FSA: Microloan Cap Grows to $50,000
Wisconsin Ag Connection - 02/18/2015
The Farm Service Agency is reminding farmers that the FSA borrowing limit for microloans has increased to $50,000. Microloans offer borrowers simplified lending with less paperwork.
The microloan program allows beginning, small and mid-sized farmers access to FSA loans using a simplified application process with up to seven years to repay. Microloans are part of USDA's continued commitment to small and midsized farming operations.
To complement the microloan program additional changes to FSA eligibility requirements will enhance beginning farmers access to land, a key barrier to entry level producers. FSA policies related to farm experience have changed so that other types of skills may be considered to meet the direct farming experience
required for farm ownership loan eligibility.
Operation or management of non-farm businesses, leadership positions while serving in the military, or advanced education in an agricultural field will now count towards the experience applicants need to show when applying for farm ownership loans. Important Note: Microloans cannot be used to purchase real
Since 2010, FSA has made a record amount of farm loans with more than 165,000 loans totaling nearly $23 billion. More than half of the USDA's farm loans now go to beginning farmers.