ABSTRACT

COVID-19 and USDA Farm Loan Flexibilities [June 3, 2020]   [open pdf - 719KB]

From the Document: "On May 21, 2020, the U.S. Department of Agriculture (USDA) temporarily expanded the Disaster Set-Aside (DSA) provision to allow flexibility for farm loan repayment due to the economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic. The set-aside provision allows a borrower to move a loan payment owed to USDA's Farm Service Agency (FSA) to the end of the loan or, in the case of an annual operating loan, to extend the payment by a year. Interest continues to accrue on the deferred principal; neither the interest nor the principal is forgiven. The set-aside (deferment) is meant to provide financial relief and cash flow flexibility during a crisis. Earlier during the pandemic, on March 26, 2020, USDA announced certain flexibilities in its loan-making and servicing procedures. These included relaxing deadlines, accommodating social distancing, and temporarily suspending loan accelerations and new foreclosures."

Report Number:
CRS Insight, IN11415
Author:
Publisher:
Date:
2020-06-03
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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