If you are a beginning or established farmer who needs funding to cover the cost of land, farm equipment, or other expenses, USDA farm loans may be the answer for you. These loan programs exist to fund the purchase or expansion of a farm, repairing a farm that has been damaged, or purchasing necessary equipment.
These loans are designed for people who have had difficulty obtaining credit through a bank or other commercial entity. They are meant to be a temporary solution for borrowers while they build credit to the point where a traditional commercial loan is within reach. However, you must have established good credit or have hardship explanations if your credit is lacking.
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.
If you are a beginning farmer or rancher, started farming less than 10 years ago, or are a member of a group underrepresented in farming, there are funds specifically set aside each year that may help you. Underrepresented groups include women and most people who are not Caucasian.
To obtain a loan of this kind, you must be a US citizen with no previous defaults on a similar loan. A detailed business plan is also a necessity. For resources to help you prepare this document, visit the service's website. You'll find all the tools you need for a comprehensive plan for a sustainable agriculture business.
To get started with the business plan, articulate the mission and vision for your outfit and your plan for it to be sustainably funded in the future. You'll also need a full accounting of your finances. This is a great opportunity to outline your plan for success for the next several years of business operation.
Visit the USDA farm loans website to start the process of applying for a loan. Once you submit the necessary documents and forms, you'll be scheduled for a meeting with a loan officer. It typically takes 60 days for a decision to be made; if the decision is unfavorable, you are allowed to appeal through an established process. If you do receive a loan, you are responsible for sticking to your business plan, keeping accurate financial records, and paying the loan on time.
These loans are designed for people who have had difficulty obtaining credit through a bank or other commercial entity. They are meant to be a temporary solution for borrowers while they build credit to the point where a traditional commercial loan is within reach. However, you must have established good credit or have hardship explanations if your credit is lacking.
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.
If you are a beginning farmer or rancher, started farming less than 10 years ago, or are a member of a group underrepresented in farming, there are funds specifically set aside each year that may help you. Underrepresented groups include women and most people who are not Caucasian.
To obtain a loan of this kind, you must be a US citizen with no previous defaults on a similar loan. A detailed business plan is also a necessity. For resources to help you prepare this document, visit the service's website. You'll find all the tools you need for a comprehensive plan for a sustainable agriculture business.
To get started with the business plan, articulate the mission and vision for your outfit and your plan for it to be sustainably funded in the future. You'll also need a full accounting of your finances. This is a great opportunity to outline your plan for success for the next several years of business operation.
Visit the USDA farm loans website to start the process of applying for a loan. Once you submit the necessary documents and forms, you'll be scheduled for a meeting with a loan officer. It typically takes 60 days for a decision to be made; if the decision is unfavorable, you are allowed to appeal through an established process. If you do receive a loan, you are responsible for sticking to your business plan, keeping accurate financial records, and paying the loan on time.
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If you wish to learn more about USDA farm loans check this link (www.farmloancenter.com/) to the Farm Loan Center. We also offer commercial real estate loans processed by our experienced Agricultural Brokerage Department and you can find us online at http://www.farmloancenter.com now.
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