Justification

OMB Control Number: 0560-0233.

Title of Clearance: Farm Loan Programs; Direct Loan Servicing and Property Management.

Agency Form Number affected by Change Worksheet: FSA 2501-Addendum to the Promissory Note or Assumption Agreement for Set-Aside Programs.

Other Changes:

FSA published the final rule- Enhancing Program Access and Delivery for Farm Loans to adopt Distressed Borrower Set-Aside (DBSA). The original form FSA-2501 only addressed Disaster Set-Aside (DSA) so we needed to revise the form to add DBSA.

The specific changes in the Form-2501 are in the following:

1. In the form title, removed the word “Disaster”.

2. Added a new question 5 to have DBSA or DSA check boxes.

5. Check appropriate box for type of set-aside:

A. For Disaster Set-Aside, any principal amount set aside will continue to accrue interest at the same rate being charged on the non-set-aside portion of the note.

B. For Distressed Borrower Set-Aside, any principal amount set-aside will accrue interest at the rate of 0.125 percent.

3. Revised the paragraph about undersigned borrower and any cosigners:

The undersigned borrower and any cosigners hereby agree to pay the installment being set-aside, plus any accrued interest on the principal amount set-aside, on or before the final due date of the loan, as set forth on the note or assumption agreement being amended.

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 complete the form.