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HIGHER LOAN LIMIT AVAILABLE FOR USDA FARM LOANS

admin by admin
October 7, 2021
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Biden Student Loan Forgiveness Means 3 Things For Your Student Loans

(NAFB) – The USDA says a higher loan limit will be available for borrowers seeking a guaranteed farm loan beginning on October 1.

The limit goes from $1.776 million to $1.825 million.

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“Farm loans are critical for our customers’ annual operating and family living expenses, emergency needs, and cash flow,” says FSA Administrator Zach Ducheneaux. “Raising the guaranteed loan limit will allow FSA to better meet the financial needs of producers as natural disasters and the pandemic continue to impact their operations.”

FSA farm loans offer access to funding for a wide range of producer needs, from securing land to financing equipment purchases. Guaranteed loans are financed and serviced by commercial lenders. FSA provides up to a 95 percent guarantee against the possible financial loss of principal and interest. Guaranteed loans can be used for both farm ownership and operating purposes.

FSA saw a continuing strong demand for guaranteed loans during the fiscal year 2021. FSA issued more than $3.4 billion in guaranteed farm ownership and operating loans. This includes almost $1.2 billion for beginning farmers. The number of guaranteed borrowers has grown by 10 percent during the past decade, and FSA expects the increasing demand for farm loans to continue into the next fiscal year.

 

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