FSA Loan Availability Guaranteed Loan Availability Changes to FSA regulations have removed Guaranteed Operating Loan term limits. Previous and current guaranteed loan borrowers who were not eligible for further guaranteed loans due to the previous 15 year eligibility term limit may now be eligible for further guaranteed loans through their commercial lender. Direct Loan Changes Changes were made to the interest rate charged on loans where FSA provides 50 percent or less on jointly financed purchases of real estate also called Direct Farm Ownership Participation Loans. The interest rate will be the greater of 2.5 percent or the current interest rate for Direct Farm Ownership loans minus 2 percent, as a fixed rate for the duration of the loan. At present, the June direct Farm Ownership rate is 4.00 percent. Because the 2.5 percent floor is greater than subtacting 2 percent from the current direct farm ownership loan rate, the rate for Direct Farm Ownership Participation Loans in June is 2.50 percent. Beginning Farmer Loans FSA assists beginning famers to finance agricultural enterprises. Under these designated farm loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans. FSA defines a beginning farmer as a person who: Has operated a farm for not more than 10 years. Will materially and substantially participate in the operation of the farm. Agrees to participate in a loan assessment, borrower training and financial management program sponsored by FSA. Does not own a farm in excess of 30 percent of the county's average size farm. Additional program information, loan applications, and other materials are available at the Ashe/Alleghany and Wilkes County FSA offices. You may also visit www.fsa.usda.gov. Questions? Please contact Julia Houck, County Executive Director, at 336-246-8875 or 336-838-3622, julia.houck@nc.usda.gov or for Farm Loans, please contact Melissa Hodges, Supervisory Farm Loan Manager, at 336-838-3622, melissa.hodges@nc.usda.gov. |
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