About
The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.
Direct Farm Ownership Microloans:
Make a down payment on a farm
Build, Repair, or Improve farm buildings, service buildings, farm dwelling
Soil and Water Conservation Projects
May be used as a Downpayment Farm Ownership Loan
May be used in Joint Financing
Direct Farm Operating Microloans:
Essential tools
Fencing and trellising
Hoop houses
Bees and bee equipment
Milking and pasteurization equipment
Maple sugar shack and processing equipment
Livestock, seed, fertilizer, utilities, land rents, family living expenses, and other materials essential to the operation
Irrigation
GAP (Good Agricultural Practices), GHP (Good Handling Practices), and Organic certification costs
Marketing and distribution costs, including those associated with selling through Farmers' Markets and Community Supported Agriculture operations
Pay for qualifying OSHA compliance standards (Federal or State)
Microloan versus FSA's "regular" loan:
Direct Farm Ownership Microloans:
No appraisal needed
Verification of non-farm income unnecessary unless required for repayment
Successful repayment of an FSA Youth loan may be used towards the required 3 years of management experience
Direct Farm Operating Microloans:
The Microloan program allows for situations where production yield history or reporting is impractical, not relevant to the proposal submitted, or is not available.
Modified farm managerial experience requirements accommodate smaller farm operations, beginning farmers, and those with no farm management experience. Small business experience plus any farm experience, along with a self-guided apprenticeship, is a way to meet the farm management requirement.
Rural Youth loan recipients with a successful repayment history, or youth who have participated in an agriculture-related organization, can meet the modified managerial ability requirements with those experiences.
Eligibility
As with the regular Operating loan program, traditional and non-traditional family farms and ranches may be eligible for Microloan financing.
General eligibility requirements include:
Must not have Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances
Have the legal capacity to incur the loan obligation
Be able to show an acceptable credit history
Is a citizen, non-citizen national or legal resident alien of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and certain former Pacific Trust Territories
Have no previous debt forgiveness by the Agency, including a guarantee loan loss payment
Be unable to obtain sufficient credit elsewhere, with or without an FSA loan guarantee
Not be delinquent on any Federal debt, other than IRS tax debt, at the time of loan closing
Not be ineligible due to disqualification resulting from Federal Crop Insurance violation
Terms
For the Direct Ownership Microloan, the maximum term is 25 years.
For the Direct Operating Microloan, the repayment period will vary depending upon the purpose of the loan. General operating and family living expenses are due within 12 months or when the agricultural commodities sell. For larger purchases such as equipment or livestock, the term will not exceed 7 years.
Resources
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- Livestock
- Seafood
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- Tobacco
- Wool
- Eggs
- Poultry
- Goat Milk
- Cow Milk
- Barley
- Corn
- Sorghum
- Soybeans
- Sunflowers
- Cotton
- Wheat
- Cattle
- Pigs
- Sheep
- Cactus
- Christmas Trees
- Floriculture
- Nursery Crops
- Specialty Livestock
- Alpacas
- Bison
- Buffalo
- Beefalo
- Deer
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- Emus
- Goats
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- Llamas
- Mink
- Mohair
- Ostrich
- Pheasants
- Quail
- Rabbits
- Reindeer
- Turkey
- Water Buffalo
- Yak
- Fruits
- Honey
- Horticulture
- Maple Sap
- Tree Nuts
- Vegetables
- Cut Flowers
- Cut Greenery
- Abiu
- Barbados Cherry
- Achachairu
- Antidesma
- Apples
