Guaranteed Farm Loan Programs

Instructions for FSA-2236

GUARANTEED LOAN CLOSING REPORT

Lenders use this form for (1) each loan at the time the guarantee is issued, (2) conversion of an existing guaranteed loan to one with interest assistance, (3) payment of guaranteed loan fees, and (4) consolidation of guaranteed loans. The Guaranteed Loan Closing Report must accompany all guarantee fee payments.

The lender submits this form and applicable fee to the appropriate Farm Service Agency servicing office.

Customers who have established electronic access credentials with USDA may electronically transmit this form to the USDA servicing office, provided that the customer submitting the form is the only person required to sign the transaction.

Features for transmitting the form electronically are available to those customers with access credentials only. If you would like to establish online access credentials with USDA, follow the instructions provided at the USDA eForms web site.

Lenders complete Items 1 through 34. The balance of the form is completed by the Agency.

Items 1 -34

Fld Name / Item No.	Instruction
1 Borrower’s Case Number	Enter Borrower’s Case Number. Show the state and county code and the borrower’s Social Security or Internal Revenue Service Tax Identification Number.
2 Borrower’s Name and Address	Enter Borrower’s Name and Address.
3 Borrower Type Code	Enter applicable Borrower’s Type Code. Example: 1 = Individual 2 = Corporation 3 = Proprietorship 4 = Cooperative 5 = Public Body 6 = Partnership 7 = Other 8 = Indian Tribe 9 = Trust 10 = Limited Partnership 11 = Association of Farmers 12 = Organization of Farm Workers 13 = Joint Operation
4 Lender ID No.	Enter the lender’s Internal Revenue Service Tax Identification Number.
5 Lender’s Status Code	Enter the applicable Lender Status Code. Example: 1 = Reserved 2 = Eligible 3 = Certified 4 = Preferred
6 Lender Type Code	Enter the applicable Lender type Code. Example: 1 = Commercial Bank 2 = Mortgage Loan Co. 3 = Insurance Co. 4 = Production Credit 5 = Federal Land Bank 6 = Credit Union 7 = Savings & Loan 8 = Banks for Coops 9 = Small Business Investment Co. 10 = Broker 11 = Other 12 = Non-Traditional
7 Certification Effective Date	Enter the date the lender’s certification became effective. Completed only if Lender’s Status Code (Item 5) is 3.
8 Certification Expiration Date	Enter the date the lender’s certification expires. Completed only if Item 7 is valued.
9 Lender Name and Address	Enter lender Name and Address. Enter name(s) and address on separate lines. Enter the city, state, and zip code on the same line abbreviating the state to two characters. Do not skip lines.
10 Servicing Office	Enter the applicable Agency Servicing Office. FSA-2235 (Rev. XX-XX-XXXX).
11 Source of Fund	Enter the applicable Source of Funds code. Example: 1 = New Guaranteed Loan (includes all loan types) 2 = Reserved (used for Direct Loan programs) 3 = Reserved 4 = Reserved 5 = Consolidation of Guaranteed Loans Without Interest Assistance 6 = New Guaranteed Farm Loan Program Loan (FLP) with Interest Assistance 7 = FLP Interest Assistance Only
12 Guarantee Fee Purpose Code	Enter the Guarantee Fee Purpose Code. Leave blank if Source of Funds code (Item 11) is input as 7 (FLP Interest Assistance Only). 1 = Substitution 2 = Extension 3 = Initial Closing Fee 4 = Second Half Payment 5 = Consolidation (No Fee on Consolidated Loans) 6 = Reserved 7 = Initial Closing—No Fee NOTE: If consolidating loans (Item 12 equals 5), all loans must be closed. This form will not close and consolidate loans at the same time.
13 Fee Rate	Enter 4.0 if the guarantee fee purpose code equals 6 (Item 12). Otherwise, leave blank. Example: 1 1/12 percent = 0 1 5 0 0.
14 Amount of Guarantee Fee Paid	Enter amount of Guarantee Fee to be Paid with this report. Examples of the computations for each Guaranteed Fee Purpose Code (Item 12) are given below: Item 12 equals 1 (Substitution) Balance Owed on loan (Item 29) 46,928.52 Percent of Guarantee (Item 20) x.90 Total 42,235.67 One Percent x.01 Guarantee Fee 422.36 Item 12 equals 2 (Extension) The guarantee fee should equal 1/2 of 1 percent of the principal balance on the loan if maturity date is 1 year or less. The guarantee fee should equal 1 percent if the maturity date is greater than 1 year with the option that 1/2 of the fee may be paid as of the date of the Extension (Renewal) and second half payable in a single installment within 1 year and 10 days. Loan Maturing In 1 Year Or Less: Balance owed on Loan (Item 29) 46,928.52 1/2 of One Percent x.005 Guarantee Fee 234.64 Loan Maturing In More Than 1 Year: Balance owed on Loan (Item 29) 46.928.52 One Percent x.01 Guarantee Fee 469.29 Item 13 equals 3 (Initial Closing)—The guarantee fee should equal the guarantee rate multiplied by the guaranteed portion of the loan. Example: Amount of Loan (Item 15) 50,000.00 Percent of Guarantee (Item 20) x.90 Total 45,000.00 One Percent x.01 Guarantee Fee 450.00 Item 12 equals 4 (Second Half Payment) The guarantee fee is the second 1/2 of the extension payment. Computations to check this are not necessary. Item 12 equals 5 (Consolidation) There is no fee required. Leave Item 14 blank. Item 12 equals 7 (Initial Closing—No Fee) There is no fee required. Leave Item 14 blank.
