Justification

OMB Control Number: 0560-0237.

Title of Clearance: Farm Loan Programs; Direct Loan Making.

Agency Form Number affected by Change Worksheet: FSA-2313-Notification of Loan Approval and Borrower Responsibilities; FSA-2730-Request for Waiver of Borrower Training Requirements/Borrower Training Assessment; FSA-2371-Agreement to Complete Training; FSA-2026-Promissory Note.

Other Changes:

Form FSA-2313: The FSA-2313 is used to summarize the terms, conditions, and borrower responsibilities. Technical corrections and minor clarifications were made as necessary to coincide with the Enhancing FLP Rule.

The specific changes are the following:

Part B, Item 3 is revised to remove the selective options for the Microloan interest rate.

Part B, Item 5 is revised to clarify repayment plan installments.

Part C, Item 1 is revised to remove Production Management as a selective option.

Form FSA-2730: The FSA-2730 is used by borrowers to request a waiver for borrower training. Technical corrections and minor clarifications were made as necessary to coincide with the Enhancing FLP Rule.

The specific change is in the following:

Part A, Item 1 and Item 2 are removed. Guidelines are consolidated into one paragraph to address the requirements that must be documented for a waiver.

Form FSA-2371: The FSA-2371 is used to certify that the borrower agrees to complete financial training. Technical corrections and minor clarifications were made as necessary to coincide with the Enhancing FLP Rule.

The specific change is in the following:

Part A, Item 1 is revised to remove reference to production training.

Form FSA-2026: The FSA Form FSA-2026 is used when making initial and subsequent direct loans and for reamortizing, consolidating and rescheduling such loans. The purpose of the form is to document and provide evidence of debt and to establish a repayment schedule. This is a legal instrument evidencing debt.

No changes are being made to the specific fields on the FSA-2026 or to the existing instructions for completing the FSA-2026. The USDA service center collects the information from internal systems that contain the applicable information to complete the form. The applicant or borrower executes the form at closing.

The revisions to FSA-2026 are regulatory language changes to coincide with the publication of the Enhancing Program Access and Delivery for Farm Loans final rule, notifying applicants and borrowers of new loan covenants for graduation non-compliance.

______________________________

There are no changes to the burden hours for the form because the revisions are minimal and do not impact the time to review and/or complete the form.