The U.S. Department of Agriculture has officially moved to terminate the participation of ten lenders from its Rural Development OneRD Guaranteed Lending Program. This regulatory action, announced Tuesday, comes as a direct response to what federal officials have identified as irresponsible behavior and failure to comply with established standards.
Agriculture Secretary Brooke Rollins emphasized that the administration's decision is rooted in a commitment to fiscal responsibility. Rollins stated that the move is intended to safeguard American taxpayers by ensuring that federal funds are directed toward projects that serve their intended purpose: the revitalization and strengthening of rural America. The ban prevents these specific institutions from participating in any USDA guaranteed lending programs moving forward.
Lenders Affected by the Ban
The list of institutions removed from the OneRD Guaranteed Lending Program includes a diverse group of banking and credit union entities:
- Bank of Montgomery 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
Impact on Program Delinquencies
The removal of these ten lenders is tied to significant financial irregularities within their respective portfolios. The USDA reported that the collective delinquent loans held by these ten institutions amount to approximately $620 million. To put this figure into perspective, this total represents about 47% of all delinquent loans managed under the Rural Development program. By purging these lenders, the department seeks to mitigate further issues and improve service quality for the more than 750 remaining lenders who continue to participate in the OneRD Guaranteed Lending Program.
The USDA noted that stakeholders looking for information regarding current participating lenders can utilize the Lender Lens website provided by the department. This action is framed as a necessary step to maintain the integrity of rural development initiatives and ensure higher standards of compliance across the lending network.