American Rescue Plan Debt Payments

The American Rescue Plan Act (ARPA) Section 1005 includes provisions for USDA to pay up to 120% of loan balances, as of January 1, 2021, for Farm Service Agency (FSA) Direct and Guaranteed Farm Loans and Farm Storage Facility Loans (FSFL) to any Socially Disadvantaged producer who has a qualifying loan with FSA. This includes producers who are one or more of the following: Black/African American, American Indian, Alaskan Native, Hispanic/Latino, Asian American, or Pacific Islander.

The 120% payment represents the full cost of the loan to include 100% toward loan balances as of January 1, 2021, and the 20% portion is available for tax liabilities and other fees associated with payment of the debt. Any payments by borrowers made since January 1 will be reimbursed in full.

More information on eligibility and the program timeline are online at: https://www.farmers.gov/americanrescueplan.

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