OCR Text |
Show Area Communities Benefit From FmHA Credit Program The Farmers Home Administration is a lending agency of the USDA which provides credit to the people of rural America. Generally, FmllA is a backup agency providing credit on a supervised basis when it Is unavailable from private sources at reasonable rates and terms. Except for the grant money, the loan must be adequately secured and repaid. The basic types of loan authorities are presently as follows: A. Community facility loans to install and repair culinary water systems, sewer systems, hospitals, schools, recreation facilities, libraries, city and county buildings, etc. These loans generally run at S percent for 40 years. B. Business and Industrial Loan Guarantees to purchase, repair, enlarge job creating businesses. Small business Administration works with businesses up to $500,000 loans. The Farmers Home Administration are authorized to amounts in excess of $500,000 up to several million. Interest rates are negotiated between lender and applicant. C. Farm Ownership loans to purchase land, water, complete conservation practices, construct and repair essential farm buildings, refinance outstanding debts, etc. The maximum loan is $100,000 to 5 percent for 40 years. We can join with other long-term lenders up to $225,000. In addition to the other requirements, these loans are available only to applicants for family size farms or less. D. Farm Operating Loans to family size farms up to $50,000, terms 1 to 7 years at 8 percent The purpose of these loans are for current operating expenses; to purchase livestock, machinery ; refinance and most other related operating expenses. E. Emergency Loans and Guarantees up to $1,000,000 and $350,000, respectively, for agricultural purposes. Emergency loan authorization Is Initiated when disasters occur requiring financial assistance to restore, or assist to restore, or alleviate the problem. Interest rates vary. F. Soil and Water Loans at 5 percent up to $100,000 for basically conservation practices. G. Housing loans up to $35,000 from 1 to 8 percent, to construct, repair and purchase modest type homes. In some cases debts can be refinanced. H. Rural Rental Housing loan authority provides for the construction of rental units In line with demand for such services. Loan limits are not established. Other loan authorities: Recreation loans, land conservation, irrigation systems, drainage and conservation, shifts in land use, Indian tribal land acquisition loans, labor housing, rural housing sites, watershed loans and advances, resource conservation and development, industrial development grants, water and waste disposal grants, grazing association loans. We are Interested in providing assistance to those eligible. We will be happy to discuss any question concerning the above Information. |