USDA acts to strengthen accountability in rural lending programs
The U.S. Department of Agriculture has removed ten lenders from participation in a federal rural lending program as part of a broader effort to strengthen accountability and protect public funds. The action applies to the USDA Rural Development OneRD Guaranteed Lending Program.
“The Trump Administration has absolutely no tolerance for the irresponsible and noncompliant actions of these lenders and has banned them from participating in USDA guaranteed lending programs,” said Secretary Rollins. “I will continue to protect the American taxpayer and ensure their hard-earned dollars are spent where they belong - on projects that revive and strengthen rural America.”
According to the department, the decision was based on findings of irresponsible and noncompliant lending practices. These lenders will no longer be allowed to take part in USDA guaranteed lending programs. USDA leadership stated that strict oversight is necessary to ensure taxpayer dollars are used responsibly and support projects that truly benefit rural America.
The ten removed lenders together hold about $620 million in delinquent loans. These loans represent nearly half of all delinquent loans within the Rural Development portfolio. The USDA said this level of delinquency raised serious concerns about program integrity and long-term risk to public investment.
The lenders affected by the decision include:
USDA officials explained that the action is meant to improve the overall performance of the program and allow stronger support for the more than 750 lenders that continue to meet federal standards. These remaining lenders play an essential role in helping rural businesses, farmers, and communities access affordable capital.
The OneRD Guaranteed Lending Program supports projects that improve rural life, including investments in internet access, power systems, transportation, housing, healthcare, and education. By tightening oversight, the USDA aims to increase trust in the program and ensure long-term benefits for rural economies.
USDA Rural Development continues to offer loans, grants, and guarantees that promote economic security, job creation, and community growth. Officials emphasized that responsible lending remains central to helping rural America thrive.
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