FSA Expands Set-Aside Loan Provision for Customers Impacted by COVID-19

An update yesterday from USDA’s Farm Service Agency (FSA) stated that, “[FSA] will broaden the use of the Disaster Set-Aside (DSA) loan provision, normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. In some cases, FSA may also set aside a second payment for farmers who have already had one payment set aside because of a prior designated disaster.

“‘This immediate change of the Set-Aside provision can provide some welcome financial relief to borrowers during this current crisis,’ said FSA Administrator Richard Fordyce. ‘FSA recognizes that some customers may need this option to improve their cash flow circumstances in response to the COVID-19 outbreak.’

FSA direct loan borrowers will receive a letter with the details of the expanded Disaster Set-Aside authorities, which includes the possible set-aside of annual operating loans, as well as explanations of the additional loan servicing options that are available. To discuss or request a loan payment Set-Aside, borrowers should call or email the farm loan staff at their local FSA county office.”

Yesterday’s update added that, “USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.”

This entry was posted in Agriculture Law. Bookmark the permalink. Both comments and trackbacks are currently closed.