facility Loans debt relief to any
socially disadvantaged producer who has a qualifying loan with FSA. This
includes producers who identify as one or more of the following:
Black/African American, American Indian, Alaskan Native, Hispanic/Latino, Asian
American, or Pacific Islander. Since this debt payment will qualify as income,
Congress determined the 20% additional payment is intended to help mitigate
liabilities that occur when clearing a debt, which may include tax liabilities,
among others.Eligible BorrowersEligible borrowers include those who identify as one or
more of the following: Black/African American, American Indian, Alaskan native,
Hispanic/Latino, Asian American, or Pacific Islander. The American Rescue Plan
Act uses Section 2501 of the Food, Agriculture, Conservation, and Trade
Act of 1990 as the definition of Socially Disadvantaged farmers and
ranchers. If you’re uncertain of your demographic designation on file at FSA, you can contact your
local service center to verify your classification on record.
If an update or correction is needed, you may either fill out USDA Form AD-2047 or work with your local
service center to update your record, including race and ethnicity. More information is available in our frequently asked questions. Eligible LoansEligible loans are those:
- Made
directly by FSA, including Farm Storage Facility Loans, Direct Farm
Ownership Loans, Farm Operating Loans, including Microloans and Youth
Loans, Emergency Loans, Conservation Loans, and Soil and Water Loans; and
- Guaranteed
by FSA and made by an approved lender, including Farm Ownership Loans,
Farm Operating Loans, and Conservation Loans.
Both delinquent and current loans are eligible. Debts associated
with these types of loans that have been referred for offset or collection are
also eligible. Certain USDA loans are not eligible, including Marketing
Assistance Loans and Rural Development loans. Also, loans from commercial
lenders such as banks, credit unions or Farm Credit institutions that do not
include a FSA guarantee are not eligible.
For more information, click here.
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