Inflation Reduction Act Section 22006 Assistance for Distressed Borrowers Stakeholder and Discrimination Financial Assistance Program
Posted On December 13, 2023 in News
The Inflation Reduction Act provided $3.1 billion for USDA to provide relief for distressed borrowers with certain Farm Service Agency (FSA) direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk.
Since October 2022, USDA has provided approximately $1.5 billion in immediate assistance to more than 25,000 financially distressed direct and guaranteed FSA loan borrowers.
FSA is currently accepting and reviewing individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans and those who missed a recent installment or who are unable to make their next scheduled installment.
FSA direct loan borrowers with qualifying farm loans who are unable to pay their upcoming installments or have already missed a recent installment payment can request a cash flow analysis from FSA using a recent balance sheet and operating plan to determine their eligibility. This assistance is currently limited to installments due Aug. 1, 2022, through Jan. 15, 2024.
Assistance is also available for borrowers who took certain extraordinary measures between Feb. 28, 2020, through Oct. 18, 2022, to avoid delinquency on their loans, such as monetizing long-term or essential assets, incurring additional non-FSA debt, or deferring other essential payments, resulting in reduced farm and household viability.
All requests for assistance must be received by Dec. 31, 2023. For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmer.gov/inflation-reduction-investments/assistance.
Cash Flow-Based Assistance
www.farmers.gov/sites/default/files/2023-08/fsa-ira-cash-flow-based-assistance-factsheet-2023.pdf
Extraordinary Measures Assistance
Discrimination Financial Assistance Program
Program Overview
To implement Section 22007 of the Inflation Reduction Act (IRA), the United States Department of Agriculture (USDA) Discrimination Financial Assistance Program (DFAP or “the Program”) will provide financial assistance to farmers, ranchers, and forest landowners who experienced discrimination in USDA’s farm lending prior to January 1, 2021.
USDA extended the deadline for the Discrimination Financial Assistance Program, Section 22007, to January 13, 2024. The original deadline was October 31, 2023. Applicants can visit 2207apply.gov or call the free call center at 1-800-721-0970. There is also a new office for assistance located in Columbia, South Carolina at 140 Stoneridge Drive, Suite 430, Columbia, SC 29210.