Low interest loans are available through a variety of state and federal programs. Each program consists of a different partnership of local service providers, lenders and borrower eligibility requirements. On the left of this page, you will see links pertaining to various categories for which loans can be used. Below are brief descriptions of the loans that are available as well as links to specifics about those loans.
With the $100 million in dedicated funding available through the First Industries Fund, agribusiness has unprecedented access to state money created specifically for them. Low interest loans for land, buildings, machinery and equipment are available through the Small Business First Program and the Machinery and Equipment Loan fund. The First Industries Fund’s loan guarantee program can also add extra assurances by guaranteeing 50% of the borrower’s loan.
The Next Generation Farmer Loan Program encourages lenders to finance beginning farmers by exempting the lender from owing Federal, State, or county income taxes on the interest it would earn from the loan. This allows the lender to offer a lower interest rate that it would usually offer.
The Pennsylvania Industrial Development Authority has a long-standing reputation for providing effective low interest loans on land and buildings. Recently, it has changed certain requirements, which have in the past hindered access by agribusiness. With the changes, PIDA becomes an effective tool for larger land and real estate deals.
The Pennsylvania Working Capital Growth Fund is a partnership between the Pennsylvania Department of Community and Economic Development and PNC Bank, which has two lines of credit that have been made available to agriculture.
The U.S. Department of Agriculture continues to offer its Farm Service Agency loans using federal money to provide direct loans to borrowers as well as guaranteeing loans from private banks.
The Federal Small Business Administration, through its 504 loan program has been providing agribusiness with opportunities to purchase land at lower interest rates with a higher cap than most of the other state and federal programs.