USDA Suspends Debt Collections and Foreclosures for Distressed Borrowers
USDA announced that it will temporarily suspend past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by the Farm Service Agency (FSA). Additionally, USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers. According to USDA data, more than 12,000 borrowers—approximately 10% of all borrowers—are eligible for this relief. The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place.