Rural Development Ag Loan Participation

The Loan Participation Program is intended to supplement, not replace, existing credit. Loans are administered and serviced through local lenders. The program participates with banks and borrowers to assist financing capital expenses associated with value-added production or processing projects, and can lend up to 80% of the total loan up to $500,000. Eligible participation loan costs include land needed for the project, buildings and improvements, and machinery and equipment. Terms: 3.5% fixed (2.5% fixed for small/beginning farmers); up to 10 year term based on collateral.

Borrowers financing capital expenses associated with value-added production or processing projects. Loans supplement, not replace, existing credit and are administered and serviced through local lenders. Eligible costs: land needed for the project, buildings and improvements, and machinery and equipment. Program lends up to 80% of the total loan, up to $500,000.

Apply through a local lender using the Rural Development Ag Loan Participation Application (available from SDGOED). Contact the South Dakota Governor's Office of Economic Development.