USDA will expand the number of eligible lenders from 238 to 747 for the Preferred Lender Program begun in February.  The main feature of the program is a guaranteed 14-day turnaround on applications.

The PLP is designed to allow lenders to make loans to eligible producers without unnecessary and burdensome government regulations.  However, the strict eligiblility requirements made this difficult, says Rep. Charles Stenholm (D-TX) ranking Democrat on the House Agriculture Committee.  “The goal is to streamline thepaperwork requirements for as many producers and lenders as possible, and I am pleased the Farm Service Agency has relaxed the lender requirement.”

Original rules announced Feb. 8 limited participation to lenders processing 30 guaranteed loans over three years.   That meant 238 lenders nationwide were approved.  House Agriculture Committee Chairman Larry Combest (R-TX) urged USDA to change that to 20 loans in five years.

USDA complied, and the action will expand the number of eligible lenders to 747.