FSA guaranteed loan servicing with a live clock on every deadline, and each filing prepared before it turns red
No missed guarantee deadlines; loss claims filed complete the first time.
See one case, screen by screen ↓Under 7 CFR 762 a lender services every guaranteed loan to a set of dates: status reports as of 31 March and 30 September, a borrower meeting and the first default status report within 45 days of the missed payment, the report again every 60 days until the default is cured, a restructure-or-liquidate decision within 90 days of default, and a liquidation plan and estimated loss claim within 150 days of the due date. The agency pays no interest after day 210. Certified Lenders also owe an annual analysis of each borrower.
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Every USDA guaranteed loan carries its own set of clocks under 7 CFR 762. A payment 30 days late puts the loan in default. The borrower meeting and the first default status report are due 45 days after the missed payment, then the report again every 60 days until the default is cured. The restructure-or-liquidate decision is due 90 days after default, the liquidation plan and estimated loss claim 150 days after the due date, and after day 210 the agency pays no more interest. On top of that come the status reports as of 31 March and 30 September and, for a Certified Lender, an annual analysis of every borrower.
Most coordinators keep those clocks in a calendar, a spreadsheet and the paper loan file. The rules are not hard; keeping a few hundred sets of them is. A slip shows up exactly when the loan goes bad: the lender cannot enforce the guarantee to the extent a loss results from negligent servicing, interest past day 210 is the bank's own, and a loss claim the agency sends back costs weeks the bank does not get paid for.
Estimated hours for one guaranteed loan from default to a filed claim, by hand and with the solution.
Six specialist agents keep every guarantee clock and pre-fill each filing before it turns red; the coordinator signs and the manager approves.
Lindmark Valley Bank in Storm Lake, Iowa, is a Certified Lender with 218 guaranteed loans and $166.9M guaranteed. It is Monday 12 October. Here is the day, screen by screen, in the working solution.
Overnight the clock keeper re-dated 1,284 dates on 218 loans from the loan note guarantees, the payment history and 7 CFR 762. Pettibone Orchards' second default status report went from 6 days to 5 and turned red. At 05:02 the default status reporter filled in its FSA-2248, shown beside the board.
“6 red · 5 days or less · 1 amber · inside 14 · 10 running · 0 missed in 2026”
Renee moves the board 21 days forward to Mon 2 Nov to see what would run out if nothing were signed. Fifteen clocks, 43 filings, and $4.40M of guarantee exposed on 7 loans. Fourteen of those filings are already prepared and waiting for her signature today.
“If nothing is signed by Mon 2 Nov: 15 clocks run out (43 filings) · $4.40M of guarantee exposed on 7 loans.”
OL-23-0207, $577,080 guaranteed. The $148,900 installment due 6 Jul is unpaid, 98 days past due, accrued interest $12,051. The cause comes from the servicing note of 2 Oct: a spring freeze on 21 Apr cut the apple crop by 55%. Cooperation from the 13 Aug meeting at the farm market, and the planned action: fall market sales of $212,400 to 10 Oct and an $86,400 crop insurance claim. She signs with the meaning of her signature.
Signature meaning: “I reviewed this report and its sources.”
The report goes to Dana Kroeger at the Storm Lake service center, five days early. The red tile becomes a fresh 65-day clock to the next report, due Wed 16 Dec.
“Signed by Renee Albrecht · sent to Dana Kroeger · Storm Lake service center · 5 days early”
Deadlines lays the next 30 days out by kind: 3 decisions, 1 loss claim, 5 default reports, 2 borrower meetings, a holder demand, status reports, line of credit certifications, 11 annual analyses, farm visits and lien continuations. Of 46 dates, 13 are ready for her and 9 are waiting on a borrower. Missed this year: 0.
Owen and Leah Brandt farm 1,640 acres of corn and soybeans with a 2,400-head wean-to-finish barn in Sac County. A PRRS outbreak in March cut hog sales; the $213,560 installment due 15 Jun is unpaid. Principal $978,760, guaranteed share $880,884, day 119 of the clock. The Brandts' restocking and 2027 crop plan arrived Friday, so the file is complete: 9 documents.
