Transcript General Presentation on Borrower Training

BORROWER
TRAINING
UNLOCKING THE MYSTERY
BORROWER TRAINING-PRE
 Training
requirements can
be thought of in 2
different stages.
BORROWER TRAINING-PRE
 Pre-loan
to qualify
for farm and
managerial
experience
 Training required as
a condition of
receiving a loan
BORROWER TRAINING-PRE



To meet the managerial
requirement through
education alone, the
applicant has completed
or
is completing an
educational program in
agriculture. Acceptable
educational programs
include any of the
following:
BORROWER TRAINING-PRE
 successful
completion
of farm management
curriculum offered by
the Cooperative
Extension Service, a
community college,
adult vocational
agriculture program, or
land grant university
BORROWER TRAINING-PRE
 In
addition, for a
farm ownership
loan the applicant
must participate in
the management
of a farm in 3 of the
last 10 years. 1
year can be
substituted.
BORROWER TRAINING-PRE
 Leadership
experience in the
military
 Post secondary
education (at least
16 semester hours)
 Significant business
experience
BORROWER TRAINING
 The
purpose of
production and
financial
management
training is to help
an applicant
develop and
improve skills
necessary to:
BORROWER TRAINING



(a) Successfully
operate a farm;
(b) Build equity in the
operation; and
(c) Become financially
successful and
prepared to graduate
from Agency financing
to commercial sources
of credit.
BORROWER TRAINING

The applicant must
agree to complete
production and
financial management
training, unless the
Agency provides a
waiver or the applicant
has previously satisfied
the training
requirements.
BORROWER TRANING
 The
Agency will
grant a waiver for
training in
production,
financial
management, or
both, under the
following
conditions:
BORROWER TRAINING

The applicant
submits evidence of
successful
completion of a
course similar to an
approved borrower
training course and
the Agency
determines that
additional training is
not needed; or
BORROWER TRAINING

The applicant
submits evidence,
which demonstrates
to the Agency’s
satisfaction the
applicant’s
experience and
training necessary
for a successful and
efficient operation.
BORROWER TRAINING
 If
the Agency
requires an
applicant to
complete training,
at loan closing the
applicant must
agree in writing to
complete all
required training
within two years.
BORROWER TRAINING

The Agency will
grant a one-year
extension to
complete training if
the applicant is
unable to complete
training within the 2year period due to
circumstances
beyond the
applicant’s control.
BORROWER TRAINING
 The
borrower must
select and contact
an Agency
approved vendor
and make all
arrangements to
begin training.
 The applicant is
responsible for the
cost of training
BORROWER TRAINING
 Once
required, no
other loans are
authorized unless
training is
completed by end
of required time (2
years, 1 yr ext. for
reasons beyond
their control)
BORROWER TRAINING

An applicant who
does not complete
the required training
within the specified
time-period will be
ineligible for
additional direct FLP
loans until the
training is
completed.
BORROWER TRAINING
 The
Agency will
contract for
training services
with State or
private providers of
production and
financial
management
training services.
BORROWER TRAINING
A
vendor for
borrower training
services must
apply to the
Agency for
approval and can
list additional
states.
BORROWER TRAINING
 The
vendor must
demonstrate a
minimum of 3 years
of experience in
conducting training
courses or
teaching the
subject matter.
BORROWER TRAINING
 State
Directors can
approve
applications from
vendors that are
accredited 2 and 4
year colleges.
BORROWER TRAINING
 National
Office
concurrence is
required when a
vendor is not an
accredited college
or university. (State
program or
community based
organization)