---
kind: "section"
citation: "7 U.S.C. § 1949"
title: "7"
title_heading: "Agriculture"
number: "1949"
heading: "Graduation of borrowers with operating loans or guarantees to private commercial credit"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/1949"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter II — Operating Loans"
---

# §1949. Graduation of borrowers with operating loans or guarantees to private commercial credit


The [Secretary](/usc/7/499a.md?p=b-2) shall establish a plan, in coordination with activities under sections [2006a](/usc/7/2006a.md), [2006b](/usc/7/2006b.md), [2006c](/usc/7/2006c.md), and [2006d](/usc/7/2006d.md) of this title, to encourage each [borrower](/usc/7/1991.md?p=b-1) with an outstanding loan under this subchapter or with respect to whom there is an outstanding guarantee under this subchapter to graduate to private commercial or other sources of credit.


## Source credit

(Pub. L. 87–128, title III, § 319, as added Pub. L. 102–554, § 9, Oct. 28, 1992, 106 Stat. 4150; amended Pub. L. 104–127, title VI, § 617, Apr. 4, 1996, 110 Stat. 1090; Pub. L. 113–79, title V, § 5107, Feb. 7, 2014, 128 Stat. 838.)

## Notes

### Editorial Notes

### Amendments

2014—Pub. L. 113–79 struck out subsec. (a) designation and heading before “The Secretary” and struck out subsec. (b) which related to limitation on period borrowers were eligible for guaranteed assistance under this subchapter and contained transition rule.

1996—Subsec. (b). Pub. L. 104–127 added subsec. (b) and struck out former subsec. (b) which provided for limitation on period for which borrowers were eligible for assistance under this subchapter and contained transition rule.

### Statutory Notes and Related Subsidiaries

### Suspension of Limitation on Period for Which Borrowers Are Eligible for Guaranteed Assistance

Pub. L. 107–171, title V, § 5102, May 13, 2002, 116 Stat. 343, as amended by Pub. L. 109–467, § 1, Dec. 22, 2006, 120 Stat. 3485; Pub. L. 110–234, title V, § 5103, May 22, 2008, 122 Stat. 1146; Pub. L. 110–246, § 4(a), title V, § 5103, June 18, 2008, 122 Stat. 1664, 1908, provided for the suspension of former 7 U.S.C. 1949(b) limitation on period borrowers were eligible for guaranteed assistance, beginning Jan. 1, 2002, and ending Dec. 31, 2010.