§2006a — Title 7 Agriculture | U.S. Code

Summary

The Secretary must hire organizations to give training to every borrower who gets a farmer program direct loan. The training will teach financial and farm management skills for commercial farming. The Secretary can hire state or private groups (for example, community colleges, extension services, state agriculture departments, or nonprofits) and may consult the State’s chief executive about who to hire. The Secretary must also create the program rules and curriculum. Borrowers must get management help that fits their skills as the county committee decides to be eligible for a loan. But if a borrower meets the criteria in sections 1922(a)(1)(B) or 1941(a)(1)(B), needing help cannot be used to deny the loan. Borrowers must pay for the training and may use operating loan funds under subchapter II to pay. The Secretary can waive training for someone who shows enough knowledge and must set uniform waiver rules for all counties.

Title 7, §2006a

Agriculture — Source: USLM XML via OLRC

(a)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)(1)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)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)(1)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)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)The Secretary shall issue regulations establishing guidelines and curriculum for the borrower training program established under this section.

(e)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)(1)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)The Secretary shall establish criteria providing for the application of paragraph (1) consistently in all counties nationwide.

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).

§2006a Borrower Training