Farm Loans

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET

October 2016

Guaranteed Micro Lenders

OVERVIEW

The Farm Service Agency (FSA) developed the EZ 

Guarantee Loan to make obtaining loans from the 

U.S. Department of Agriculture (USDA)-approved 

commercial lenders simpler and faster.

Farmers and ranchers can apply for loans directly 

from the USDA 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 guaranteed Micro Lender 

status to allow participation in the EZ Guarantee 

Loan program by “non-traditional lenders,” such 

as Community Development Financial Institutions 

(CDFI) and Rural Rehabilitation Corporations 

(RRC). These lenders have experience with serving 

the unique financial operating needs of new, niche, 

underserved and small family farm operations. 

Smaller farms, including non-traditional farm 

operations, often face limited financing options. 

This new category of lenders will help these 

producers with access to credit while also giving 

the lenders an opportunity to gain experience with 

agricultural loans, access to new markets or expand 

their customer base.

ELIGIBLE USES OF EZ GUARANTEE 

LOANS

Guaranteed Micro Lenders apply for EZ Guarantee 

Loans on behalf of their applicants 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.

MICRO LENDER ELIGIBILITY

To qualify, the lender must:

• Be subjected to appropriate oversight;

• Have originated at least 20 loans; and

• Not have losses in excess of 3 percent in the 

past seven years.

OBTAINING FORMS AND SUBMITTING 

APPLICATION

Interested lenders must apply to the USDA 

FSA for Micro Lender status before submitting 

EZ Guarantee Loan applications. FSA Micro 

Lender 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. After completing 

the required paperwork, the lender must submit the 

Micro Lender application to their local FSA office. 

Visit http://offices.usda.gov to locate a local 

office.

AFTER SUBMITTING APPLICATION

After a Micro Lender application is submitted, FSA 

reviews the application and determines if the lender 

is eligible for Micro Lender status. The lender will 

receive notification throughout the process and 

will receive final notification as to whether their 

application is approved or not. If the application is 

approved, FSA notifies the lender and the lender 

may then begin submitting EZ Guarantee Loan 

applications. If the application is denied, the lender 

is notified in writing of the specific reasons for the 

denial.
FACT SHEET

Guaranteed Micro Lenders October 2016

FOR MORE INFORMATION

This fact sheet is provided for informational 

purposes only; other restrictions and eligibility 

requirement may apply. For more information 

about this and other FSA Farm Loan Programs, 

visit online at www.fsa.usda.gov/farmloans or 

USDA service center. 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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