FSA Guaranteed Farm Loans: Who Qualifies and What You Get
Learn how government guarantees can help farmers secure approval for loans through commercial lenders.
This program helps farmers secure financing by having the government act as a backstop for loans provided by private banks.
Who it's for
This scheme is designed for farmers who are working with commercial lenders to fund their operations.
What you get
The government guarantees a portion of your loan. This guarantee reduces the risk for the bank, which can make it easier for you to get approved for the financing you need.
What it costs you
While the government provides the guarantee, you will be responsible for paying bank fees and a government guarantee fee.
The catch to know
Even with a government guarantee, the bank still has the final say on whether to approve your loan; the guarantee simply lowers the risk for the lender.
How to apply
- Consult with your local commercial lender to see if they participate in this program.
- Discuss your specific farming needs and the terms of the loan with the bank.
- Complete the required application and documentation required by your lender.