1. Home

1. Resources
2. Farm Loan Pr ...
3. Emergency Fa ...
   
   Emergency Farm Loans
   
   When a twister, flood, or dry spell strikes, or a quarantine is enforced by the Secretary of Agriculture, or when other natural catastrophes happen, FSA's Emergency loan program is there to assist eligible farmers and ranchers rebuild and recover from continual losses.
   
   The Emergency loan program is set off when a natural disaster is designated by the Secretary of Agriculture or a natural disaster or emergency is stated by the President under the Stafford Act. These loans help manufacturers who suffer qualifying farm associated losses straight caused by the catastrophe in a county stated or designated as a primary catastrophe or quarantine area. Also, farmers situated in counties that are adjoining to the declared, designated, or quarantined location might receive Emergency loans.
   
   Resources
   
   Fact Sheet: Emergency Loan Program (PDF, 1.7 MB).
   Fact Sheet: Emergency Disaster and Declaration Process (PDF, 631KB).
   Other FSA Disaster Assistance Programs.
   USDA Disaster Resource Center.
   Direct Loan Making Handbook 3-FLP (PDF, 2.5 MB).
   Access to FEMA Disaster Help and Resources.
   Farmers.gov.
   Application Forms
   
   Download and finish the Emergency Loan Applications and Instructions:
   
   All FSA direct loan applications need the same fundamental kinds. Emergency loan demands have 2 extra forms, the certification of disaster losses and lender confirmation that commercial banking help was denied.
   
   When you meet with your FSA county Farm Loan Program staff, you might be asked to finish extra kinds based on suitable loan program requirements for the loan type.
   
   Emergency Loans Frequently Asked Questions
   
   Loan Purposes
   
   Emergency loan funds may be used to:
   
   - Restore or replace vital residential or commercial property.
   - Pay all or part of production expenses connected with the catastrophe year.
   - Pay essential household living expenditures.
   - Reorganize the household farming operation.
   - Refinance certain non-real estate operating financial obligations.
   Eligibility Requirements
   
   For production losses, a disaster year yield that is listed below the regular production yield of the crop, as determined by the Agency, is required. Losses to quality, such as getting a minimized rate for flood harmed crops, may also be eligible for assistance.
   
   In addition to the general eligibility requirements all loan candidates must fulfill, there are some extra criteria special to the program:
   
   - the loan applicant should be a recognized farmer and either the owner-operator or tenant-operator of the farm at the time of the disaster.
   - loan applicants must plan to continue farming.
   - loan candidates need to get written declinations of credit from organized commercial loan provider- If the loan is higher than $100,000 and less than $300,000, just 1 letter is needed.
   - If the loan is greater than $300,000, 2 letters of declination are required.
   - If the loan quantity asked for is $100,000 or less, this requirement is determined on a case by case basis at the Agency's discretion.
   
   
   Maximum Loan Limitations
   
   The maximum loan quantity for an Emergency loan is $500,000 yet the quantity a loan candidate may get is limited to the real amount of production or physical loss caused by the catastrophe. Physical loss loans are based upon the quantity required to change the lost residential or commercial property, such as saved grain, devices and animals.
   
   Repayment Terms
   
   Repayment terms are based upon the useful life of the security, a loan applicant's repayment ability, and the kind of loss involved. The payment schedule will need at least 1 payment every year. Emergency loans for yearly operating expenditures need to be repaid within 12 months, and not to exceed 18 months if an extended term is needed for the production cycle of the agricultural product.
   
   Rate of interest
   
   Rates of interest are computed and published the 1st of each month. The rates of interest charged is always the lower rate in result at the time of loan approval or loan closing for the type of loan wanted.
   
   Additional Information
   
   We encourage you to contact your local workplace or USDA Service Center to find out more about our programs and the details you will require for a complete application. You likewise ought to have the ability to find a listing in the phone book in the section set aside for governmental/public companies under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA offices enjoy to assist you.