Finance
A USDA Section 502 Direct Loan is:
AA loan made by a private lender with USDA guarantee
BA loan made directly by USDA to eligible low-income rural borrowers✓ Correct
CA loan for purchasing farmland for agricultural production
DA commercial loan for rural business development
Explanation
USDA Section 502 Direct Loans are made directly by the USDA (not private lenders) to very-low and low-income borrowers in eligible rural areas. They offer interest rate subsidies that can reduce the effective interest rate significantly for qualifying borrowers.
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