In the January 21, 2016, Federal Register, USDA's Farm Service Agency ("FSA") issued a final rule to add Direct Farm Ownership Microloan ("DFOML") to the existing Direct Loan Program. The revisions to the Direct Loan Program regulations consist of application, eligibility, repayment terms, and security requirements to better serve the unique operating needs of small family farm operations. The existing microloans ("MLs") in the Direct Loan Program already include MLs for operating loans. DFOML is expected to make farm ownership loans available and more attractive to small operators through reduced application requirements, more timely application processing, and added flexibility for youth loan borrowers in meeting the farm experience eligibility requirement. The rule was effective January 21, 2016; comments are due April 20, 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
