§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 established pursuant to section 1982 ¹ of this title, 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)(2) or 1941(a)(2) 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 of this chapter to pay for the training.

(f) Waivers

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.

(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.)

References in Text

For definition of "this chapter", referred to in subsecs. (a) and (c), see note set out under section 1921 of this title.

Section 1982 of this title, referred to in subsec. (c)(1), was repealed by Pub. L. 103–354, title II, §227(b)(1), Oct. 13, 1994, 108 Stat. 3218 .

Amendments

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).

Section Referred to in Other Sections

This section is referred to in sections 1942, 1949, 1981, 2006b of this title.

¹ See References in Text note below.