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Title 7, AgricultureRelease 119-110

§2006a Borrower Training

Title 7 › CHAPTER 50 — AGRICULTURAL CREDIT › SUBCHAPTER IV — ADMINISTRATIVE PROVISIONS › § 2006a

Last updated Sep 22, 2026|Official source

Summary

The Secretary must make contracts so every borrower of a farmer program direct loan gets training in farm business and money management for commercial farming. The Secretary can hire state or private groups to give the training (for example, community colleges, extension services, state agriculture departments, or nonprofits) and may talk with a State’s chief executive about who to hire. To get a direct loan, a borrower must receive management help suited to their ability as the county committee decides when checking loan eligibility. If a borrower meets the tests in sections 1922(a)(1)(B) or 1941(a)(1)(B), needing help cannot be used to deny a loan. The Secretary must set the program curriculum and rules. Borrowers must pay for the training and may use money from operating loans under subchapter II. The Secretary can waive the training for someone who shows adequate knowledge, but must use nationwide criteria for such waivers.

Full Legal Text

Title 7, §2006a

Agriculture, Source: USLM XML via OLRC

(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 concepts 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 community college, the extension service of a State, a State department of agriculture, or a nonprofit organization) to carry out this section.
(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 obtain a direct loan under this chapter, a borrower must obtain management assistance under this section, appropriate to the management 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 criteria set out in section 1922(a)(1)(B) or 1941(a)(1)(B) of this title for management assistance 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 establishing guidelines and curriculum for the borrower training program established under this section.
(e)Payment
A borrower shall pay for training received under this section, and may use funds from operating 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 described in this section.
(2)Criteria
The Secretary shall establish criteria providing for the application of paragraph (1) consistently in all counties nationwide.

Legislative History

Notes & Related Subsidiaries

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 Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification 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 “section 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 requirements of this section for an individual borrower on a determination by the county committee that the borrower demonstrates adequate knowledge in areas described 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).

Reference

Citations & Metadata

Citation

7 U.S.C. § 2006a

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110