“Decide: restructure or liquidate · §762.143(b): within 90 days of default — Tue 13 Oct”
Four agents read the meeting notes, both default reports and the 2025 statements: net worth $1,836,400, current ratio 0.92, 2025 net farm income $96,400. The restructuring analyst builds the 2027 cash flow with the barn restocked in January, leaving $437,600 for debt service. The collateral and covenant watcher confirms $1,428,000 of collateral, liens perfected and hog mortality insurance in force.
Restructure: reschedule $1,001,895 over 7 years at 7.25%, first installment 15 Dec 2027, $187,528 a year, covering debt 1.12 times against the 1.10 policy, 70% loan-to-value. Liquidate: net recovery $787,600, a loss of $214,295 of which the agency pays $192,866 and the bank $21,429. Renee signs the restructure; Curt approves before anything is sent to the FSA office. The restructuring request, an updated default status report and a letter to the Brandts are drafted and wait for the signatures.
The agents never choose. The coordinator signs and the Ag Lending Manager approves.
Kessler Dairy went into default on 1 Jul; the liquidation plan and estimated loss claim are due Thu 29 Oct, day 150. The assembler built the worksheet line by line and found two gaps. The 9 Oct appraisal values the land, parlor and barns only, but the bank also holds a lien on the dairy equipment, estimated at $96,000 by Lakeview Auction Co. And the county treasurer's receipt for the $8,420 tax advance is not in the package.
“Left out, the claim overstates the loss — $321,395 instead of $225,395 — and the agency returns it.”
Both gaps fixed: estimated loss $225,395, the agency pays 90%, $202,856, and every figure is tied to its document. Eight checks pass, from the 150-day filing date to interest claimed inside the 210-day limit. Renee signs, Curt approves, and it goes to Dana Kroeger for agency review within 20 days.
The same Monday, seen by the four people at the bank who carry it — what their week looked like, and what it looks like now.
Six specialist agents keep every guarantee clock and pre-fill each filing before it turns red; the coordinator signs and the manager approves.
Computes every guaranteed loan's dates from the loan note guarantee, the payment history and 7 CFR 762, and re-dates them every night and whenever a payment or event lands.
Drafts the semiannual status reports as of 31 March and 30 September from the core loan system, noting what changed since the last report.
Drafts the agency's default status form at default and every 60 days from the servicing notes, the borrower meeting and the payment history — and, after a decision, the restructuring request or notice of liquidation.
Reads the balance sheet, income statement and the borrower's plan, builds next year's cash flow with the bank's planning prices, and compares rescheduling with liquidation.
Builds the liquidation plan and the estimated and final loss claims with every attachment, and checks the appraisal covers all collateral, interest stays inside 210 days and advances above the limit are authorized.
Watches annual financial statements, farm visits, insurance, lien continuations and holder repurchase demands, and prepares the annual analyses.
Signs every filing; the ag lending manager approves decisions and claims. The agents propose; a named person decides.
The coordinator and loan officers can ask in plain words — or have a letter or filing drafted for them to sign.
When is each Brandt Ridge date, and which rule sets it?
The clock runs from the missed installment of 15 Jun: default 15 Jul (30 days late); meeting held 28 Jul (by day 45); decision Tue 13 Oct (90 days after default); plan and claim 12 Nov (day 150); interest stops 11 Jan 2027 (day 210). The next default status report is due by 24 Nov.
Is a restructure feasible for Brandt Ridge?
Yes, at 7 years. Rescheduling $1,001,895 at 7.25% makes the installment $187,528. With the barn restocked in January, the 2027 cash flow leaves $437,600 for debt service against $392,028 of payments — 1.12 times, above the 1.10 policy. Liquidating instead would lose $214,295, of which the agency pays $192,866.
Would the agency return the Kessler loss claim as it stands?
