{"data":{"id":"us/7-cfr-766.104","jurisdiction":"us","citation":"7 CFR 766.104","heading":"Borrower eligibility requirements.","body":"(a) A borrower must meet the following eligibility requirements to be considered for primary loan servicing:\n(1) The delinquency or financial distress is the result of reduced repayment ability due to one of the following circumstances beyond the borrower's control:\n(i) Illness, injury, or death of a borrower or other individual who operates the farm;\n(ii) Natural disaster, adverse weather, disease, or insect damage which caused severe loss of agricultural production;\n(iii) Widespread economic conditions such as low commodity prices;\n(iv) Damage or destruction of property essential to the farming operation;\n(v) Loss of, or reduction in, the borrower or spouse's essential non-farm income; or\n(vi) Catastrophic medical expenses for the care of a family member of the borrower or entity member, in the case of an entity borrower.\n(2) The borrower does not have non-essential assets for which the net recovery value is sufficient to resolve the financial distress or pay the delinquent portion of the loan.\n(3) If the borrower is in non-monetary default, the borrower will resolve the non-monetary default prior to closing the servicing action.\n(4) The borrower has acted in good faith.\n(5) Financially distressed or current borrowers requesting servicing must pay a portion of the interest due on the loans.\n(6) The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718.\n(b) Debtors with SA only must:\n(1) Be delinquent due to circumstances beyond their control;\n(2) Have acted in good faith.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE","SUBCHAPTER D—SPECIAL PROGRAMS","PART 766—DIRECT LOAN SERVICING—SPECIAL","Subpart C—Loan Servicing Programs"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"fd2fbdff63f2e26947e7c5758b635d9b77b73762284a7f745179741a86dfaaa3","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-766.103","next":"us/7-cfr-766.105"},"notice":"GroundRules: Original legal text. Not legal advice."}