Kentucky Ag News
FSA microloan cap grows to $50,000
USDA Farm Service Agency
WASHINGTON — The Farm Service Agency reminds farmers that the FSA borrowing limit for microloans has increased from $35,000 to $50,000. Microloans offer borrowers simplified lending with less paperwork.
The microloan change allows beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay. Microloans are part of USDA’s continued commitment to small and midsized farming operations.
To complement the microloan program, additional changes to FSA eligibility requirements will enhance beginning farmers' access to land, a key barrier to entry level producers. FSA policies related to farm experience have changed so that other types of skills may be considered to meet the direct farming experience required for farm ownership loan eligibility. Operation or management of non-farm businesses, leadership positions while serving in the military, or advanced education in an agricultural field will now count toward the experience applicants need to show when applying for farm ownership loans.
Since 2010, FSA has made a record amount of farm loans — more than 165,000 loans totaling nearly $23 billion. More than 50 percent of USDA’s farm loans now go to beginning farmers. In addition, FSA has increased its lending to socially-disadvantaged producers by nearly 50 percent since 2010.
Review the FSA Microloan Program Fact Sheet for program application, eligibility and related information.