By Jamie Martin
The U.S. Department of Agriculture has taken decisive action to remove ten lenders from participation in a federal rural loan program after identifying serious concerns related to lending practices. The move affects 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.”
USDA officials stated that the decision reflects a zero-tolerance approach toward irresponsible and noncompliant behavior. The department emphasized that public funds must be managed carefully and directed only toward projects that strengthen rural communities and protect taxpayers.
The lenders removed from the program collectively manage approximately $620 million in delinquent loans. This figure accounts for around 47% of all delinquent loans within Rural Development programs. USDA leaders said this level of risk required immediate action to ensure program stability.
The lenders affected by the decision include:
- Bank of Montgomery (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
- ReadyCap Commercial
By removing these institutions, the USDA aims to improve customer service and strengthen support for more than 750 approved lenders that continue to follow program rules. These lenders help provide essential financing for farmers, small businesses, and rural infrastructure projects.
The OneRD Guaranteed Lending Program plays a vital role in supporting rural prosperity. It helps fund improvements in broadband access, energy systems, transportation networks, housing, healthcare facilities, and education services.
USDA Rural Development continues to invest in rural America through loan guarantees, grants, and direct loans. Officials reaffirmed their commitment to responsible lending as a key tool for building strong rural economies and ensuring that government programs deliver long-term value.
Photo Credit: usda
Categories: National