Langston & Lott, PLLC
Black Farmers Discrimination
Langston & Lott, PLLC Black Farmers Discrimination
Black Farmers Discrimination
Black Farmers Discrimination
Part of the Inflation Reduction Act (IRA), signed by President Biden in August 2022, aims to provide “Discrimination Financial Assistance” to farmers, ranchers, and forest landowners who have faced loan discrimination prior to January 1, 2021, due to their race, gender, sexual orientation, or other categories. The USDA has a long-standing history of discrimination in its lending process. The act provides a total of $2.2 billion for these claims, with a maximum of $500,000 available per claim.
While the act is a positive step towards addressing discrimination, there are still many unanswered questions regarding the approval process. For instance, what qualifies as discrimination and who is eligible for financial assistance? The approval process is also expected to be lengthy and involve an extensive review of evidence and documentation related to discrimination. Proving discrimination may require indirect financial proof and an examination of the conduct, actions, or decisions of a loan officer. In general, discrimination may occur when a person is denied a loan based on that person’s race, sex, or gender; discouraged from applying for a loan; when thorough information about available funding options is not provided; and when excessive collateral requirements that are unreasonable or discouraging to the applicant.
To be eligible for Discrimination Financial Assistance under the IRA, the discrimination must have occurred specifically in relation to USDA farm lending programs. Eligibility depends on the loan type and where the discrimination occurred:
USDA Loans
Direct FSA Farm Loans: Discrimination in connection with these types of loans creates eligibility for assistance.
Non-Farm Loans at USDA: Discrimination in USDA programs that do not involve farm loans does not create eligibility.
Private Lenders
Discrimination by a private lender for an FSA-guaranteed loan: This creates liability. It is possible that discrimination by the private lender alone (not the FSA) will also qualify.
Non-FSA Guaranteed Private Loans: Discrimination on non-FSA guaranteed loans generally does not qualify for Discrimination Financial Assistance.
There is a deadline by which funding for the program must be used, so it is important not to delay in filing a claim. Waiting too long may result in the funds being exhausted before the deadline, leaving you without assistance. Therefore, it is crucial to seek legal advice and guidance as soon as possible to determine if you qualify and to take action before it is too late. Determining eligibility for Discrimination Financial Assistance can be challenging, and consulting with a skilled attorney can help evaluate your legal rights and how to proceed with a claim. Our Discrimination Attorneys are now evaluating claims regarding the Inflation Reduction Act. Call us now for a free case evaluation. There is NO FEE unless we WIN your case.
Remember, you don't pay unless we recover compensation for you. You can schedule your free consultation and case review today. Get started with no upfront fees by calling or filling out the form below. The law limits the time you have to file a claim, so let us help you get started today.