Missouri Down Payment Loan Program

The Down Payment Loan program can be used by a qualifying Missouri resident to more readily secure a loan from a participating lender by providing or supplementing down payment amounts. It works alongside other MASBDA and federal programs and is administered by the Missouri Agricultural and Small Business Development Authority (MASBDA).

Eligible applicants are individual producers who are Missouri residents and at least 18 years old. The lender must certify that no other private or state credit can be obtained. There are no previous land-ownership restrictions (except when combined with the Beginning Farmer Loan), and purchases may be from close relatives. Financial thresholds: current ratio minimum 1:1; debt-to-asset ratio not exceeding 80%; debt-service coverage minimum 120% (unless a guarantor is provided).

The loan provides a maximum of 30% of the purchase price, or $200,000, whichever is less, with no minimum loan requirement. Eligible uses: agricultural land; machinery, equipment, livestock, trees, nursery stock, or specialty crops; and purchase, construction, or improvement of agribusiness, agricultural buildings, livestock facilities, or processing facilities. Funds cannot refinance existing debt, provide operating capital, or finance residences. Fixed interest rate is adjusted quarterly to Wall Street Journal Prime. Terms vary by use: 3 years (specialty crops/nursery); 7 years (machinery/equipment/livestock); 12 years (construction/facilities); 20 years (real estate/agribusiness); 30 years (real estate with FSA).

Submit a completed application packet with a $100 application fee plus a 1.50% closing fee to MASBDA. Contact (573) 751-2129 or masbda@mda.mo.gov.