LOAN ASSESSMENTS.

SEC. 360. [7 U.S.C. 2006b] LOAN ASSESSMENTS. (a) In General.—The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant. (b) Determinations.—In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine— (1) the amount that the applicant will need to borrow to carry out the proposed farming plan; (2) the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base; (3) the goals of the proposed farming plan of the applicant; (4) the financial viability of the plan and any changes that are necessary to make the plan viable; and (5) whether assistance is necessary under this title and, if so, the amount of the assistance. (c) Contract.—The Secretary may contract with a third party (including those entities eligible to provide borrower training under section 359(b)) to conduct loan assessments under this section. (d) Review of Loans.— (1) In general.—Loan assessments conducted under this section shall include annual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this title to assess the progress of a borrower in meeting the goals for the farm or ranch operation. (2) Contracts.—The Secretary may contract with an entity that is eligible to provide borrower training under section 359(b) to conduct loan reviews under paragraph (1). (3) Problem assessments.—If a borrower is delinquent in payments on a direct or guaranteed loan made under this title, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency. (e) Guidelines.—The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.