Brad Jones financed his swine operation with a Direct Operating loan from FSA. The current principal balance is $150,000. If Brad and his sister form a partnership to produce grain and apply for a $300,000 loan, what can the loan approval official do?

The correct choice in this situation is that the loan approval official can request additional information before making a decision. When reviewing a new loan application, especially in agriculture finance where the applicant has existing obligations, it is critical for the loan officer to assess the overall financial situation of the applicants, including their existing debts and the viability of the new venture.

By requesting additional information, the loan official can gain deeper insight into the partnership's financial projections, cash flow, and the risks associated with Brad’s existing debt. This approach allows the official to make a well-informed decision considering both Brad's current financial obligations and the partnership's potential to repay the new loan.

This practice is crucial in financial decision-making as it aligns with responsible lending standards that ensure borrowers can manage their debt effectively without overextending themselves. Thus, acquiring further information is a prudent step before deciding on loan approval.