To be eligible for assistance, applicants must be family farmers, citizens, non-citizen nationals or legal resident aliens of the United States or U.S. territories, and be able to demonstrate one year of sufficient farm managerial experience. You must also meet all of the following:
Applicants are automatically not eligible if either of the following apply:
Eligible applicants may obtain direct loans for up to a maximum indebtedness of $300,000, and guaranteed loans for up to a maximum indebtedness of $1,392,000 (amount adjusted annually for inflation).
The repayment term may vary, but typically it will not exceed 7 years for intermediate-term purposes.
Annual operating loans are generally repaid within 12 months or when the commodities produced are sold. In general, loan funds may be used for normal operating expenses, machinery and equipment, real estate repairs, and refinancing debt.
7 years | |
Direct - Varies, Guaranteed - Market | |
Direct - $300,000, Guaranteed - $949,000 | |
Varies | |
None | |
Direct - 0, Guaranteed - 1% |
To apply for a direct operating loan, applicants must submit an application form (FSA-2001, "Request for Direct Loan Assistance") and all other required documentation to their local USDA Service Center or FSA County Office. Please follow guidance on “How to Complete an FSA Loan Application” found on the FSA Fact Sheet. Forms can be located on FSA's Farm Loan Programs Direct Loan Application Forms and Instructions page.
To apply for a guaranteed loan, visit your lender who will arrange for the guarantee.
For more information about FSA loan programs, please visit FSA's Farm Loan Programs homepage.
You may also obtain information through your local FSA office or USDA service center. To locate the office nearest you, visit the USDA Service Locator page.
10.407 | |
Program not specific to American Indians and Alaska Natives, but they are eligible |