1、CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i COVID-19 and USDA Farm Loan Flexibilities June 3, 2020 On May 21, 2020, the U.S. Department of Agriculture (USDA) temporarily expanded the Disaster Set-Aside (DSA) provision to allow flexibility for farm loan repayment due
2、 to the economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic. The set-aside provision allows a borrower to move a loan payment owed to USDAs Farm Service Agency (FSA) to the end of the loan or, in the case of an annual operating loan, to extend the payment by a year. Interest continu
3、es to accrue on the deferred principal; neither the interest nor the principal is forgiven. The set-aside (deferment) is meant to provide financial relief and cash flow flexibility during a crisis. Earlier during the pandemic, on March 26, 2020, USDA announced certain flexibilities in its loan-makin
4、g and servicing procedures. These included relaxing deadlines, accommodating social distancing, and temporarily suspending loan accelerations and new foreclosures. Disaster Set-Aside Provision Disaster set-aside has been available to FSA farm loan borrowers since 1994 (7 C.F.R. 766.51-61). The under
