Source:  USDA, 9/29/10

The 15 year Guaranteed operating loan (OL) term limit is suspended until December 31, 2010.  Legislation (S. 3221) has been introduced in Congress to continue the term limit suspension. However, no action has been taken to date and Congress is now adjourned until mid-November.

If the suspension is allowed to expire, several thousand guaranteed borrowers will no longer be eligible for a guaranteed OL.  In anticipation of this, the National Office is developing a notice to address the issue and compiling a list of borrowers who may be affected.

In the meantime, if you have any customers in need of additional credit that you believe will be affected by the term limits, please work with them now to submit a guarantee request in order to complete the process and close the guaranteed loan prior to December 31, 2010.