Difficulties in Coordinating Farm Assistance Programs Operated by Farmers Home Administration and Small Business Administration
CED-78-118
Published: May 25, 1978. Publicly Released: Oct 27, 1983.
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Highlights
The Farmers Home Administration (FmHA) has traditionally been the primary federal agency making disaster and nondisaster loans to farmers. Public Law 94-305 amended the Small Business Act to include farmers in the definition of a small business concern, allowing the Small Business Administration (SBA) to provide disaster and nondisaster loans to farmers.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should decide whether or not it should be government policy to make disaster assistance loans to farmers who are able to obtain credit elsewhere. Once this decision is made, the Small Business Act should be amended so that SBA is no longer authorized to make disaster loans to farmers. Congress should also enact legislation to liberalize the eligibility requirements and increase the loan limits of FmHA regular farm loan programs. The Administrator, FmHA, should propose legislation to Congress to revise the agency's minimum loss eligibility criteria to make it more equitable. The Administrator, SBA, should request joint-payee checks for amounts of any disaster payments so that the payments may be applied against borrowers' loans. | SBA no longer provides disaster assistance loans. |
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Topics
Agricultural programsDisaster relief aidEligibility criteriaInteragency relationsLoansFarmingSmall businessDisaster reliefDisastersLegislation