Provides low-interest loans for land and building acquisition and construction, machinery and equipment purchases, and working capital up to $200,000 or 40% of the total eligible project cost, whichever is less.

 

 

Machinery and Equipment Loan Fund
Provides low-interest loan financing to acquire and install new or used machinery and equipment or to upgrade existing machinery and equipment up to $500,000 or 50% of the total eligible project cost, whichever is less.

 

 

Next Generation Farmer Loan Program
The Next Generation Farmer Loan Program (NGFLP) encourages lenders to finance beginning farmers by allocating a portion of the Commonwealth’s private activity bond volume cap to first-time farmer projects.  The loan is made at the lender’s credit standards and other terms and conditions.  However, because the program exempts the lender from owing Federal, State, or county income taxes on the interest it would earn from the loan, the lender can offer a lower interest rate than it usually would offer.

 

 

The CDC/504 loan program, part of the federal Small Business Administration, is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses.

 

 

USDA Farm Service Agency Direct Loans (Ownership Loans)
"Direct" farm loans are made by FSA with Government funds.  The FSA also services these loans and provides their Direct loan customers with supervision and credit counseling so they have a better chance for success. Farm Ownership, Operating, Emergency and Youth loans are the main types of loans available under the Direct program.  Direct loan funds are also set aside each year for loans to minority applicants and beginning farmers

 

 

FSA guaranteed loans provide lenders (e.g., banks, Farm Credit System institutions, credit unions) with a guarantee of up to 95 percent of the loss of principal and interest on a loan. Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender's normal underwriting criteria.
FSA guaranteed loans are for both Farm Ownership and Operating purposes. Like the Direct Loan Program, a percentage of Guaranteed Loan funds is targeted to beginning farmers and ranchers and minority applicants.