USDA Microloan Program Offers Farmers Up to $50,000
Jeff Storch | 04.29.19
Since 2013, the U.S. Department of Agriculture (USDA) has offered farm “microloans” up to $50,000. Microloans now are available to help with farm land and building purchases and soil and water conservation improvements. According to the USDA, the focus of microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.
General eligibility requirements include:
- have the legal capacity to incur the loan obligation
- be able to show an acceptable credit history
- be a citizen, non-citizen national or legal resident alien of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and certain former Pacific Trust Territories
- have no previous debt forgiveness by the Agency, including a guarantee loan loss payment
- be unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
- not be delinquent on any Federal debt, other than IRS tax debt, at the time of loan closing
- not be ineligible due to disqualification resulting from Federal Crop Insurance violation
- not have Federal or State convictions for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances For more information, see the USDA’s Microloan Programs website https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/microloans/index?utm_medium=email&utm_source=govdelivery
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.