If you're interested in a career in agriculture and dream of one day owning your own business, USDA farm loans can make your dream come true. This program strives to provide new and established farmers with the funding necessary to create or expand their businesses. In this article, you'll find information on the types of programs available and how to apply for funds through the USDA.
You can attain a loan for the funds needed to purchase or make a down payment on land and buildings; to expand your existing business; to repair farms damaged by flooding or natural disaster; or to fund daily operations and equipment. If you have applied for business credit elsewhere and been denied, this program may be an alternate option for you.
One loan option, the Guaranteed Loan Program, is made by a commercial bank and guaranteed by the service; this means that the bank is protected if the consumer defaults on the payments. The Direct Loan program, by contrast, is funded by the service, while the Land Contract Guarantee helps match established farmers who want to sell all or part of their land to new or otherwise disadvantaged farmers.
In addition to those options, you can also apply for a conservation loan. This is dedicated funding to help you establish a conservation plan on your existing farm or ranch. The plan must be reviewed and approved by the USDA prior to the loan being awarded.
For women, minorities, and other groups underrepresented in the field of agriculture, the USDA farm loan is an excellent choice. The agency sets aside dedicated funds each year to provide loans for these groups, in order to promote farming as a career for those who have not traditionally sought this path.
Eligibility varies based on the type of loan you apply for, but in general, you must be a US citizen who has not previously defaulted on a loan of this type. Your loan officer will guide you through additional requirements as you begin the application process.
Another critical step for applicants is the business plan. This document will inform how your business operates through the period of the loan and beyond. You can find sample plans and other resources on the agency's website, which will be particularly helpful if this is your first time creating a business plan.
If it sounds like the USDA farm loans program is a good option for you, you should visit the agency website. On their page, you'll find detailed information about all of your options, as well as the ability to apply online and submit documents when you've decided what type of loan you'd like to pursue. After applying, you'll be assigned a loan officer who will meet with you to discuss your request. Decisions are typically made within 60 days, and if a loan is not awarded, you have the option to appeal or mediate this decision through the agency. This is a great example of a government program that supports those who want to have an independent lifestyle and provide a service that benefits everyone.
You can attain a loan for the funds needed to purchase or make a down payment on land and buildings; to expand your existing business; to repair farms damaged by flooding or natural disaster; or to fund daily operations and equipment. If you have applied for business credit elsewhere and been denied, this program may be an alternate option for you.
One loan option, the Guaranteed Loan Program, is made by a commercial bank and guaranteed by the service; this means that the bank is protected if the consumer defaults on the payments. The Direct Loan program, by contrast, is funded by the service, while the Land Contract Guarantee helps match established farmers who want to sell all or part of their land to new or otherwise disadvantaged farmers.
In addition to those options, you can also apply for a conservation loan. This is dedicated funding to help you establish a conservation plan on your existing farm or ranch. The plan must be reviewed and approved by the USDA prior to the loan being awarded.
For women, minorities, and other groups underrepresented in the field of agriculture, the USDA farm loan is an excellent choice. The agency sets aside dedicated funds each year to provide loans for these groups, in order to promote farming as a career for those who have not traditionally sought this path.
Eligibility varies based on the type of loan you apply for, but in general, you must be a US citizen who has not previously defaulted on a loan of this type. Your loan officer will guide you through additional requirements as you begin the application process.
Another critical step for applicants is the business plan. This document will inform how your business operates through the period of the loan and beyond. You can find sample plans and other resources on the agency's website, which will be particularly helpful if this is your first time creating a business plan.
If it sounds like the USDA farm loans program is a good option for you, you should visit the agency website. On their page, you'll find detailed information about all of your options, as well as the ability to apply online and submit documents when you've decided what type of loan you'd like to pursue. After applying, you'll be assigned a loan officer who will meet with you to discuss your request. Decisions are typically made within 60 days, and if a loan is not awarded, you have the option to appeal or mediate this decision through the agency. This is a great example of a government program that supports those who want to have an independent lifestyle and provide a service that benefits everyone.