USDA removes 10 lenders from rural development loan program over delinquency concerns

The U.S. Department of Agriculture has revoked the approved lender status of 10 financial institutions in its Rural Development OneRD Guaranteed Lending Program, citing “irresponsible and noncompliant” lending practices associated with a significant portion of delinquent loans.

Agriculture Secretary Brooke Rollins stated these lenders are barred from further participation in USDA guaranteed lending programs as the administration strengthens oversight of federally backed rural financing. The USDA reports the affected lenders hold approximately $620 million in delinquent loans, or about 47% of all delinquencies in the Rural Development portfolio.

The lenders removed from the program are BOM Bank, Byline Bank, Celtic Bank, Community Bank & Trust – West Georgia, Genisys Credit Union, Greater Nevada Credit Union, North Avenue Capital, Optus Bank, U.S. Eagle Federal Credit Union, and ReadyCap Commercial. The USDA stated this action aims to improve program integrity and focus support on the more than 750 remaining lenders in the OneRD Guaranteed Lending Program.

USDA Rural Development administers loan, grant, and loan guarantee programs to support economic development and infrastructure investment in rural America, including broadband, utilities, transportation, healthcare, housing, and business development.