In an effort to cater to more borrowers, the US Department of Agriculture (USDA) has announced a new addition to its range of financing options. EZ Guarantee Loans intends to help financially limited farmers and ranchers get loans for up to $100,000 from approved lenders.
EZ Guarantee Loans are administered by the Farm Service Agency through its Guaranteed Farm Loan Program. The program’s goal is to help farmers and ranchers obtain loans with reasonable terms to finance the purchase of farmland and/or agricultural production.
The EZ Guarantee Program is for smaller loans. It comes with a simplified Guaranteed Loan application process. Approved lenders only have to submit one application form per loan request. This should contain all the necessary information from the borrower. All existing eligibility, loan purpose, security, and other requirements remain the same.
These loans are primarily intended for beginning and underserved farmers who need financial assistance in getting started. But according to Agriculture Secretary Tom Vilsack, those who have been farming for some time may benefit from them too. “These EZ Guarantee Loans will help beginning and underserved farmers obtain the capital they need to get their operations off the ground, and they can also be helpful to those who have been farming for some time but need extra help to expand or modernize their operations,” he says.
In addition to banks and credit unions, the USDA has opened a new category of lenders offering EZ Guarantee Loans. This is so These microlenders will be able to offer these loans, but up to a predetermined sum. Approved organizations, like Community Development Financial Institutions and Rural Rehabilitation Corporations, may offer customers up to $50,000. Meanwhile, traditional lenders can offer up to $100,000.
The USDA is currently providing a 90-day window where the public can review and provide comments for improving the EZ Guarantee Program. Visit https://www.regulations.gov/, reference RIN 0560-AI34 and follow the instructions to submit comments.