US Code

Public Law 119-73 (01/23/2026)

7 U.S.C. § 2008h

Loan and loan servicing limitations

(a)

Delinquent borrowers prohibited from obtaining direct operating loans

The Secretary may not make a direct operating loan under subchapter II to a borrower who is delinquent on any loan made or guaranteed under this chapter.

(b)

Prohibition of loans for borrowers that have received debt forgiveness

(1)

Prohibitions

Except as provided in paragraph (2)—
(A)
the Secretary may not make a loan under this chapter to a borrower that has received debt forgiveness on a loan made or guaranteed under this chapter; and
(B)
the Secretary may not guarantee a loan under this chapter to a borrower that has received—
(i)
debt forgiveness after , on a loan made or guaranteed under this chapter; or
(ii)
received debt forgiveness on more than 3 occasions on or before .
(2)

Exceptions

(A)

In general

The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who—
(i)
section 2001 of this title was restructured with a write-down under ;
(ii)
1
1 So in original. Probably should be “chapter”.
is current on payments under a confirmed reorganization plan under chapters  11, 12, or 13 of title 11; or
(iii)
42 U.S.C. 5121 received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after , under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( et seq.).
(B)

Emergency loans

(i)

In general

section 1961 of this titleThe Secretary may make an emergency loan under to a borrower that—
(I)
on or before , received not more than 1 debt forgiveness on a loan made or guaranteed under this chapter; and
(II)
after , has not received debt forgiveness on a loan made or guaranteed under this chapter.
(ii)

Restructured loans

section 2001 of this titleFor purposes of clause (i), a borrower who was restructured with a write-down or restructuring under shall not be considered to have received debt forgiveness on a loan made or guaranteed under this chapter.

(c)

No more than 1 debt forgiveness for borrower on direct loan

The Secretary may not provide to a borrower debt forgiveness on a direct loan made under this chapter if the borrower has received debt forgiveness on another direct loan made under this chapter.

Pub. L. 87–128, title III, § 373Pub. L. 104–127, title VI, § 648(b)110 Stat. 1104Pub. L. 105–277, div. A, § 101(a) [title VIII, § 801]112 Stat. 2681Pub. L. 107–171, title V, § 5319116 Stat. 348Pub. L. 115–334, title V, § 5307132 Stat. 4673(, as added , , ; amended , , , 2681–37; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 87–12875 Stat. 307section 1921 of this titleThis chapter, referred to in text, was in the original “this title”, meaning title III of , , , known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under and Tables.

Pub. L. 93–28888 Stat. 143section 5121 of Title 42The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (b)(2)(A)(iii), is , , , which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 115–3342018—Subsec. (b)(2)(B). designated existing provisions as cl. (i) and inserted heading, redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i), and added cl. (ii).

Pub. L. 107–1712002—Subsec. (b)(2)(A)(iii). added cl. (iii).

Pub. L. 105–2771998—Subsec. (b). added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows:

In general“(1) .—Except as provided in paragraph (2), the Secretary may not make or guarantee a loan under this chapter to a borrower who received debt forgiveness on a loan made or guaranteed under this chapter.

Exceptionsection 2001 of this title“(2) .—The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who was restructured with a write-down under .”