Higher Credit Limit on USDA Loans – WOWO 1190 AM
The USDA says that starting October 1, a higher credit limit will be available for borrowers seeking a guaranteed farm loan. The limit goes from $ 1.776 million to $ 1.825 million. “Farm loans are critical to our customers’ annual operating and living costs, emergency needs and cash flow,” says FSA administrator Zach Ducheneaux (doo-SHEH-know). “The increase in the guaranteed credit limit will allow the FSA to better meet producers’ funding needs as natural disasters and the pandemic continue to affect their operations.” FSA farm loans provide access to finance for a wide range of producer needs, from securing land until financing the purchase of equipment. Guaranteed loans are financed and serviced by commercial lenders. FSA offers up to 95 percent guarantee against possible financial loss of principal and interest. Guaranteed loans can be used for both agricultural and operational purposes. The FSA saw continued strong demand for guaranteed loans in fiscal 2021. The FSA issued more than $ 3.4 billion in guaranteed agricultural property and operating loans. That includes nearly $ 1.2 billion for aspiring farmers. The number of guaranteed borrowers has increased 10 percent over the past decade, and the FSA expects the rising demand for agricultural loans to continue into the next fiscal year.