Minority and Women Farmers and Ranchers (Socially Disadvantaged Applicant) Loan (SDA)

Loans to historically underserved and women farmers and ranchers are not a special type of loan program or loan type. Rather, this designation refers to a specific funding source known as Socially Disadvantaged Applicant (SDA) funding. To be considered for targeted funding, loan applicants must voluntarily provide race, ethnicity, and gender information.

You do not have to choose between identifying as an historically underserved individual or a beginning farmer, nor is there a "benefit" of deciding between one designation over the other. Identifying yourself as an historically underserved beginning farmer loan applicant is completely acceptable.

While FSA is committed to serving all farmers and ranchers, by statute, FSA targets a portion of all Guaranteed loan funds, Direct Operating and Direct Farm Ownership loan funds, Microloan funding, and Youth loans, to historically underserved farmers and ranchers, which include:

• Women

• African-Americans

• Alaskan Natives

• American Indians

• Hispanics

• Asians

• Native Hawaiians and Pacific Islanders.

To be considered for targeted "SDA" loan funding, loan applicants must voluntarily provide his or her ethnicity, race and/or gender on the loan application. Otherwise, the Agency's loan process and loan requirements are identical for all loan applicants. There is no difference between historically underserved and women applicants and those who do not fall under this funding allocation other than the availability of targeted funding.

Loan Types:

• Direct Operating Loan

• Direct Farm Ownership Loan

• Microloan

For more info, contact your local USDA Service Agent

Helpful Links:

• Fact Sheet: Loans for Socially Disadvantaged Farmers and Ranchers (PDF, 547 KB)

• Direct Loan Making Handbook 3-FLP (PDF, 2.5 MB)

• Annie's Project

• Alaska Native Knowledge Network

• Intertribal Agriculture Council

• Latino Economic Development Center

• Minority Landowner Magazine

• National Hmong American Farmers

• National Women in Agriculture Association

• Farmers.gov