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Emergency Farm Loans

When a tornado, flood, or drought strikes, or a quarantine is enforced by the Secretary of Agriculture, or when other natural catastrophes take place, FSA's Emergency loan program exists to help qualified farmers and ranchers reconstruct and recover from continual losses.

The Emergency loan program is triggered when a natural disaster is designated by the Secretary of Agriculture or a natural catastrophe or emergency is stated by the President under the Stafford Act. These loans help manufacturers who suffer certifying farm related losses directly triggered by the catastrophe in a county stated or designated as a primary disaster or quarantine area. Also, farmers situated in counties that are contiguous to the declared, designated, or quarantined location may get approved for 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 *

Download and complete the Emergency Loan Applications and Instructions:

* All FSA direct loan applications need the exact same fundamental forms. Emergency loan demands have 2 additional types, the accreditation of catastrophe losses and lender confirmation that industrial banking help was denied.

When you consult with your FSA county Farm Loan Program staff, you might be asked to finish extra types based upon suitable loan program requirements for the loan type.

Emergency Loans Frequently Asked Questions

Loan Purposes

Emergency loan funds might be used to:

- Restore or change important 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 particular non-real estate operating debts.


Eligibility Requirements

For production losses, a disaster year yield that is below the typical production yield of the crop, as identified by the Agency, is needed. Losses to quality, such as receiving a lowered cost for flood damaged crops, might also be eligible for assistance.

In addition to the basic eligibility requirements all loan candidates need to fulfill, there are some extra criteria special to the Emergency Loan 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 candidates must intend to continue farming.

- loan candidates need to get composed declinations of credit from arranged business loan provider- If the loan is greater than $100,000 and less than $300,000, just 1 letter is required.

- If the loan is higher than $300,000, 2 letters of declination are required.

- If the loan quantity asked for is $100,000 or less, this requirement is identified on a case by case basis at the Agency's discretion.

Maximum Loan Limitations

The optimum loan amount for an Emergency loan is $500,000 yet the quantity a loan candidate might receive is restricted to the actual amount of production or physical loss brought on by the catastrophe. Physical loss loans are based upon the quantity required to change the lost residential or commercial property, such as kept grain, equipment and livestock.

Repayment Terms

Repayment terms are based upon the helpful life of the security, a loan applicant's repayment ability, and the kind of loss involved. The repayment schedule will require at least 1 payment every year. Emergency loans for yearly business expenses must be paid back within 12 months, and not to go beyond 18 months if an extended term is necessary for the production cycle of the agricultural commodity.

Interest Rate

Interest rates are calculated 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 motivate you to contact your regional workplace or USDA Service Center to find out more about our programs and the info you will need for a total application. You likewise ought to be able to discover a listing in the telephone directory site in the section reserve for governmental/public organizations under the U.S. Department of Agriculture, Farm Service Agency. Our regional FSA workplaces enjoy to help you.