USDA Bars 10 Lenders Over High Bad-Loan Rates

The US Department of Agriculture’s OneRD program provides government guarantees for four rural development financing programs, enabling private banks and credit unions to lend to rural businesses, infrastructure and energy projects. Failures in underwriting and loan servicing can shift losses to taxpayers, making lenders’ underwriting quality and regulatory compliance critical to the program’s viability.

The USDA announced on May 12, 2026, that it had revoked or would not renew the eligibility of 10 institutions, including Celtic Bank, Byline Bank and ReadyCap Commercial. Their delinquent loans totaled about $620 million, accounting for 47% of delinquent rural development loans. On June 11, Senator Joni Ernst asked the Small Business Administration to examine eight of the institutions that remained in its 7(a) program, while industry groups criticized the USDA’s removal process for lacking adequate notice and an opportunity to appeal.