Monday, the U.S. Department of Agriculture announced a higher loan limit will be available for borrowers seeking a guaranteed farm loan. As of October 1 2021, the loan limit is raised from $ 1.766 million to $1. 825 million. Department Secretary Tom Vilsack made the announcement at a news conference Monday with agriculture reporters. He says it’s aimed at mid-sized processors.
He says the potential is for hundreds of million of dollars of loan guarantees to help strengthen the food supply system.
Vilsack says the USDA will hold a training program for lenders wanting to be involved in this guaranteed loan program.
The Guaranteed loans are financed and serviced by commercial lenders. The USDA Farm Service Agency provides up to a 95 percent guarantee against possible financial loss of principal and interest. Guaranteed loans can be used for both farm ownership and operating purposes.
