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FARM LOAN PROGRAMS GUARANTEED WRITEDOWN WORKSHEET
INSTRUCTIONS FOR PREPARATION
Purpose:
Must be used by lenders to document the decision to write down the guaranteed loan(s). 
Handbook Reference:
2-FLP
Number of Copies:
Original and two copies
Signatures Required:
Lender
Distribution of Copies:
Original copy to FSA servicing office.  Copy retained by lender and attach a copy to 
FSA-2254, Guaranteed Loan Report of Loss.
Automation-Related Transactions: N/A

Lenders must complete Items 1 through 23.

Items 1-23 
Fld Name /
Item No.
Instruction
1
Borrower’s
Name
Enter the Borrower’s name as shown on the promissory note.
2
FSA Account
Number
Enter the FSA account number. Enter the state and county code and the borrower’s system generated FSA ID number. 
3
FSA Loan
Number
Enter the Agency assigned loan number. All guaranteed loan numbers begin with 50. The loan number can be obtained from the FSA-2241, Guaranteed Farm Loan Status Report). If a borrower has multiple guaranteed loans, complete this form for each loan being considered for write down.
4A
Principal
Enter the principal balance of the guaranteed loan being considered for write down.
4B
Interest
Enter the amount of unpaid accrued interest on the guaranteed loan being considered for write down.
4C
Total
Enter the result of adding Items 4A and 4B.
5A
Interest Rate for Restructuring
Enter the proposed interest rate for restructuring the loan after write down.
5B
Restructuring Terms
Enter the proposed term for restructuring the loan after write down.
5C
Payment Table Multiplier or Amortization Factor
Enter the payment table multiplier or the amortization factor for the loan. If the Lender does not use published amortization tables, enter result of entering $1.00 into Lender’s loan payment calculator.
5D
Type of Amortization
Check the box that identifies the type of amortization payment schedule shown on the proposed promissory note.  If “Other” is checked, explain.
6
Balance Available
Enter the balance available to pay debt from the plan developed by the Borrower and the Lender.
6A
Less Payments to Other Creditors
Enter the amount to be paid to other creditors. This amount will be taken from the plan developed by the Borrower and the Lender.
6B
Available for Repayment on 
Guaranteed Loan
Enter the result of subtracting Item 6A from Item 6. This is the amount available to pay on the Guaranteed Loan.
7
Present Value
If annual amortization was used enter the result of Item 6B divided by Item 5C.
 
If monthly amortization was used enter the result of Item 6B divided by 12 months divided by Item 5C.

Notes: If the amortization factor is from a table used to amortize a loan of $1,000 the decimal point must be moved 3 spaces to the left.

Item 7 must be equal to or greater than Item 14 in order to obtain debt write down. If Item 7 is less than Item 14, the account should be liquidated.
8A
Market Value of Real Estate Security
Enter the market value of the real estate based on a current appraisal.
8B
Estimated Time For Final Disposition
Enter the estimated liquidation period in months.
9
Expected Income or Value Increase For Real Estate Security
Enter the total income or value increase for the entire holding period. This includes, but not limited to, rent, royalties, projected property appreciation, values gained due to restrictions placed on collateral (such as Conservation Easements, Conservation Reserve Program, etc.)
10A
Market Value of Chattel Security
Enter the market value of the chattel security based on a current appraisal.
10B
Estimated Time
For Final Disposition
Enter the estimated liquidation period in months.
11
Total Value of Security
Enter the result of adding Items 8A, 9, and 10A.
12A
Prior Liens
Enter the dollar amount of the prior liens including unpaid taxes. Use actual amounts based on statements or invoices.
12B(1)
Real Estate Depreciation
Enter the dollar amount of depreciation anticipated during the holding period.
12B(2)
Chattel Depreciation
Enter the dollar amount of depreciation anticipated during the holding period.
12C
Repairs
Enter the estimated dollar amount of essential repairs needed during the holding period. Attach an itemized estimate.
12D(1)
Closing Costs
Enter the estimated dollar amount of closing costs.
12D(2)
Surveys
Enter the dollar amount of the cost to be incurred for a real estate survey.
12D(3)
Freight
Enter the estimated dollar amount of freight expenses. (Example: hauling equipment or livestock to an auction)
12D(4)
Outside Environmental or Technical Assessments
Enter the dollar amount of estimated costs if outside assistance is needed for environmental and technical assessments on the property.
12E
Advertising
Enter the estimated dollar amount of advertising costs.
12F(1)
Real Estate Commission
Enter the estimated dollar amount of commission to be paid if the property is to be listed with a broker.
12F(2)
Equipment Commission
Enter the estimated dollar amount of commission to be paid if the equipment is to be sold at auction.
12F(3)
Livestock
Commission
Enter the estimated dollar amount of commission to be paid if the livestock are to be sold at auction.
12G
Interest Cost
Enter the dollar amount of interest accrual for additional 210 days from the payment due date. Attach a ledger.
12H
Other Expenses
Enter the dollar amount of other estimated expenses. Itemize the expenses.
12I
Hazardous Waste Removal
Enter the dollar amount of anticipated costs for removal of hazardous waste from the property.
13
Total Costs
Enter the results of adding Items 12A through 12I.
14
Net Recovery Value
Enter the result of subtracting Item 13 from Item 11.
15
Total Loan Balance
Enter the dollar amount from Item 4C.
16 
Present Value
Enter the dollar amount from Item 7.
17
Difference
Enter the result of subtracting Item 16 from Item 15.
18 
Remaining Loan Balance
Enter the result of subtracting Item 17 from Item 15.
19
Write Down Loss Claim
Enter the result of multiplying the percentage of the guarantee by Item 17. (Example: 90% X $1,000)
20
Remarks or Attachments
Enter any remarks that may further explain any of the above information.
21A
Authorized Lender’s Signature
Enter authorized Lender’s signature.
21B
Title
Enter the title of the representative signing the document.
22
Date
Enter the date the form was prepared.
23
Office Location
Enter the office location.