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Direct and Guaranteed Loans Available

By FSA

04/14/2015

Farm Service Agency (FSA) direct loans are available to purchase real estate, livestock, and farm equipment or provide for annual operating expenses. Loans are subject to eligibility and feasibility requirements. A $300,000 loan is available for both direct operating loans and direct farm ownership loans.

Other loans available directly through FSA include youth loans and Microloans. Youth loans are available to youth ages 10 through 21 to assist with agriculture projects. Youth loans have a $5,000 loan limit. Microloans, up to $50,000, are available to serve unique financial operating needs of beginning, niche and small family farm operations.

FSA’s guaranteed loan program has a limit of $1,392,000. A qualifying Lender originates the loan with their rates and terms and seeks a guarantee from FSA. The guarantee can be up to 95% depending on loan type and purpose. There is a one-time loan origination fee charged on FSA guaranteed loans, which is 1.5 percent of the guaranteed portion of the loan.

For more information, producers should contact their local FSA Farm Loan Programs office or visit www.fsa.usda.gov/farmloans.

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