7 USC 1922 - Persons eligible for real estate loans

U.S Code last checked for updates: Apr 30, 2024

§ 1922.

Persons eligible for real estate loans

(a)

In general

(1)

Eligibility requirements

(2)

Special rules

(A)

Eligibility of certain operating-only entities

(B)

Eligibility of certain embedded entities

(b)

Direct loans

(1)

In general

Subject to paragraph (3), the Secretary may make a direct loan under this subchapter only to a farmer or rancher who has participated in the business operations of a farm or ranch for not less than 3 years or has other acceptable experience for a period of time, as determined by the Secretary, and—

(A)

is a qualified beginning farmer or rancher;

(B)

has not received a previous direct farm ownership loan made under this subchapter; or

(C)

has not received a direct farm ownership loan under this subchapter more than 10 years before the date the new loan would be made.

(2)

Youth loans

(3)

Transition rule

(A)

In general

(B)

Less than 5 years

(C)

5 years or more

(D)

Notice

(4)

Waiver authority

In the case of a qualified beginning farmer or rancher, the Secretary may—

(A)

reduce the 3-year requirement in paragraph (1) to 1 or 2 years, if the farmer or rancher has—

(i)

not less than 16 credit hours of post-secondary education in a field related to agriculture;

(ii)

successfully completed a farm management curriculum offered by a cooperative extension service, a community college, an adult vocational agriculture program, a nonprofit organization, or a land-grant college or university;

(iii)

at least 1 year of experience as hired farm labor with substantial management responsibilities;

(iv)

successfully completed a farm mentorship, apprenticeship, or internship program with an emphasis on management requirements and day-to-day farm management decisions;

(v)

significant business management experience;

(vi)

been honorably discharged from the armed forces of the United States;

(vii)

successfully repaid a youth loan made under section 1941(b) of this title; or

(viii)

an established relationship with an individual who has experience in farming or ranching, or is a retired farmer or rancher, and is participating as a counselor in a Service Corps of Retired Executives program authorized under section 637(b)(1)(B) of title 15, or with a local farm or ranch operator or organization, approved by the Secretary, that is committed to mentoring the farmer or rancher; or

(B)

waive the 3-year requirement in paragraph (1) if the farmer or rancher meets the requirements of clauses (iii) and (viii) of subparagraph (A).

(Pub. L. 87–128, title III, § 302, Aug. 8, 1961, 75 Stat. 307; Pub. L. 91–620, § 2, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 95–334, title I, § 101, Aug. 4, 1978, 92 Stat. 420; Pub. L. 97–98, title XVI, § 1601(a), Dec. 22, 1981, 95 Stat. 1346; Pub. L. 99–198, title XIII, §§ 1301(a), 1302(a), 1303, Dec. 23, 1985, 99 Stat. 1518, 1519; Pub. L. 104–127, title VI, § 601, Apr. 4, 1996, 110 Stat. 1084; Pub. L. 105–277, div. A, § 101(a) [title VIII, §§ 804, 805(1)], Oct. 21, 1998, 112 Stat. 2681, 2681–39; Pub. L. 107–171, title V, §§ 5001, 5302(a), May 13, 2002, 116 Stat. 341, 344; Pub. L. 110–234, title V, § 5001, May 22, 2008, 122 Stat. 1142; Pub. L. 110–246, § 4(a), title V, § 5001, June 18, 2008, 122 Stat. 1664, 1903; Pub. L. 113–79, title V, § 5001(a), (b), Feb. 7, 2014, 128 Stat. 832, 833; Pub. L. 115–334, title V, § 5101, Dec. 20, 2018, 132 Stat. 4668.)

cite as: 7 USC 1922