What condition must be met for an advance to be considered beneficial to both the lender and the government?

The correct condition that must be met for an advance to be considered beneficial to both the lender and the government is that it must follow the guidelines of the FSA. Adhering to the guidelines ensures that the advance aligns with the objectives of the Farm Services Agency (FSA), which focuses on supporting sustainable agricultural practices and ensuring effective use of funds to foster economic stability in the agricultural sector. Compliance with these guidelines not only protects the interests of the government but also ensures that lenders are participating in programs designed to mitigate risks and promote responsible lending practices.

The other options, while they may relate to different aspects of lending, do not address the necessary alignment with the official guidelines set forth by the FSA. Covering operating expenses or repaying existing debts could be beneficial in specific scenarios, but without adherence to the established guidelines, an advance may not fulfill the larger goals of the lending program or the government policies aimed at supporting agriculture. Similarly, the idea that the advance must exceed a specified amount lacks relevance to the approval process established by the FSA. Thus, the focus on following FSA guidelines is crucial for maintaining the integrity and effectiveness of loan programs that aim to benefit both the lender and government objectives.