March 11, 2014. The USDA will be expanding the Farm Storage and Facility Loan Program effective immediately. Under this program small and mid-sized operations are able to secure low-interest financing to build or upgrade permanent facilities to store commodities. Loan terms under this program range from 7 to 12 years depending on the amount of financing obtained. The maximum loan amount available is $500,000. Producers are also required to provide a 15% down payment on the amount of financing obtained.
Notable modifications under the expansion of this program include the fact that security requirements have been eased for loans between $50,000 and $100,000. Prior to the expansion of the program, any loan greater than $50,000 required a promissory note and additional security. With the modifications, a loan up to $100,000 can be obtained with only a promissory note.
The funds provided under this loan program can be utilized to build or upgrade permanent storage facilities for a variety of commodities, including grains, oil seeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits, and vegetables.
For additional information regarding USDA’s Farm Storage Facility Loan program please visit the following link: Farm Storage Facility Loan Program. Continue to monitor the Ag Lawyer on Your Side for current news on Ag Law. Questions? Contact the Goosmann Law Firm at email@example.com or call 712-226-4000.