Farm Loans

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET

October 2016

EZ Guarantee Loans

OVERVIEW

Farmers and ranchers can apply for loans directly 

from the U.S. Department of Agriculture (USDA) 

Farm Service Agency (FSA), but a guaranteed 

loan allows a USDA-approved commercial lender 

to issue and service a loan, while FSA guarantees 

the loan against losses up to a maximum of 

90 percent in most cases. In some circumstances, a 

95 percent guarantee is available. FSA approves all 

loan guarantees and provides oversight of lenders’ 

activities.

FSA developed the EZ Guarantee Loan to better 

serve the unique financial operating needs of new, 

niche, family, underserved or small farm operations 

by offering faster and simplified application and 

submission requirements. These farms often face 

limited financing options. USDA-approved lenders 

can apply to FSA on behalf of their applicants to 

obtain a guarantee of up to 95 percent for the EZ 

Guarantee Loan.

ELIGIBLE USES

EZ Guarantee Loans can be used to:

• Pay for the purchase of a farm;

• Enlarge an existing farm;

• Construct new farm buildings and/or improve 

structures;

• Pay closing costs;

• Promote soil and water conservation and 

protection;

• Refinance debt from another creditor;

• Purchase equipment;

• Purchase livestock; and

• Pay for other operating needs.

SIMPLIFIED APPLICATION

The application process requires less paperwork 

and analysis that corresponds with a smaller 

maximum loan amount. Lenders must only submit

one application form per loan request that contains 

all of the necessary information for the application. 

Lenders applying for an EZ Guarantee Loan 

will not be required to submit other supporting 

documents normally required for regular FSA 

guaranteed loan applications, such as balance 

sheets, cash flow projections, debt verifications, 

etc.

SECURITY REQUIREMENTS

Participating lenders will be responsible for 

choosing appropriate security for the loan. Security 

may vary depending on the purpose of the loan. 

Possible security property could include, but is 

not limited to, crops, livestock, equipment, other 

chattels and/or real estate.

RATES AND TERMS

Eligible applicants may obtain an EZ Guarantee 

Loan for up to $100,000 from traditional lenders 

or $50,000 from micro lenders for farm operating 

purposes and/or farm ownership purposes. The 

repayment term can be up to seven years for 

operating loans and 40 years for farm ownership 

loans. The interest rates are determined by the 

lender, but must be below maximum levels 

established by FSA.

OBTAINING FORMS AND SUBMITTING 

APPLICATION

EZ Guarantee Loan application forms can be 

obtained from the local FSA office or can be 

downloaded and printed from the USDA website 

at www.fsa.usda.gov/farmloans. Lenders who 

are having problems gathering information or 

completing forms can contact their local FSA office 

for help. After completing the required paperwork, 

the lender must submit the farm loan application to 

their local FSA office. Visit http://offices.usda.gov

to locate a local office.
FACT SHEET

EZ Guarantee Loans October 2016

AFTER SUBMITTING APPLICATION

After an application is submitted, FSA reviews the 

application and determines if the loan applicant is 

eligible for the loan. The lender will receive written 

notification of each step in the process, such as 

when the application is received, when more 

information is needed and when a final decision is 

made. If the application is approved, FSA makes 

the loan and funds are obligated as needed. The 

lender is then notified that the loan is approved 

and funds are available. Once the lender closes the 

loan, FSA issues the guarantee to the lender. If the 

application is denied, the loan applicant and the 

lender are notified in writing of the specific reasons 

for the denial and provided reconsideration and 

appeal rights.

ELIGIBILITY

To qualify for assistance, the applicant must 

not be larger than a family-sized farmer, have a 

satisfactory history of meeting credit obligations, 

be unable to obtain credit without the guarantee at 

reasonable rates and terms and meet all other loan 

eligibility requirements.

FOR MORE INFORMATION

This fact sheet is provided for informational 

purposes only; other restrictions and eligible 

requirements may apply. Additional information 

on the FSA EZ Guarantee Loan program may be 

found online at www.fsa.usda.gov/farmloans and 

at local FSA offices. To locate a local FSA office, 

visit http://offices.usda.gov.

___________________________________________

In accordance with Federal civil rights law and U.S. Department of 

Agriculture (USDA) civil rights regulations and policies, the USDA, 

its Agencies, offices, and employees, and institutions participating in 

or administering USDA programs are prohibited from discriminating 

based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital 

status, family/parental status, income derived from a public assistance 

program, political beliefs, or reprisal or retaliation for prior civil 

rights activity, in any program or activity conducted or funded by 

USDA (not all bases apply to all programs). Remedies and complaint 

filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, 

American Sign Language, etc.) should contact the responsible Agency 

or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or 

contact USDA through the Federal Relay Service at (800) 877-8339. 

Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA 

office or write a letter addressed to USDA and provide in the letter 

all of the information requested in the form. To request a copy of the 

complaint form, call (866) 632-9992. Submit your completed form or 

letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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