Likely, for two reasons. The appraisal values the real estate only, but the bank also holds a lien on the dairy equipment, estimated at $96,000 — leaving it out overstates the loss at $321,395. And the receipt for the $8,420 tax advance is not attached, although the advance was authorized.
Draft the meeting letter to Vos Brothers for Wednesday
Drafted. Vos Brothers Grain missed the 1 Sep installment and went into default on 1 Oct; the meeting must be held by Fri 16 Oct, 45 days after the due date. The letter confirms Wed 14 Oct, 10:00 at the farm with Jesse Ortman and asks for the 2026 crop records and a list of grain in storage. It is in Jesse's outbox for review.
13 screens from the working solution, on its sample data. Pick one to see it large.
Everything that differs between banks is a setting; the dates set by regulation are shown read-only with their rule.
| Setting | Default | Choose from |
|---|---|---|
| Prepare each filing | 10 business days before the date | 3 to 20 business days |
| Reminders to the signer and the loan officer | 5 and 2 business days before | 5 and 2 · 7, 3 and 1 · 3 business days before |
| Bank target for status reports after 31 Mar and 30 Sep | Within 31 days | 31 · 21 · 14 days |
| Escalate a default with no decision to the Ag Lending Manager | 15 days before the 90-day date | 10 · 15 · 30 days before |
| Lender status | Certified Lender (CLP) | CLP · PLP · Standard Eligible Lender |
| Restructuring feasibility — debt coverage the cash flow must reach | 1.10 times | 1.05 · 1.10 · 1.15 times |
| Who signs filings to the agency | Renee Albrecht | Any named coordinator |
| Who approves decisions and loss claims | Curt Vandermolen | Ag Lending Manager or credit committee |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample bank data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = the rule's own number (7 CFR 762.143 and 762.149, eCFR). People, farms and the bank named on this page are fictional — characters and sample data in the working solution.
Under 7 CFR 762 a lender services every guaranteed loan to a set of dates: status reports as of 31 March and 30 September, a borrower meeting and the first default status report within 45 days of the missed payment, the report again every 60 days until the default is cured, a restructure-or-liquidate decision within 90 days of default, and a liquidation plan and estimated loss claim within 150 days of the due date. The agency pays no interest after day 210. Certified Lenders also owe an annual analysis of each borrower.
The guarantee clock keeper computes each loan's dates from the loan note guarantee, the payment history and 7 CFR 762 every night, and re-dates them whenever a payment or event lands. Each date shows its rule. A clock turns amber inside the bank's lead time and red at its 5-day reminder, and the filing is prepared before then.
Yes. The default status reporter fills in the agency's default status form from the servicing notes, the borrower meeting and the payment history — amount and days past due, cause, cooperation and planned action — with a link to the source on every line. It never states a borrower fact that is not in a note or document.
No. The restructuring analyst builds the cash flow and lays both options side by side — new installment, debt coverage against your policy, loan-to-value, net recovery and the loss split between the agency and the bank. The coordinator signs and the Ag Lending Manager approves the decision.
That is the loss claim assembler's job. It checks the appraisal covers all collateral under the bank's liens, interest stays inside the 210-day limit, protective advances above $5,000 have written authorization on file and every figure has its document. A claim with an open gap is never sent.
No. Agents prepare; the coordinator reviews and signs every filing, with the meaning of the signature recorded, and the Ag Lending Manager approves every decision and loss claim before anything is sent. Every draft and signature is on the audit trail.
Yes. When filings are prepared, when reminders go out, the bank's status report target, when an undecided default is escalated, your lender status, the restructuring coverage threshold, who signs and who approves are all settings. The agency's own dates are fixed and shown read-only.
The Agentic Solution Engine builds and deploys it from your requirements — your servicing procedures, credit policy and a sample of your guaranteed loan files — and it goes live once every quality gate has passed. We will walk you through it on your own loans first.
We’ll run FSA Guaranteed Loan Servicing on a sample of your own guaranteed loan files.