The USDA announced the initial phase of plans to pay off USDA direct loans to socially disadvantaged (SDA) farmers and ranchers. It will subsequently announce its process for paying off guaranteed loans.
Background: Section 1005 of the recently passed American Rescue Plan Act relief legislation requires USDA to pay off 120 percent of all direct and guaranteed loans existing as of Jan. 1, 2021.
ICBA Position: ICBA has urged the USDA to implement the required payoff of guaranteed loans in a manner that is least disruptive to the banking sector and secondary market purchasers.