Title 7

SECTION 762.107

762.107 Micro Lender Program.

§ 762.107 Micro Lender Program.

(a) General. The lenders must submit the following items:

(1) To request MLP Status, a lender must submit an application form to any local FSA office.

(2) The lender must provide any additional information requested by the Agency to process an MLP request, if the lender continues with the approval process.

(3) MLP lender authorities are limited to originating and servicing EZ Guarantee loans.

(b) MLP criteria. An MLP lender must satisfy the following requirements to obtain MLP Status:

(1) Have experience in making and servicing business loans.

(2) Have the staff and resources to properly and efficiently discharge its loan making and loan servicing responsibilities that may include use of Agency approved agents.

(3) Be subject to oversight as established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).

(4) Have a loss rate not in excess of the maximum MLP loss rate established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).

(5) Have made the minimum number of loans as established and announced by the Agency on the FSA Web site (www.fsa.usda.gov).

(6) Not be debarred or suspended from participation in Government contracts or programs or be delinquent on a Government debt. This includes the lender's officers and agents.

(c) Renewal of MLP Status. MLP Status will expire within a period not to exceed 5 years from the date the lender's agreement is executed, unless a new lender's agreement is executed.

(1) Renewal of MLP Status is not automatic. A lender must submit a new application for renewal.

(2) MLP Status will be renewed if the applicable eligibility criteria under this section are met, and no cause exists for denying renewal under paragraph (d)(1) of this section.

(d) Revocation of MLP Status. The Agency may revoke the lender's MLP Status at any time during the 5 year term for cause as specified in paragraph (d)(1) of this section.

(1) Any of the following instances constitutes cause for revoking or not renewing MLP Status:

(i) Violation of the terms of the lender's agreement;

(ii) Failure to maintain MLP eligibility criteria;

(iii) Knowingly submitting false or misleading information to the Agency;

(iv) Deficiencies that indicate an inability to process or service Agency guaranteed farm loan programs loans in accordance with this subpart;

(v) Failure to correct cited deficiencies in loan documents upon notification by the Agency;

(vi) Failure to submit status reports in a timely manner; or

(vii) Failure to comply with the reimbursement requirements of § 762.144(c)(7) and (c)(8).

(2) A lender that has lost MLP Status may reapply for MLP Status once the problem that caused the MLP Status to be revoked has been resolved.

[81 FR 72690, Oct. 21, 2016]

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