§2006a. Borrower training

(a) In general

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) Contract

(1) In general

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) Consultation

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) Eligibility for loans

(1) In general

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) Loan conditions

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) Guidelines and curriculum

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

(e) Payment

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) Waivers

(1) In general

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) Criteria

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

(Pub. L. 87–128, title III, §359, as added Pub. L. 101–624, title XVIII, §1818(a), Nov. 28, 1990, 104 Stat. 3829 ; amended Pub. L. 105–277, div. A, §101(a) [title VIII, §805(3)], Oct. 21, 1998, 112 Stat. 2681 , 2681-39; Pub. L. 107–171, title V, §§5316, 5501(c), May 13, 2002, 116 Stat. 348 , 351; Pub. L. 113–79, title V, §5306, Feb. 7, 2014, 128 Stat. 840 .)

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).