Changes Increase Eligibility and Financing Options for Hard Working Families
WASHINGTON – Agriculture Deputy Secretary Krysta Harden today announced that the U.S. Department of Agriculture (USDA) will improve farm loans by expanding eligibility and increasing lending limits to help more beginning and family farmers. As part of this effort, USDA is raising the borrowing limit for the microloan program from $35,000 to $50,000; simplify the lending processes; updating required “farming experience” to include other valuable experiences; and expanding eligible business entities to reflect changes in the way family farms are owned and operated. The changes become effective Nov. 7.
“USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit,” said Harden. “These new flexibilities, created by the 2014 Farm Bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation.”
The microloan changes announced today will allow beginning, small and mid-sized farmers to access an additional $15,000 in 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.