BORROWER TRAINING.

SEC. 1818. BORROWER TRAINING. (a) In General.— Subtitle D (7 U.S.C. 1981 et seq.) is amended by adding at the end the following new section: “SEC. 359. BORROWER TRAINING. “(a) In General.— The Secretary shall enter into contracts to provide educational training to all borrowers of farmer program direct and guaranteed loans made under this title in financial and farm management concepts associated with commercial farming. “(b) Contract.— “(1) In general.— The Secretary may contract with State or private providers of farm management and credit counseling services (including a community college, the extension service of a State, a State department of agriculture, or a nonprofit organization) to carry out this section. “(2) Consultation.— The Secretary may consult with the chief executive officer of a State concerning the identity of the contracting organization and the process for contracting. “(c) Eligibility for Loans.— “(1) In general.— Subject to paragraph (2), to be eligible to obtain a direct or guaranteed loan under this title, a borrower must obtain management assistance under this section, appropriate to the management ability of the borrower (as determined by the appropriate county committee established pursuant to section 332, during the determination of eligibility for the loan). “(2) Loan conditions.— The need of a borrower who satisfies the criteria set out in section 302(a)(2) or 311(a)(2) for management assistance under this section shall not be cause for denial of eligibility of the borrower for a direct or guaranteed loan under this title. “(d) Guidelines and Curriculum.— The Secretary shall issue regulations establishing guidelines and curriculum for the borrower training program established under this section. “(e) Payment.— A borrower shall pay for training received under this section, and may use funds from operating loans made under subtitle B to pay for the training. “(f) Waivers.— The Secretary may waive the requirements of this section for an individual borrower on a determination by the county104 STAT. 3830 committee that the borrower demonstrates adequate knowledge in areas described in this section.”. (b) Operating Loan Purposes.— Section 312(a) (7 U.S.C. 1942(a)) is amended— (1) by striking “and” at the end of paragraph (11); and (2) by inserting before the period at the end the following: “, and (13) borrower training under section 359”.