(a) Borrower eligibility. The borrower must meet all the following requirements to be eligible for DBSA:

1. (1) The borrower must currently be operating the farm. Farmers who have rented out their land base for cash are not considered to be operating the farm.
2. (2) The borrower must have acted in good faith, and the borrower's inability to make the current or upcoming scheduled loan payments must be for reasons not within the borrower's control.
3. (3) The borrower cannot have more than one DBSA on each loan.

4. (4) The borrower does not have sufficient income available to pay all family living and farm operating expenses, other creditors, and debts to the Agency. This determination will be based on:

   1. (i) The borrower's actual production, income and expense records; and
   2. (ii) Any other records required by the Agency;
5. (5) For the next production cycle, the borrower must develop a feasible plan showing that the borrower will at least be able to pay all operating expenses and taxes due during the year, essential family living expenses, and meet scheduled payments on all debts, including Agency debts. The borrower must provide documentation required to support the farm operating plan.
6. (6) The borrower must not be in non-monetary default.
7. (7) The borrower must not be ineligible due to disqualification resulting from Federal crop insurance violation according to 7 CFR part 718.
8. (8) The borrower must not become 165 days past due before the appropriate Agency DBSA documents are executed.

(b) Loan eligibility. The loan must meet all the following requirements to be eligible for DBSA:

1. (1) To be considered for DBSA the loan must have been either an OL, FO, CL, SW or EM outstanding prior to September 25, 2024.
2. (2) All of the borrower's program and non-program loans must be current after the Agency completes DBSA for the scheduled payment installment.
3. (3) All FLP loans must either be current or less than 150 days past due at the time the complete application for DBSA is received by the Agency.
4. (4) The Agency has not accelerated the borrower's account.
5. (5) For any loan that will receive DBSA, the remaining term of the loan must equal or exceed 2 years from the due date of the DBSA agreement.
6. (6) The loan must not have an existing DBSA or DSA in place.
7. (7) The loan must not have been consolidated with any other loan that would not be eligible for DBSA on its own merits.