Friday, July 31, 2009

FSA offers guaranteed loans

There’s no doubt the turbulent economy has impacted all business sectors, and the agriculture industry is no exception. Like most lenders these days, those who work with Texas farmers and ranchers also are limited in their ability to offer financing. Fortunately, there’s another option for the agriculture community.

USDA has a lending assistance program that gives both lenders and farmers a chance to acquire security in borrowing money. The Farm Service Agency (FSA), a branch of USDA, is offering farm loan guarantees that are beneficial for farmers and ranchers who do not qualify for loans in their communities due to minimal cash flow, limited experience or minimal equity.

It’s a win for both the lenders and producers. Lending institutions will have security in issuing these loans to farmers and ranchers, and producers will get the funds they need to continue farming and ranching operations that are critical to the food and fiber supply of all Texans.

Starting this month, FSA is holding workshops for lenders to learn more about the Guaranteed Loan Program. These sessions will offer pertinent information for lenders to implement these loans in their institutions, so make sure to tell your lender about them. There are four more information sessions this year:

August 23 – 24, Mesquite, TX
November 17 – 18, Lubbock, TX
October 6 -7, College Station, TX
December 8 - 9, College Station, TX

For more information, contact your local Farm Service Agency county office here.

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