7 U.S.C. § 2006a — Borrower training

Page 1173 TITLE 7—AGRICULTURE § 2006b § 2006a. Borrower training (a) In general The Secretary shall enter into contracts to provide educational training to all borrowers of farmer program direct loans made under this chapter in financial and farm management con- cepts associated with commercial farming. (b) Contract (1) In general The Secretary may contract with State or private providers of farm management and credit counseling services (including a com- munity college, the extension service of a State, a State department of agriculture, or a nonprofit organization) to carry out this sec- tion. (2) Consultation The Secretary may consult with the chief executive officer of a State concerning the identity of the contracting organization and the process for contracting. (c) Eligibility for loans (1) In general Subject to paragraph (2), to be eligible to ob- tain a direct loan under this chapter, a bor- rower must obtain management assistance under this section, appropriate to the manage- ment ability of the borrower (as determined by the appropriate county committee during the determination of eligibility for the loan). (2) Loan conditions The need of a borrower who satisfies the cri- teria set out in section 1922(a)(1)(B) or 1941(a)(1)(B) of this title for management as- sistance under this section shall not be cause for denial of eligibility of the borrower for a direct loan under this chapter. (d) Guidelines and curriculum The Secretary shall issue regulations estab- lishing guidelines and curriculum for the bor- rower training program established under this section. (e) Payment A borrower shall pay for training received under this section, and may use funds from oper- ating loans made under subchapter II to pay for the training. (f) Waivers (1) In general The Secretary may waive the requirements of this section for an individual borrower if the Secretary determines that the borrower demonstrates adequate knowledge in areas de- scribed in this section. (2) Criteria The Secretary shall establish criteria pro- viding for the application of paragraph (1) con- sistently in all counties nationwide. (Pub. L. 87–128, title III, § 359, as added Pub. L. 101–624, title XVIII, § 1818(a), Nov. 28, 1990, 104 Stat. 3829; amended Pub. L. 105–277, div. A, § 101(a) [title VIII, § 805(3)], Oct. 21, 1998, 112 Stat. 2681, 2681–39; Pub. L. 107–171, title V, §§ 5316, 5501(c), May 13, 2002, 116 Stat. 348, 351; Pub. L. 113–79, title V, § 5306, Feb. 7, 2014, 128 Stat. 840.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (c), was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consoli- dated Farm and Rural Development Act, which is clas- sified principally to this chapter. For complete classi- fication of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. AMENDMENTS 2014—Subsec. (c)(2). Pub. L. 113–79 substituted ‘‘sec- tion 1922(a)(1)(B) or 1941(a)(1)(B)’’ for ‘‘section 1922(a)(2) or 1941(a)(2)’’. 2002—Subsec. (c)(1). Pub. L. 107–171, § 5501(c), struck out ‘‘established pursuant to section 1982 of this title,’’ after ‘‘appropriate county committee’’. Subsec. (f). Pub. L. 107–171, § 5316, added subsec. (f) and struck out heading and text of former subsec. (f). Text read as follows: ‘‘The Secretary may waive the require- ments of this section for an individual borrower on a determination by the county committee that the bor- rower demonstrates adequate knowledge in areas de- scribed in this section.’’ 1998—Subsec. (a). Pub. L. 105–277, § 101(a) [title VIII, § 805(3)(A)], struck out ‘‘and guaranteed’’ after ‘‘direct’’. Subsec. (c). Pub. L. 105–277, § 101(a) [title VIII, § 805(3)(B)], struck out ‘‘or guaranteed’’ after ‘‘direct’’ in pars. (1) and (2). § 2006b. Loan assessments (a) In general The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant. (b) Determinations In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine— (1) the amount that the applicant will need to borrow to carry out the proposed farming plan; (2) the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base; (3) the goals of the proposed farming plan of the applicant; (4) the financial viability of the plan and any changes that are necessary to make the plan viable; and (5) whether assistance is necessary under this chapter and, if so, the amount of the as- sistance. (c) Contract The Secretary may contract with a third party (including those entities eligible to pro- vide borrower training under section 2006a(b) of this title) to conduct loan assessments under this section. (d) Review of loans (1) In general Loan assessments conducted under this sec- tion shall include annual review of direct loans, and periodic review (as determined nec- essary by the Secretary) of guaranteed loans, made under this chapter to assess the progress