Priority given to applicants in towns with less than 25,000 people. Term and interest rate negotiated by borrower and intermediary. Must be unable to get funds elsewhere. Firm must be located in town with pop. Direct loans and loan guarantees made to buy, improve, or enlarge farms.
Loan is secured by real estate involved.
Must be unable to obtain funds elsewhere. Borrowers receiving direct loans are expected to refinance using commercial sources when feasible. Farm Operating Loans Operators of family-sized farms. Operating loan funds may be used to pay for items such as livestock, equipment, seed, crop insurance, hired labor, etc. Loans are for 1 to 7 years or when financed product is sold.