they may process loans under the 

reduced paperwork and supervision 

requirements afforded to the 

respective status lender program.

Standard Eligible 

Lenders

The basic level of participation in 

the FSA Guaranteed Farm Loan 

Program is Standard Eligible 

Lender (SEL). SELs must be 

State or Federally regulated, have 

agricultural lending experience and 

the capability to make and service 

requested loans. SELs are also 

expected to have a business office 

or representative located in the 

area where loans will be made to 

allow for adequate loan servicing. 

The lender or its officers also must 

not be debarred from participating 

in government programs or be 

delinquent on federal debt.

Certified Lender 

Program

The Certified Lender Program 

(CLP) permits lenders with a 

proven track record in making and 

servicing guaranteed agricultural 

loans to operate under a streamlined 

origination and servicing process. 

Information submitted to FSA for 

approval is reduced under the 

CLP program.

Overview

A guaranteed loan allows a USDAapproved commercial lender to 

issue and service a loan, while 

the Farm Service Agency (FSA) 

guarantees the loan against losses, 

typically up to a maximum of 90 

percent. In some circumstances, 

including loans to beginning 

farmers and socially disadvantaged 

farmers, a 95 percent guarantee 

is available. FSA reviews all 

loan guarantees for approval and 

provides oversight of lenders’ 

activities.

Lenders who are subject to credit 

examination and supervision by 

an acceptable State or Federal 

regulatory agency and have 

experience in agricultural lending 

are eligible to participate in all 

FSA Guaranteed Farm Loan 

Programs. Lenders not subject to 

traditional credit examination and 

supervision, or who have little or 

no experience with agricultural 

loans, may qualify as Micro 

Lenders (MLP) and make loans 

under the EZ Guarantee Program. 

Lenders who have a positive 

track record of participation in the 

program may participate in one of 

FSA’s status lender programs, the 

Certified Lender Program (CLP) 

and Preferred Lender Program 

(PLP). Once lenders are approved 

by FSA as a CLP or PLP lender, 

To be eligible for CLP status, 

the lender must meet the 

eligibility requirements of a SEL. 

Additionally, the lender must also 

have a loss rate that does not exceed 

seven percent on loans closed in 

the past seven years and have made 

a minimum of 10 FSA guaranteed 

loans in their history, five of which 

need to have been completed in 

the past two years. Lenders must 

have proven their ability to process 

and service guaranteed loans by 

submitting complete and correct 

applications as well as servicing 

all guaranteed loans in accordance 

with FSA regulations.

CLP status is granted by a Lender’s 

Agreement on a statewide basis by 

State Executive Directors and is 

active for five years from the date 

the Lender’s Agreement is signed.

Preferred Lender 

Program

Participation in the Preferred 

Lender Program (PLP) is the 

highest status that a lender can 

hold in the FSA Guaranteed Farm 

Loan Program. The PLP status 

was developed to recognize 

experienced lenders that have 

demonstrated significant expertise 

and understanding of agricultural 

lending and the FSA Guaranteed 

Farm Loan Program. 

FACT SHEET

August 2019

Guaranteed Lender 

Eligibility and Status

USDA is an equal opportunity provider, employer, and lender.
To meet the requirement of acceptable oversight, MLP 

lenders must be one of the following:

• Community Development Financial Institution (CDFI)

• Rural Rehabilitation Corporation (RRC)

• A traditional lender subject to credit examination 

and supervision that does not have experience with 

agricultural loans.

An MLP lender also must:

• Have experience in making and servicing 

business loans

• Have the staff and resources to properly and 

efficiently handle its loan making and loan servicing 

responsibilities

• Have a loss rate on business loans of $50,000 or 

less of no more than three percent over the past 

seven years

• Have made a minimum of 20 business loans 

of $50,000 or less

• Are not debarred or suspended from participation 

in Government contracts or programs and are not 

delinquent on a Government debt.

• MLP status may be approved on a statewide basis 

and the Lender’s Agreement is active for five years 

from the date of the approval. 

More Information

For more information, visit 

fsa.usda.gov/farmloans or farmers.gov. Find your 

local USDA Service Center at farmers.gov.

PLP lenders benefit from:

• streamlined submission requirements

• decreased turnaround time on FSA actions

• authorization to originate and service guaranteed 

loans as they would other loans in their portfolio.

To qualify for the PLP program, the lender must:

• Meet the CLP eligibility criteria,

• Have originated at least 20 guaranteed loans in the 

past five years; and

• Not have losses more than three percent on loans 

closed in the past seven years.

Unlike SEL and CLP lenders who originate and service 

guaranteed loans under FSA standards and guidance, 

PLP lenders use their own Credit Management System 

(CMS) for originating and servicing FLP guaranteed 

loans. Once a CMS is approved by FSA, it becomes the 

operational plan and a part of the Lender’s Agreement 

between the lender and FSA for originating and 

servicing guaranteed loans.

PLP status is granted by the Deputy Administrator for 

Farm Loan Programs in Washington, DC, and covers all 

states for which the lender chooses to participate in the 

program. PLP status is active for five years from the 

date of the approved Lender’s Agreement.

Micro Lender Program

The Micro Lender Program (MLP) allows 

nontraditional lenders and commercial lenders not 

eligible for other lender statuses to participate in the 

EZ Guarantee program. MLP status allows FSA to 

increase collaboration with nontraditional lenders 

and assist smaller farmers typically in underserved 

areas. Establishing a stronger working relationship 

with nontraditional lenders is beneficial as they share 

a common goal with FSA to assist producers in 

underserved areas, including credit deserts.

MLP lenders are limited to originating and servicing EZ 

Guarantee loans only. Additionally, MLP lenders must 

be subject to oversight as established by FSA.

GUARANTEED LENDER ELIGIBILITY AND STATUS - AUGUST 2019

USDA is an equal opportunity provider, employer, and lender. 2