15 Amount of Loan-Line of Credit	Enter the amount of loan as follows: (A) Enter the full amount of the loan for new loans or for new loans with buydown or interest assistance. (B) Enter the full amount of an existing line of credit if the interest assistance is established during the period of advances. Otherwise, enter the principal balance. Example: Original Line of Credit Amount $100,000.00 Length of Loan 7 years Period of Advances 3 years Establishing Interest Assistance in Year 1 enter $100,000.00 Establishing Interest Assistance in Year 2 enter $100,000.00 Establishing Interest Assistance in Year 3 enter $100,000.00 Current Principal Balance in Year 4 $76,450.00 Establishing Interest Assistance in Year 4 enter $76,450.00 NOTE: THE AMOUNT ENTERED IN THIS Item MUST MATCH THE AMOUNT OBLIGATED.
16 Advance Amount to Date	Enter cumulative loan advances as of date of loan closing. If the loan is fully advanced, enter amount of loan. If a line of credit, enter current unpaid principal balance. If no advances have been made, enter 0.00.
17 Closing Date	Enter the closing date. The date will be the date of loan for new loans.
18 Maturity Date of Loan	Enter the maturity date of the loan.
19 Term of Buydown/ Interest Assistance Years	For Farm Loan Program loans with Interest Assistance only, enter the term or length of the Interest Assistance Program in years. Must equal 1 - 10. Leave blank for all other loans.
20 Percent of Loan Guaranteed	Enter the percent of loan guarantee as determined by Agency Instructions.
21 Lender’s Note Interest Rate Guaranteed Portion	Enter the lender’ s interest rate on the guaranteed portion of the loan prior to any interest rate reduction due to buydown, interest assistance, or subsidy.
22 Lender’s Note Interest Rate on Nonguaranteed Portion	Enter the rate that will be used to compute the interest charged to the borrower on the non-guaranteed portion of the note prior to any interest rate reduction due to buydown, interest assistance, or subsidy.
23 Buydown Interest Assistance Rate	Enter 4.0.
24 Period of Operating Line of Credit	For Farm Loan Program Operating Lines of Credit only (Type of Guarantee in Item 26 is input as 1), enter the length of the operating line of credit in years. Must equal 1, 2, 3, 4, or 5. Leave blank if Type of Guarantee in Item 26 is input as 2.
25 Reserved	Reserved.
26 Type of Guarantee	Enter the applicable type of guarantee. Line of credit loans are coded 1; all others are 2.
27 Interest Basis	Enter the interest basis. (number of days: 360 or 365).
28 Interest Rate Code	Enter the applicable interest rate code. Multi-rates could involve different interest rates on the guaranteed portion and the non-guaranteed portion of the loan. Example: 1.
29 Balance Owed on Loan	Enter the principal balance owed on loan as of substitution or extension date (Item 12 equals 1 or 2). In all other cases leave this Item blank.
30 Date Guarantee Period Begins	Enter the ending date of the previous guarantee period if Item 12 equals 2 (Extension). In all other cases leave this Item blank.
31 Date Guarantee Period Ends	If Item 12 equals 2, enter the date the guarantee period ends. The guarantee fee period is 1 year for loans repayable in 1 year or less; 3 years for loans for operating purposes repayable in more than 1 year; and 5 years for loans for real estate purposes repayable in more than 1 year. If Item 12 equals 3, 5, 6, or 7, and the guarantee period is shorter than the length of the loan, enter the date the guarantee period ends. In all other cases, this Item is blank.
32 Annual Review Date	Enter the First Annual Review Date on this loan (FLP Loans with Interest Assistance Only) For Annual Payment loans, this should be the First Annual Payment Due Date. For all other loans, this will be the date established by the lender as being the last day of the first period of interest assistance and will be the date in block 23 in the Interest Assistance Agreement, or FSA-2221. This date must be no more than 12 months from the closing date of the note. Once established, all future claims and reviews will be made effective on the anniversary of this date each year.
33 Certified Loan	Check “YES” or “NO” to identify whether this is a Certified Loan.
34A Signature of Authorized Lender	Enter the authorized lender’s signature. THIS FORM WILL BE RETURNED IF IT IS NOT SIGNED.
34B Title	Enter the title of the person authorized to sign this form.
34C Date	Enter the date signed by the lender’s representative.

Items 35 – 37 and Items 39A – 39C will be completed by Agency.

Item 38 will be completed by Finance Office.

Page 7 (proposal 3)