3.2-504 - Loans. - Virginia Statutes

§ 3.2-504. Loans.

The Governor or his designee may approve a loan to any farmer who hassuffered the effects of a major disaster upon the recommendation of theCommissioner and subject to the following terms and conditions:

1. The assistance provided for in this section shall not be extended unlessthe farmer has applied for and received approval for a loan exceeding theamount requested pursuant hereto from any federal agency providing disasterrelief loans. Upon approval of a loan by such federal agency, the Governor orhis designee may approve a loan not to exceed $10,000.

2. The loan shall be available only for operating expenses for the farmingoperation.

3. No interest shall be charged for the loan.

4. Repayment shall be made within one year or upon receipt of loan funds fromany federal agency providing disaster relief, whichever is sooner. TheDepartment may require the farmer to provide sufficient security or to makeprovision for direct payment from federal lending agencies of the entireamount of the loan made pursuant to this chapter as a condition of grantingthe loan.

5. A maximum of $10,000 may be loaned any one farmer. The Governor at hisdiscretion may reduce or increase the maximum amount of the loan.

6. The availability of loans provided for in this section shall be based onand subject to the moneys accumulated in the Farmers Major Disaster Fundestablished in § 3.2-506.

(1978, c. 837, § 3.1-22.18; 2008, c. 860.)