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FSA makes thousands of loans each year to farmers who need a helping hand. Whether it’s a young husband and wife who are ready to buy their first farm, a veteran farmer facing temporary adversity, or a farmer who has suffered from extreme weather conditions, FSA provides financial assistance that helps ensure the well-being of American agriculture. Community 1st Credit Union is ready to help and serve Iowa farmers. Farm Operating Guaranteed Loan (OL) How to Qualify • Must be a citizen of the United States • Have legal capacity to incur the obligations of the loan • Be unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance loan needs • Be the operator of the family farm after the loan is closed • Not be delinquent on any Federal debt • Have satisfactory credit history • Demonstrate repayment ability • Provide sufficient security for the loan Use of Proceeds • Purchase livestock, poultry, equipment, feed, seed, farm chemicals, and supplies • Soil and water conservation • Refinance indebtedness within certain limitations Maximum Loan Amount • $1,094,000 (Amount adjusted annually for inflation) Rates and Terms • Loan guarantee up to 90% • Guarantee Fee ~ 1% of the loan • From 1 to 7 years • Rates not to exceed those charged lender’s average farm customers • Interest rate reduction of 4% available for those unable to repay at regular rates Collateral Each loan must be adequately secured. Collateral generally consists of a first lien on crops to be produced and on livestock and equipment purchased or refinanced with loan funds. A lien may be taken on certain other chattel and real estate property, and an assignment usually will be taken on income, such as that from a dairy enterprise. Farm Ownership Guaranteed Loan (FO) How to Qualify • Three years of farm operating experience • Must be a citizen of the United States • Have legal capacity to incur the obligations of the loan • Be unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance loan needs • Be the owner and operator of the family farm after the loan is closed • Not be delinquent on any Federal debt • Have satisfactory credit history • Demonstrate repayment ability • Provide sufficient security for the loan Use of Proceeds • Purchase land • Construct buildings or other improvements • Soil and water conservation Maximum Loan Amount • $1,094,000 (Amount adjusted annually for inflation) Rates and Terms • Loan guarantee up to 90% • Guarantee Fee ~ 1% of the loan • Up to 40 years • Rates not to exceed those charged lender’s average farm customers Collateral Real estate or a combination of real estate and chattel property Helpful Resource For ALL FSA Loans U.S. Department of Agriculture Farm Service Agency (for information about FSA and loan applications) • www.fsa.usda.gov • Phone: (202) 720-1632 Community 1st Credit Union will work with you to analyze your situation and provide assistance. To find out more on how you can qualify or apply for a FSA Loan, contact one of our Business/Agriculture Loan Officers today.
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Copyright © Community 1st Credit Union. All Rights Reserved. This credit union is federally insured by the National Credit Union Administration. |
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