USDA farm loans

 

 Call 631-451-7400  FSA

USDA Farm Loans
Call  631-451-7400
The finance Experts
Serving clients since 1987
Financial Services of America     -  All 50 states

What is a USDA Loan?

A USDA Guaranteed Loan is Government insured 100% purchase loan. These Loans are serviced by direct lenders                         ...that meet federal guidelines and only offered in rural areas.

  
 

Farm loans

Loans: Working Capital

PNC Working Capital Growth Fund
Up to $100 million in low-interest rate financing for small businesses in Pennsylvania.  Working capital at attractive interest rates—that’s the one thing small to mid-sized businesses need to grow.  With that idea in mind, PNC Business Banking, in cooperation with the Commonwealth of PA, has established a special pool of funds – PNC's Pennsylvania Working Capital Growth Funds -- designated to help businesses continue to grow right here in Pennsylvania.
 
 
Small Business First
Provides low-interest loans for land and building acquisition and construction, machinery and equipment purchases, and working capital up to $200,000 or 40% of the total eligible project cost, whichever is less.
 
Loans: Refinancing
First Industries loan guarantees provide private lenders with a risk management tool, and agricultural borrowers access to private credit sources at potentially lower-risk rates and terms.  Once the lender and the loan are approved by CFA, lenders receive a certificate from CFA promising to repay the loan at 50 cents on the dollar if it turns out that the borrower cannot repay.  The total pay-off cannot exceed $2.5 million.
 
 
"Direct" farm loans are made by FSA with Government funds. The FSA also services these loans and provides their Direct loan customers with supervision and credit counseling so they have a better chance for success. Farm Ownership, Operating, Emergency and Youth loans are the main types of loans available under the Direct program. Direct loan funds are also set aside each year for loans to minority applicants and beginning farmers.
 
Frequently Asked Questions
Q. Do I qualify for the loan/grant?
a. Each program has its own set of requirements that should be reviewed as thoroughly as possible.  These requirements may change from time to time so it is always best to check before making any submissions.  For more detailed information, it is always best to contact the organization providing the money or call us at PAgrows.
 
Q. How long does it take to receive the money?
a. Times vary from program to program.  Typically, paperwork can take three to four months.  The better prepared you are and the more documentation you have available, the easier and quicker the process will be.
 
Q. What documents should I have available when applying for a loan?
a. Previous three years of tax returns, financial statements, cash flow statements, profit/loss statements.  Also, any history or statement of leans against your property and lists of your assets.
 
Q. Why am I contacting PAgrows?
a. While PAgrows does not directly administer any of the listed programs, we have developed a relationship with the groups that do and have up to date information on each of the programs.  PAgrows is a great first stop for finding what programs will work best for your needs and we offer the follow through to make sure you stay on track with the program you are using.
 
Q. How can lenders and providers benefit from PAgrows?
a. Agricultural lending is often an underserved market and many lending institutions and service providers do not have the staff or background needed to understand the ag lending process.  PAgrows will do its best to provide technical assistance when requested and help the understanding of the ins and outs of farm economics.
 
Q. Who services my loan?
a. Area Loan Organizations, Industrial Development Authorities, Industrial Development Corporations, state and federal agencies as well as private lenders each share a part in servicing your loan depending on which loan program you are using.  Often times, more than one will have a part in servicing your loan and will require separate payments.  More details can be found in the program specifics.
 
Q. How do I know if I am in an Ag Security Area?
a. Ag Security Areas are administered on the township level.  Contacting your township supervisor is often a good first stop.  You can also contact the Department of Agriculture’s Bureau of Farmland Preservation if you have difficulty retrieving the information from your township.
 
Q. My credit is not that great, will that affect my ability to qualify?
a. Depending on the program, credit history will play a significant role in your eligibility.  There are programs available which are meant to help those who do not have the best credit and they are listed on this site.
 
Q. Why should I have a business plan?
a. Business plans serve as your compass to guide and direct your enterprise.  It makes concrete your threats, challenges, opportunities and assets to meet your business goals.  It also serves as an information support for your lenders and marketing decisions.
 
Q. Why do these programs require multiple copies of the same documents?
a. In most cases, more than one person is required to review your application during the process.  Multiple copies speeds up the dissemination of information to those individuals and helps to provide quicker return times on your projects.
 
Q.  Can I refinance my existing Debt?
a. Almost none of the state and federal loan programs allow refinancing.  However, both the First Industries Fund and USDA have loan guarantee programs which could be applied by a private lender who is doing your refinance.