10.407: Farm Ownership Loans

10.407

Active

Farm Service Agency (FSA) [USDA]

Sept. 21, 2022

Sept. 21, 2022

To assist farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.

F - Guaranteed/Insured Loans

General Eligibility for Direct Farm Ownership Loans The following requirements must be met to qualify for an FSA Direct Farm Ownership Loan, unless otherwise stated in the eligibility requirements for the loan: I. Be a family farmer; II. Have a satisfactory credit history; III. Be a citizen of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and the Republic of Marshall Islands; a U.S. non- citizen national or a qualified alien under federal immigration law; IV. Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs; V. Have the legal capacity to incur the obligations of the loan; VI. Not have outstanding unpaid judgments obtained by the U.S. in any court, excluding judgments filed in U.S. Tax Courts; VII. Not be delinquent on a federal debt; VIII. Must not have provided FSA with false or misleading documents or statements in the past; IX. Not have been convicted under federal or state laws of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last 5 crop years; X. Not have received debt forgiveness from FSA (certain exceptions apply); and XI. Be within the time restrictions as to the number of years they can receive FSA assistance. General Eligibility for Guaranteed Loan Applicants An applicant, including members of an entity applicant, must meet the following eligibility criteria to obtain a guaranteed loan: I. Be a U.S. citizen or legal resident alien which includes Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa and certain former Pacific Trust Territories II. Have an acceptable credit history as determined by the lender III. Demonstrate ability to repay the loan IV. Provide sufficient security for the loan V. Have the legal capacity to incur the obligations of the loan VI. Be unable to obtain a loan without a guarantee VII. Have not received FSA debt forgiveness on more than three occasions on or prior to April 4, 1996; or any occasion after April 4, 1996 VIII. Be the owner or tenant operator of a family farm after the loan is closed. For Operating Loans, the applicant must be the operator of a family farm after the loan is closed. IX. Not be delinquent on any federal debt X. Not have outstanding unpaid judgments obtained by the U.S. in any court excluding judgments filed in U.S. Tax Courts; XI. Not have provided FSA with false or misleading documents or statements in the past; XIII. Not have been convicted under federal or state laws of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last 5 crop years. Applications may also be made by entities. Entities are corporations, cooperatives, joint operations, partnerships, trusts, and limited liability companies. Their members/stockholders must meet these same eligibility requirements. The entity must also be authorized to operate a farm or ranch in the state where the land is located. For socially disadvantages members, they must hold a majority interest in the entity applicant to receive targeted funding.

Individual/Entity, Socially Disadvantaged Applicants(SDA)/Non-SDA; SDA applicant or farmer is an individual or entity who is a member of a socially disadvantaged group. SDA group is a group whose members have been subject to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of: American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women.

10.406 - Farm Operating Loans

10.404 - Emergency Loans

https://sam.gov/fal/556042dcce1f42bb80dc225064ae8d9d/view