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, and debt 

verifications.

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.

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 their loan 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.

FACT SHEET

August 2019

EZ Guarantee Loans

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Obtaining Forms and Submitting 

Applications

EZ Guarantee Loan application forms can be obtained 

from the local FSA office or can be downloaded and 

printed from the USDA website at 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 offices.usda.gov to locate a local office.

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.

EZ GUARANTEE LOANS - AUGUST 2019

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

Who is Eligible 

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.

More Information

For more information, visit fsa.usda.gov/farmloans or 

farmers.gov. Find your local USDA Service Center at 

farmers.gov.

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