Overview

The U.S. Department of Agriculture’s Farm Service Agency (FSA) 

provides emergency loans to help producers recover from 

production and physical losses due to drought, flooding, other 

natural disasters, or quarantine.

Loan Uses

Emergency loan funds may be used to:

• Restore or replace essential property;

• Pay all or part of production costs associated with the 

disaster year;

• Pay essential family living expenses;

• Reorganize the farming operation; and

• Refinance certain debts.

Who is Eligible? 

Emergency loans may be made to farmers and ranchers who:

• Own or operate land located in a county declared by the 

President or designated by the Secretary of Agriculture as a 

primary disaster area or quarantine area. All counties contiguous 

to the declared, designated, or quarantined primary counties

also are eligible for emergency loans. A disaster designation by 

the FSA Administrator authorizes emergency loan assistance for 

physical losses only in the designated and contiguous counties;

• Are established family farm operators and have sufficient 

farming or ranching experience;

• Are citizens or permanent residents of the United States;

• Have suffered at least a 30 percent loss in crop production or 

a physical loss to livestock, livestock products, real estate, or 

chattel property;

• Have an acceptable credit history;

• Are unable to receive credit from commercial sources;

• Can provide collateral to secure the loan; and

• Have repayment ability.

Loan Requirements

FSA loan requirements are different from 

those of other lenders. Some of the more 

significant differences are the following:

• Borrowers must keep acceptable farm 

records;

• Borrowers must operate in accordance 

with a farm plan they develop and 

agree to with local FSA staff; and

• Borrowers may be required to 

participate in a financial management 

training program and obtain crop 

insurance.

Collateral Is Required

All emergency loans must be fully 

collateralized. The specific type of collateral 

may vary depending on the loan purpose, 

repayment ability, and the individual 

circumstances of the applicant. If applicants 

cannot provide adequate collateral, their 

repayment ability may be considered as 

collateral to secure the loan. A first lien is 

required on property or products acquired, 

produced, or refinanced with loan funds.

United States

Department of

Agriculture

Emergency Loan Program

FARM SERVICE AGENCY

DISASTER ASSISTANCE

FACT SHEET - MAY 2020
EMERGENCY LOAN PROGRAM 2

Loan Limit

Producers can borrow up to 100 percent of actual 

production or physical losses to a maximum amount of 

$500,000.

Loan Terms

Loans for crop, livestock, and non-real estate losses are 

normally repaid within one to seven years, depending 

on the loan purpose, repayment ability, and collateral 

available as loan security. In special circumstances, 

terms of up to 20 years may be authorized. Loans 

for physical losses to real estate are normally repaid 

within 30 years. In certain circumstances, repayment 

may be made over a maximum of 40 years.

Current Interest Rate

To find the current emergency loan interest rate, visit 

fsa.usda.gov/farmloans.

Application Deadline

Applications for emergency loans must be received 

within eight months of the county’s disaster or 

quarantine designation date.

For More Information

This fact sheet is for informational purposes only; other 

eligibility requirements or restrictions may apply. To 

find more information about FSA disaster assistance 

programs, visit farmers.gov or contact your local FSA 

office. To find your local FSA office, visit farmers.gov/

service-center-locator.

FACT SHEET - MAY 2020