A bill in the last 1.9T covid stimulus (the 'American Rescue Plan') included debt forgiveness for certain USDA loans. 

This debt forgiveness is nominally proffered to qualifying loans between USDA and certain 'socially disadvantaged' groups, at a rate of 120% of the qualifying loan balance on 1/1/2021, as the debt forgiveness is generally a taxable event.

Qualifying loans include a variety of loan types, including land and operating loans, grain bin loans, and commodity grain loans.  A few specific loan types are excluded.

Eligible socially disadvantaged groups has a specific definition from from a Farm Bill ~20 or more years ago.  This definition includes a list of ethnicities of individuals who, in general, identify as other than white.  USDA's email today specifically notes that gender (specifically, claiming to be female) is not a cause to claim socially disadvantaged status.

Many individuals, on this board, and elsewhere,  have pointed out that this specific bill, originally offered by newly-seated Senator Raphael Warnock of GA and passed by the House and Senate, could violate basic racial anti-discrimination laws and USDA policies.  Secondarily, there is some question as to what 'identity' a specific individual could choose to assert, what current ethnicity/identity, if any, a producer has on file at USDA, what proof an individual could proffer as evidence of asserting a certain identity, and whether any proof of identify should be required at all.  As a third lesser point, some individuals have noted that forgiveness beyond 100% of a loan obligation is somewhat unusual.


If there is a loop, you are now aware of a goodly part of it.