(a) For eligible facility loan commodities other than sugar, the term of the loan will be 7, 10, or 12 years, based on the total loan principal, from the date a promissory note and security agreement is completed on both the partial and final loan disbursements. The applicant will choose, if applicable, a loan term when submitting the loan application and total cost estimates.
(1) For a loan with the principal of $100,000 or less, the term is 7 years.
(2) For loans from $100,000.01 through $250,000, the borrower will choose a term of 7 or 10 years.
(3) For loans from $250,000.01 through $500,000, the borrower will choose a loan term of 7, 10, or 12 years.
(b) No extensions of the loan term will be granted. The loan balance and all related costs are due at the end of the loan term.
(c) For a sugar-related loan:
(1) CCC, at its discretion, may authorize a maximum loan term of 15 years. The minimum loan term of a sugar-related loan is 7 years.
(2) The loan balance and costs are due at the end of the loan term, which will be established on the date the promissory note and security agreement is executed.