Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

The U.S. Department of Agriculture announced earlier this month plans to extend loan help to even more small business farmers, most notably by increasing the loan limits on its microloan program.

Farmers with small to medium sized operations will now be able to apply for microloans up to $50,000, a $15,000 increase from the current limit. Microloans are small amount loans typically made to underserved populations, especially those that have a hard time obtaining financing with traditional lenders because of a lack of credit or collateral. Many beginning farmers fit into this category and federal microloans can help keep the costs down compared with other business funding options.

The repayment periods are often shorter; in the case of USDA microloans the loans must be repaid within seven years. The application process is usually shorter and less detailed than regular loans. The USDA offers microloans in order to help American farmers purchase things like livestock and feed, farm equipment, insurance or farm structure improvements.

“USDA is continuing its commitment to new and existing family farmers and ranchers by expanding access to credit,” said Agriculture Deputy Secretary Krysta Harden in a statement. “These new flexibilities, created by the 2014 Farm Bill, will help more people who are considering farming and ranching, or who want to strengthen their existing family operation.”

The microloan process will also be simplified by making the application easier and loosening the requirements for “farming experience.” Relevant experience will now include operation or management in non-farm businesses, military leadership positions, and even advanced degrees in agriculture.

The new changes will become effective November 7.

According to the USDA website, it has helped more than 165,000 small business farmers since 2010 with almost $23 billion in microloans and other funding.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources