7 CFR § 5001.508 - Mergers.

---
identifier: "/us/cfr/t7/s5001.508"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 5001.508 - Mergers."
title_number: 7
title_name: "Agriculture"
section_number: "5001.508"
section_name: "Mergers."
chapter_name: "RURAL BUSINESS-COOPERATIVE SERVICE, RURAL HOUSING SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "5001"
part_name: "GUARANTEED LOANS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107."
regulatory_source: "85 FR 42518, July 14, 2020, unless otherwise noted."
cfr_part: "5001"
---


# 5001.508 Mergers.

*Agency approval.* All borrower mergers or consolidations (herein referred to as “mergers”) require approval by the Agency and the lender. The Agency may approve a merger when—

(a) The resulting organization will be eligible for a guaranteed loan and assumes all the liabilities and acquires all the assets of the merged borrower;

(b) The merger is in the best interest of the government and the merging organization;

(c) The resulting organization can meet all required conditions as contained in specific loan agreements; and

(d) All property can be legally transferred to the resulting organization.