Ag Business Lending (USDA)
We have a number of options for our customers in the Ag Business. We know how strong of a positive influence agriculture is on our community, and we look to support it in any way we can. Contact us today to learn how a USDA loan could fit into your Ag business strategy.
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| Account Features | USDA FSA Farm Ownership | USDA FSA FARM Operating | USDA Beginning Farmer | USDA Business and Industry |
|---|---|---|---|---|
| Loan Type | Term Note | Term Note | Term Note | Term Note |
| Best Used For | Purchase farmland, construct or repair buildings and other fixtures, develop farmland to promote soil and water conservation, or to refinance debt | Purchase livestock, equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Can also be used for minor building improvements, costs associated with land development, and to refinance debt | Purchase farmland | Business or Entity must be located in a rural area by USDA definition. Can be used to purchase or develop land, buildings, or facilities, equipment, machinery, leasehold improvements, supplies, inventory or business conversion, modernization, or change of ownership |
| Maturity | 40 years maximum | 15 years maximum, but typically 7 years | 30 years maximum on bank 1st mortgage lien, 20 years maximum on USDA Direct Loan 2nd mortgage lien | 30 years maximum on real estate, 15 years maximum on equipment, 7 years maximum for working capital |
| Maximum Loan Amount | $1,355,000 | $1,355,000 | Flexible to USDA Maximum | $10,000,000 |
| Interest Rate Options | Variable or Fixed | Variable or Fixed | Variable or Fixed | Variable or Fixed |
| Collateral Requirements | May not exceed 100% of appraised value of land | May not exceed 100% of appraised value of all available collateral | 95% of appraised value, borrower is required to supply 5% down (can be borrowed from another source). USDA finances the lesser of 45% of $225,000 through a FSA Direct loan as a 2nd mortgage, and the bank finances the rest of the purchase through a 1st mortgage | 80% of real estate, 100% of new equipment, 70% of accounts receivable, and 50% of inventory |
For more information contact:
Jay Nowak
Executive Vice President
NMLS 562290