THE WHITE HOUSE
                                
                  Office of the Vice President
_____________________________________________________________________________
For Immediate Release                                  Contact:
Monday, February 8, 1999                          (202) 456-7035

VICE PRESIDENT GORE ANNOUNCES FASTER AND MORE EFFICIENT LOAN PROGRAM FOR
                       AMERICA'S FARMERS
                                
     Washington, DC -- Vice President Gore announced today that under a new
Agriculture Department policy, guaranteed farm ownership and operating loan
procedures will be made faster and more efficient for farmers across America.

     These changes, published as a new rule in the Federal Register later
this week will: 1) reduce the time required to approve lenders' applications
for guarantees; 2) make the loan approval process more consistent; and, 3)
reduce the paperwork required. The goal is a faster and more efficient
program. 

     "Changing our procedures recognizes that lenders with sufficient
agricultural lending experience are qualified to use some of their own loan-
approval procedures," Vice President said.  "This new policy will help expand
the number of lenders participating in the loan program by making  it easier
to use.  For example, for loans under $50,000, the application form will be
cut from six pages to one."

     Changes to the loan guarantee program include:

         Agency approval of documentation for loans under $50,000 is reduced or
     eliminated.  This substantially reduces the administrative costs borne
     by the lender.

         The Certified Lender Program has been expanded.

         A new Preferred Lender Program for experienced lenders with high volume
     and low losses is instituted.  Lenders inform USDA's Farm Service
     Agency, who administers the program, about their credit management
     systems.  After approval of the lender's procedures, the department does
     not check individual normal operating loans.   The official application
     form consists of one page, and approval is automatic if the Agency does
     not respond within 14 days of submission of a complete application.

     Other changes include:  redesigned and consolidated forms to reduce the
paperwork burden; reduced requirements for historical documentation; reduced
appraisal requirements, in line with the lender's regulators; and expanded
purposes for which lines of credit may be used.  The rule will also grant
additional servicing authority to lenders, relax annual loan analysis
requirements for strong loans, and authorize emergency advances in certain
circumstances.

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