Once a line of credit is established, is written concurrence from an FSA agency official required for future advances?

Once a line of credit is established, is written concurrence from an FSA agency official required for future advances?

• A. Yes
• B. No
• C. Only for the first advance
• D. It varies by lender

Answer: (B)

Once a line of credit is established, written concurrence from an FSA agency official is not required for future advances. This means that after the initial agreement is in place, the borrower can access funds as needed up to the credit limit without having to seek additional approval from the agency each time. This streamline process is designed to support efficient access to funds for operational needs, allowing borrowers to manage their cash flow effectively. In contrast, some options suggest that concurrence is needed for various circumstances, which would obligate the borrower to go through additional approval processes that could delay access to funds. However, the nature of a line of credit inherently provides the borrower with autonomy in accessing their credit, assuming they adhere to the initial terms outlined in the credit agreement.

Once a line of credit is established, written concurrence from an FSA agency official is not required for future advances. This means that after the initial agreement is in place, the borrower can access funds as needed up to the credit limit without having to seek additional approval from the agency each time. This streamline process is designed to support efficient access to funds for operational needs, allowing borrowers to manage their cash flow effectively.

In contrast, some options suggest that concurrence is needed for various circumstances, which would obligate the borrower to go through additional approval processes that could delay access to funds. However, the nature of a line of credit inherently provides the borrower with autonomy in accessing their credit, assuming they adhere to the initial terms outlined in the credit agreement.