If you are an aspiring farmer or an established farmer who wants to expand your business, help is available. The USDA (United States Department of Agriculture) Farm Service Agency provides a variety of USDA farm loans programs for people who need financial support in their agricultural endeavors. If you are considering applying for a loan to cover the cost of land or equipment, read on to find out if this could be the answer for you.
These loans are designed to cover the cost of buying land, expanding an existing operation, or repairing or replacing land, buildings, and/or equipment that have been damaged by a natural disaster such as a hurricane. Funding is specifically meant for those who are unable to obtain credit elsewhere, so if you have tried to borrow from a traditional bank with no luck, this may be an option for you. As a result, the loan is meant to be temporary, bridging the gap until such a time when the borrower can qualify for a commercial credit program.
The loan programs available vary based on your needs and available funds. If you're already working with a bank or commercial lender but are not able to qualify for a loan, you may be able to get a guaranteed loan through the agency. This program protects the funder from default. You can also get a Direct Loan through the USDA. And, if you're a farmer who wants to subdivide and sell your land, the USDA will guarantee those loans as well.
In addition to those options, you can also apply for a conservation loan. This is dedicated funding to help you establish a conservation plan on your existing farm or ranch. The plan must be reviewed and approved by the USDA prior to the loan being awarded.
The program also specifically support groups who are traditionally underrepresented in the agricultural field. For example, dedicated funds are set aside for women and ethnic minorities who are attempting to buy a farm or ranch.
Those eligible for this type of loan include US citizens who have not previously defaulted on a loan of this kind. Other requirements vary based on loan applied for and other circumstances; when you start the application process, you will be assigned a loan officer who will help you to establish eligibility for funding.
In addition, applicants must create a detailed business plan. This document describes the mission and vision for your outfit, outlines your assets and liabilities, provides information on how your products will be sold, and proves financial sustainability. A guide for preparing a business plan, which includes detailed templates, is available through the agency.
To apply for USDA farm loans, your first step should be to visit the agency website. This location has all the information and documents that you need to get started in the process of funding your agricultural business. Within a few days of submitting your complete application, you will be contacted to discuss your request. A final loan decision will typically be made within 60 days. If your loan is not approved, there are options for you to appeal or mediate your loan request through the USDA.
These loans are designed to cover the cost of buying land, expanding an existing operation, or repairing or replacing land, buildings, and/or equipment that have been damaged by a natural disaster such as a hurricane. Funding is specifically meant for those who are unable to obtain credit elsewhere, so if you have tried to borrow from a traditional bank with no luck, this may be an option for you. As a result, the loan is meant to be temporary, bridging the gap until such a time when the borrower can qualify for a commercial credit program.
The loan programs available vary based on your needs and available funds. If you're already working with a bank or commercial lender but are not able to qualify for a loan, you may be able to get a guaranteed loan through the agency. This program protects the funder from default. You can also get a Direct Loan through the USDA. And, if you're a farmer who wants to subdivide and sell your land, the USDA will guarantee those loans as well.
In addition to those options, you can also apply for a conservation loan. This is dedicated funding to help you establish a conservation plan on your existing farm or ranch. The plan must be reviewed and approved by the USDA prior to the loan being awarded.
The program also specifically support groups who are traditionally underrepresented in the agricultural field. For example, dedicated funds are set aside for women and ethnic minorities who are attempting to buy a farm or ranch.
Those eligible for this type of loan include US citizens who have not previously defaulted on a loan of this kind. Other requirements vary based on loan applied for and other circumstances; when you start the application process, you will be assigned a loan officer who will help you to establish eligibility for funding.
In addition, applicants must create a detailed business plan. This document describes the mission and vision for your outfit, outlines your assets and liabilities, provides information on how your products will be sold, and proves financial sustainability. A guide for preparing a business plan, which includes detailed templates, is available through the agency.
To apply for USDA farm loans, your first step should be to visit the agency website. This location has all the information and documents that you need to get started in the process of funding your agricultural business. Within a few days of submitting your complete application, you will be contacted to discuss your request. A final loan decision will typically be made within 60 days. If your loan is not approved, there are options for you to appeal or mediate your loan request through the USDA.
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If you wish to learn more about USDA farm loans check this link (www.farmloancenter.com/) to the Farm Loan Center. We also offer commercial real estate loans processed by our experienced Agricultural Brokerage Department and you can find us online at http://www.farmloancenter.com now.
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