---
kind: "section"
citation: "7 U.S.C. § 2006b"
title: "7"
title_heading: "Agriculture"
number: "2006b"
heading: "Loan assessments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2006b"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter IV — Administrative Provisions"
---

# §2006b. Loan assessments

- (a) **In general—** The [Secretary](/usc/7/499a.md?p=b-2) shall evaluate, in accordance with regulations issued by the [Secretary](/usc/7/499a.md?p=b-2), the [farming](/usc/7/1991.md?p=a-2) plan and financial situation of each qualified [farmer](/usc/7/1991.md?p=a-1) or rancher applicant.
- (b) **Determinations—** In evaluating the [farming](/usc/7/1991.md?p=a-2) plan and financial situation of an applicant under this section, the [Secretary](/usc/7/499a.md?p=b-2) shall determine—
  - (1) the amount that the applicant will need to borrow to carry out the proposed [farming](/usc/7/1991.md?p=a-2) plan;
  - (2) the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;
  - (3) the goals of the proposed [farming](/usc/7/1991.md?p=a-2) plan of the applicant;
  - (4) the financial viability of the plan and any changes that are necessary to make the plan viable; and
  - (5) whether assistance is necessary under this chapter and, if so, the amount of the assistance.
- (c) **Contract—** The [Secretary](/usc/7/499a.md?p=b-2) may contract with a third party (including those entities eligible to provide [borrower](/usc/7/1991.md?p=b-1) training under [section 2006a(b) of this title](/usc/7/2006a.md?p=b)) to conduct loan assessments under this section.
- (d) **Review of loans—**
  - (1) **In general—** Loan assessments conducted under this section shall include annual review of [direct loans](/usc/7/1991.md?p=a-9), and periodic review (as determined necessary by the [Secretary](/usc/7/499a.md?p=b-2)) of guaranteed loans, made under this chapter to assess the progress of a [borrower](/usc/7/1991.md?p=b-1) in meeting the goals for the farm or ranch operation.
  - (2) **Contracts—** The [Secretary](/usc/7/499a.md?p=b-2) may contract with an entity that is eligible to provide [borrower](/usc/7/1991.md?p=b-1) training under [section 2006a(b) of this title](/usc/7/2006a.md?p=b) to conduct loan reviews under [paragraph (1)](#d-1).
  - (3) **Problem assessments—** If a [borrower](/usc/7/1991.md?p=b-1) is delinquent in payments on a direct or guaranteed loan made under this chapter, the [Secretary](/usc/7/499a.md?p=b-2) or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.
- (e) **Guidelines—** The [Secretary](/usc/7/499a.md?p=b-2) shall issue regulations providing guidelines for loan assessments conducted under this section.

## Source credit

(Pub. L. 87–128, title III, § 360, as added Pub. L. 101–624, title XVIII, § 1819, Nov. 28, 1990, 104 Stat. 3830; amended Pub. L. 107–171, title V, §§ 5317, 5318, May 13, 2002, 116 Stat. 348.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a), (b)(5), and (d)(1), (3), was in the original “this title”, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, 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 section 1921 of this title and Tables.

### Amendments

2002—Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”.

Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.