10.128: Heirs’ Property Relending Program
Alternate Name: HPRP
Overview
Program Number
10.128
Status
Active
Last Modified
Sept. 9, 2022
Date Posted
Sept. 9, 2022
Objective
As specified in 7 U.S.C. 1936c(c), HPRP provides loan funds to intermediaries who will re-lend loan funds to individuals and entities with undivided ownership interests in order to resolve ownership and succession issues relating to a farm owned in common by multiple owners. .
Type of Assistance
F - Guaranteed/Insured Loans
Applicant Eligibility
(a) Eligible entity types. The types of entities eligible to serve as intermediaries for HPRP are cooperatives, credit unions, and nonprofit organizations.
(b) Certification. The intermediary must be certified as a community development financial institution under 12 CFR 1805.201 (or successor regulations) to operate as a lender.
(c) Citizenship. The applicant and the member of the intermediary must be U.S. citizens.
(d) Experience. The intermediary must have:
(1) At least 5 years of experience assisting socially disadvantaged farmers and ranchers (as defined in subsection (a) of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) or limited resource or new and beginning farmers and ranchers, rural businesses, cooperatives, or credit unions;
(2) The requisite experience and capability in making and servicing agricultural and commercial loans that are similar in nature to HPRP. If consultants will be used, the agency will assess the intermediary’s experience in choosing and supervising consultants;
(3) The legal authority necessary to carry out the proposed loan purposes and to obtain, provide security for, and repay the proposed loan; and
(4) Demonstrated ability and willingness to repay the loan based on the intermediary’s financial condition, managerial capabilities, and other resources.
Beneficiary Eligibility
(a) The eligibility requirements for the ultimate recipient are:
(1) Ultimate recipients may be individuals or legal entities, with authority to incur the debt and to resolve ownership and succession of a farm owned by multiple owners; and
(2) As a condition of receiving a loan from the intermediary, the ultimate recipient must agree to complete a succession plan.
(b) The intermediary will determine the eligibility of the applicant to become the ultimate recipient in accordance with the rules provided in this subpart and in accordance with the intermediary’s relending plan as approved by the agency in the HPRP loan agreement.
Additional Information
Grant Awards
Heirs’ Property Relending Program direct grants
Grant Opportunities