WASHINGTON — The U.S. Department of Agriculture Farm Service Agency said the loan limit for its Guaranteed Loan Program has been increased to $1,112,000, effective Oct. 1.
The limit is adjusted annually based on the “Prices Paid to Farmers Index,” compiled by the National Agricultural Statistics Service.
Enhance ability
The increased limit will enhance the agency’s ability to meet the credit needs of farmers and ranchers throughout the country.
The Guaranteed Loan Program allows commercial and farm credit lenders to extend credit to qualified applicants, who otherwise would not meet their standard lending criteria.
Participating lenders can use the Guaranteed Loan Program to strengthen a loan’s viability through a guarantee of up to 95 percent of the loan amount.
Farmers interested in guaranteed loans should apply through a conventional lender.
Farm Service Agency also offers the Direct Loan Program as an alternative for those unable to obtain financing from commercial credit sources.
Direct farm loans are government-funded, and made by Farm Service Agency. The loan limit for loans under the Direct Program is $300,000 (except for Emergency Loans).
How to apply
Farmers interested in applying for a direct loan should contact their local FSA office. To find an FSA office, visit http://offices.sc.egov.usda.gov/locator/app.
