The Agricultural Credit Administration encourages the institutions of the agricultural credit system (system) to work with borrowers in the system whose operations have been affected by COVID-19 and measures taken to prevent its spread.
The coronavirus is creating significant disruption to the American economy and life, and governments, businesses and the public are taking action to minimize and mitigate the risks. We recognize that the pandemic can also create significant stress for system borrowers due to disruption to employees, markets, transportation, and other factors important to their operations.
“FCA regulations and the strong financial position of the institutions in the system give institutions considerable flexibility to provide relief to borrowers affected by COVID-19,” said Glen R. Smith, Chairman of the Board and CEO of FCA . “We encourage institutions to use this flexibility to work with borrowers to reduce the stress and financial burden associated with illness and efforts to contain it.”
Institutions in the system can help alleviate stress for borrowers affected by COVID-19 in several ways:
Extend loan repayment terms
Restructuring of borrowers’ debts
Relaxation of certain loan documents or credit extension conditions for new loans to certain borrowers
Besides affecting the borrowers of the system, the virus can also create challenges for the employees and institutions of the system. These challenges can affect the ability of institutions to comply with regulatory or reporting requirements in a timely manner. The FCA may be able to provide temporary relief in certain circumstances that would alleviate these challenges without weakening security and soundness.
The FCA encourages any institution in the system that needs a temporary waiver of these requirements to contact David Grahn, director of the agency’s Office of Regulatory Policy, at 703-883-4145.
The policy statement of the board of directors of the FCA PS-71, Disaster relief efforts by agricultural credit system institutions, provides additional information that can help system institutions respond to the impacts of the virus on their operations.
To learn more about COVID-19, please see the Centers for Disease Control and Prevention website.
In these difficult times, we wish the system staff and borrowers the best.