Interest assistance program.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) A feasible plan cannot be achieved without interest assistance, but can be achieved with interest assistance. (2) If significant changes in the borrower's cash flow budget are anticipated after the initial 12 months, then the typical cash flow budget must demonstrate that the borrower will still have a feasible plan following the anticipated changes, with or without interest assistance. (3) The typical cash flow budget must demonstrate that the borrower will have a feasible plan throughout the term of the loan. (4) The borrower, including members of an entity borrower, does not own any significant assets that do not contribute directly to essential family living or farm operations. The lender must determine the market value of any such non-essential assets and prepare a cash flow budget and interest assistance calculations based on the assumption that these assets will be sold and the market value proceeds used for debt reduction. If a feasible plan can (5) A borrower may only receive interest assistance if their total debts (including personal debts) prior to the new loan exceed 50 percent of their total assets (including personal assets). An entity's debt to asset ratio will be based upon a financial statement that consolidates business and personal debts and assets of the entity and its members. Beginning farmers § 761.2(b) of this chapter, as defined in § 762.102, are excluded from this requirement. (c) (d) (2) Beginning farmers § 761.2(b) of this chapter, as

official document · source cfr-2024 · id 7:§ 762.150