§1983a Prompt Approval of Loans and Loan Guarantees

Summary

The Secretary of Agriculture must decide on a loan or loan guarantee application and tell the applicant no later than 60 days after getting a complete application. If the application (except some operating loans) is incomplete, the Secretary must say why within 20 days. For operating loans under subchapter II, the Secretary must tell the applicant within 10 days what extra information is needed. Department agencies must give requested information within 15 days. If information is still missing 20 days after the request, the Secretary must inform the applicant and the Farmers Home Administration district office in writing. County offices must tell the district office about any subchapter II application pending more than 45 days and why. The district office must then make sure a final decision is made within 15 days of getting that notice. Each month the Secretary must report to the House and Senate Agriculture Committees any subchapter II applications that have not been decided within 60 days and explain why. If an application is denied, the Secretary must give the reasons. If an application under section 1932(a) or a loan under section 1926(a) is denied only because there are not enough funds, it must be put in pending status and kept until funds are available, and the applicant must be told whether the loan is approved or denied within 60 days after funds become available. If a loan is approved, the Secretary must give the loan money to the borrower within 15 days after approval unless the borrower agrees to a longer wait. If the Secretary lacks funds, the money must be provided as soon as possible and not later than 15 days after funds are available unless the borrower agrees to wait longer. If an application is sent back to the Secretary after an appeal, the Secretary must act and tell the applicant within 15 days. Requests to be designated as an approved lender must be decided within 15 days of a complete application. The Secretary must make staff and other resources available (including paying overtime) to the Farmers Home Administration as soon as practicable after December 23, 1985, and may use authorities such as the Agricultural Credit Insurance Fund and emergency loan hiring procedures. The Secretary must also help move seasoned direct loan borrowers toward commercial guaranteed loans. Loans are reviewed each year and, when possible, the Secretary will prepare a prospectus and help the borrower get a guaranteed loan from approved lenders. If a lender offers credit under the prospectus, the borrower generally cannot get a new insured loan instead. If guarantees or interest help are not available, the Secretary must make an insured loan. The Secretary must provide short, simple application forms for farmer loans of $125,000 or less and for business and industry guarantees up to $400,000 (for fiscal years 2002–2003) and generally up to $400,000 or up to $600,000 if no greater risk in later years. The Secretary must speed up applications for water and waste grants or loans of $300,000 or less. In making forms, the Secretary must consult lenders and keep the forms quick, low-cost, minimal in paperwork, and usable by paper or electronically. To the maximum extent possible, the Secretary must also make single-page or otherwise simplified applications for several other loan and grant programs.