---
kind: "section"
citation: "7 C.F.R. § 762.107"
title: "7"
number: "762.107"
heading: "Micro Lender Program."
url: "https://uscodex.org/cfr/7/762.107"
---

# §762.107. Micro Lender Program.

- (a) **General.** The lenders must submit the following items:
  - (1) To request MLP Status, a lender must submit an application form to any local FSA office.
  - (2) The lender must provide any additional information requested by the Agency to process an MLP request, if the lender continues with the approval process.
  - (3) **MLP lender authorities are limited to originating and servicing EZ Guarantee loans.**
- (b) **MLP criteria.** An MLP lender must satisfy the following requirements to obtain MLP Status:
  - (1) **Have experience in making and servicing business loans.**
  - (2) Have the staff and resources to properly and efficiently discharge its loan making and loan servicing responsibilities that may include use of Agency approved agents.
  - (3) Be subject to oversight as established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).
  - (4) Have a loss rate not in excess of the maximum MLP loss rate established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).
  - (5) Have made the minimum number of loans as established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).
  - (6) Not be debarred or suspended from participation in Government contracts or programs or be delinquent on a Government debt. This includes the lender's officers and agents.
- (c) **Renewal of MLP Status.** MLP Status will expire within a period not to exceed 5 years from the date the lender's agreement is executed, unless a new lender's agreement is executed.
  - (1) **Renewal of MLP Status is not automatic.** A lender must submit a new application for renewal.
  - (2) MLP Status will be renewed if the applicable eligibility criteria under this section are met, and no cause exists for denying renewal under [paragraph (d)(1)](#d-1) of this section.
- (d) **Revocation of MLP Status.** The Agency may revoke the lender's MLP Status at any time during the 5 year term for cause as specified in [paragraph (d)(1)](#d-1) of this section.
  - (1) **Any of the following instances constitutes cause for revoking or not renewing MLP Status—**
    - (i) Violation of the terms of the lender's agreement;
    - (ii) Failure to maintain MLP eligibility criteria;
    - (iii) Knowingly submitting false or misleading information to the Agency;
    - (iv) Deficiencies that indicate an inability to process or service Agency guaranteed farm loan programs loans in accordance with this subpart;
    - (v) Failure to correct cited deficiencies in loan documents upon notification by the Agency;
    - (vi) Failure to submit status reports in a timely manner; or
    - (vii) Failure to comply with the reimbursement requirements of § [762.144(c)(7)](/cfr/7/762.144.md?p=c-7) and [(c)(8)](/cfr/7/762.144.md?p=c-8).
  - (2) A lender that has lost MLP Status may reapply for MLP Status once the problem that caused the MLP Status to be revoked has been resolved.

## Notes

### Amendments

[81 FR 72690, Oct. 21, 2016]

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 64 FR 7378, Feb. 12, 1999, unless otherwise noted.

### Amendments

[81 FR 72690, Oct. 21, 2016]