USDA Announces Availability of Additional Farm Loan Funding

September 9, 2016

The U.S. Department of Agriculture's Farm Service Agency Administrator Val Dolcini this week announced that additional funding will be made available to assist more than 1,900 approved applicants who are awaiting farm operating loans. The funds, which were reprogrammed by FSA with the approval of Congress, will leverage up to $185 million in additional lending for direct and guaranteed farm-operation loans and will allow the agency to address up to 30 percent of its projected shortfall of funds until the next federal fiscal year resumes on Oct. 1.

FSA loan funds have been in higher demand than in past years. As a result, funding for FSA's farm-operating loans has been unable to meet the demand for the remainder of this fiscal year, which ends Sept. 30. In fiscal year 2016, FSA has guaranteed loans to more than 6,400 customers for farm ownership and operating purposes.

USDA also reminded lenders and potential borrowers of the loan guarantee programs available from the Small Business Administration that can be used for similar purposes as FSA guaranteed loans. Some lenders work with both FSA and SBA on loan guarantees and can switch between the programs. This ability to switch between programs means the SBA programs can provide a financing alternative for agricultural producers when their lender is unable to close an FSA guaranteed loan, such as when funds have expended for the fiscal year.

More information about SBA loan programs can be found at www.sba.gov/loans. To learn more about USDA farm loans, visit www.fsa.usda.gov/farmloans or contact a local USDA office.