458 
‘‘SEC. 3202. PURPOSES OF LOANS. 
‘‘(a) DIRECT LOANS.—A direct loan may be made 
under this chapter only— 
‘‘(1) to pay the costs incident to reorganizing a 
farm for more profitable operation; 
‘‘(2) to purchase livestock, poultry, or farm 
equipment; 
‘‘(3) to purchase feed, seed, fertilizer, insecti-
cide, or farm supplies, or to meet other essential 
farm operating expenses, including cash rent; 
‘‘(4) to finance land or water development, use, 
or conservation; 
‘‘(5) to pay loan closing costs; 
‘‘(6) to assist a farmer in changing the equip-
ment, facilities, or methods of operation of a farm 
to comply with a standard promulgated under sec-
tion 6 of the Occupational Safety and Health Act of 
1970 (29 U.S.C. 655) or a standard adopted by a 
State under a plan approved under section 18 of 
that Act (29 U.S.C. 667), if the Secretary deter-
mines that without assistance under this paragraph 
the farmer is likely to suffer substantial economic in-
jury in complying with the standard; 
‘‘(7) to train a limited-resource borrower receiv-
ing a loan under section 3106 in maintaining 
records of farming operations; 
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459 
‘‘(8) to train a borrower under section 3419; 
‘‘(9) to refinance the indebtedness of a bor-
rower, if the borrower— 
‘‘(A) has refinanced a loan under this 
chapter not more than 4 times previously; and 
‘‘(B)(i) is a direct loan borrower under this 
subtitle at the time of the refinancing and has 
suffered a qualifying loss because of a natural 
or major disaster or emergency; or 
‘‘(ii) is refinancing a debt obtained from a 
creditor other than the Secretary; 
‘‘(10) to provide other farm or home needs, in-
cluding family subsistence; or 
‘‘(11) to assist a farmer in the production of a 
locally or regionally produced agricultural food prod-
uct (as defined in section 3601(e)(11)(A)), including 
to qualified producers engaged in direct-to-consumer 
marketing, direct-to-institution marketing, or direct- 
to-store marketing, business, or activities that 
produce a value-added agricultural product (as de-
fined in section 231(a) of the Agricultural Risk Pro-
tection Act of 2000 (7 U.S.C. 1632a(a))). 
‘‘(b) GUARANTEED LOANS.—A loan may be guaran-
teed under this chapter only— 
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‘‘(1) to pay the costs incident to reorganizing a 
farm for more profitable operation; 
‘‘(2) to purchase livestock, poultry, or farm 
equipment; 
‘‘(3) to purchase feed, seed, fertilizer, insecti-
cide, or farm supplies, or to meet other essential 
farm operating expenses, including cash rent; 
‘‘(4) to finance land or water development, use, 
or conservation; 
‘‘(5) to refinance indebtedness; 
‘‘(6) to pay loan closing costs; 
‘‘(7) to assist a farmer in changing the equip-
ment, facilities, or methods of operation of a farm 
to comply with a standard promulgated under sec-
tion 6 of the Occupational Safety and Health Act of 
1970 (29 U.S.C. 655) or a standard adopted by a 
State under a plan approved under section 18 of 
that Act (29 U.S.C. 667), if the Secretary deter-
mines that without assistance under this paragraph 
the farmer is likely to suffer substantial economic in-
jury due to compliance with the standard; 
‘‘(8) to train a borrower under section 3419; or 
‘‘(9) to provide other farm or home needs, in-
cluding family subsistence. 
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