- Apricots
- Chokeberry
- Custard Apple
- Bananas
- Blueberries
- Breadfruit
- Cacao
- Caimito
- Calabaza Melon
- Canary Melon
- Canary Seed
- Caneberries
- Canistel
- Cantaloupes
- Star Fruit
- Casaba Melon
- Sugar Apple
- Cherries
- Chinese Bitter Melon
- Citron
- Citron Melon
- Coconuts
- Cranberries
- Crenshaw Melon
- Dates
- Winter Melon
- Durian
- Elderberries
- Figs
- Genip
- Gooseberries
- Grapefruit
- Grapes
- Ground Cherry
- Soursop
- Guava
- Guavaberry
- Honeyberries
- Honeydew
- Huckleberries
- Israel Melons
- Jack Fruit
- Jujube
- Juneberries
- Kiwiberry
- Kiwifruit
- Korean Golden Melon
- Kumquats
- Langsat
- Lemons
- Limequats
- Limes
- Longan
- Loquats
- Lychee
- Mangos
- Mangosteen
- Mayhaw Berries
- Mesple
- Mulberries
- Nectarines
- Oranges
- Papaya
- Passion Fruits
- Pawpaw
- Peaches
- Pears
- Pineapple
- Dragon Fruit
- Plantain
- Plumcots
- Plums
- Pomegranates
- Prunes
- Pummelo
- Raisins
- Rambutan
- Sapodilla
- Sapote
- Schizandra Berries
- Sprite Melon
- Star Gooseberry
- Strawberries
- Tangelos
- Tangerines
- Tangors
- Wampee
- Watermelon
- Wax Jamboo Fruit
- Goji
- Anise
- Basil
- Cassava
- Fresh Parsley
- Chia
- Radicchio
- Cilantro
- Cinnamon
- Curry Leaves
- Galanga
- Ginger
- Ginseng
- Guayule
- Herbs
- Hops
- Lotus Root
- Marjoram
- Meadowfoam
- Mint
- Moringa
- Niger Seed
- Oregano
- Parsley
- Pennycress
- Peppermint
- Pohole
- Psyllium
- Rosemary
- Sage
- Savory
- Forbs
- Sorrel
- Spearmint
- Tangos
- Tea
- Thyme
- Turmeric
- Vanilla
- Wasabi
- Water Cress
- Yu Cha
- Almonds
- Avocados
- Carob
- Cashew
- Chestnuts
- Coffee
- Hazelnuts
- Jojoba
- Macadamia Nuts
- Noni
- Olives
- Pecans
- Persimmons
- Pine Nuts
- Pistachios
- Quinces
- Walnuts
- Alfalfa Sprouts
- Aloe Vera
- Artichokes
- Arugula
- Asparagus
- Bamboo Shoots
- Batatas
- Bean Sprouts
- Beans
- Beets
- Bok Choy
- Broccoflower
- Broccoli
- Broccolini
- Broccolo-Cavalo
- Brussel Sprouts
- Cabbage
- Calaloo
- Carrots
- Cauliflower
- Celeriac
- Celery
- Chickpeas
- Chives
- Collard Greens
- Coriander
- Sweet
- Cucumbers
- Daikon
- Dandelion Greens
- Taro
- Dill
- Eggplant
- Endive
- Escarole
- Frisee
- Gailon
- Garlic
- Gourds
- Greens
- Horseradish
- Sunchoke
- Kale
- Kohlrabi
- Leeks
- Lentils
- Lettuce
- Melongene
- Mesculin Mix
- Microgreens
- Mushrooms
- Okra
- Onions
- Parsnip
- Peas
- Heart Of Palm
- Peppers
- Potatoes
- Sweet Potatoes
- Pumpkins
- Radicchio
- Radishes
- Rhubarb
- Rutabaga
- Oyster Plant
- Scallions
- Vegetable Seeds
- Shallots
- Spinach
- Squash
- Swiss Chard
- Tannier
- Tomatillos
- Tomatoes
- Truffles
- Turnip Top
- Turnips
- Yam
- Malanga
- Alfalfa
- Amaranth Grain
- Buckwheat
- Canola
- ELS Cotton
- Crambe
- Einkorn
- Emmer
- Flax
- Guar
- Hemp
- Indigo
- Industrial Rice
- Kenaf
- Khorasan
- Millet
- Mustard
- Oats
- Peanuts
- Quinoa
- Rapeseed
- Rice
- Sweet Rice
- Wild Rice
- Rye
- Safflower
- Sesame
- Speltz
- Sugar Beets
- Sugar
- Teff
- Malting Barley
- Upland Cotton
- Hard Red Spring Wheat
- Durum Wheat
Direct Farm Operating Loan
Farm Service Agency
- Loan
- General
- Equipment
- Animal Purchase
- Diversification
- Marketing
- Processing
- Feed
- Seed
- Fertilizer
- Cash Rent
- Housing & Families
- Construction
- Facilities
- Repairs
- Pest Management
- No-Till
- Storage
- Legal & Finance
- Water Management
- Waterway Protection
- Water Quality
- Conservation
- Training
- Immigrants
- CSA
- Refinancing
- National
- Any
Down Payment Loan Program
Farm Service Agency
- Loan
- Socially Disadvantaged
- Women
- Beginning Farmers
- Land & Ownership
- National
- Any
Details
Tags
Organization
Farm Service Agency (FSA)
Financial Instrument
Loan
Maximum Award Amount
$50,000
Image Credit
Updated January 28, 2021
This information was gathered from public sources. Ambrook is not responsible for or able to affect the results of any financial programs listed, nor are they responsible for any incorrect information that is listed or is on the hyperlinked external sites. All information is subject to change.