Program Description
The emergency loan program aims to help family farmers recover from
losses resulting from natural disasters. These loans can be used to:
- repair or replace buildings or other
structures
- purchase livestock and
equipment
- pay essential farm operating
and family living expenses
- refinance
debt
- repair or replace essential
household contents damaged in the disaster.
These loans cannot exceed
$500,000.
General Program Requirements
To qualify for an Emergency Loan, you must be a U.S. citizen or
permanent resident who owns or controls farm/ranch land that has been
damaged by a natural disaster (including severe drought) and who has been
denied a loan by a commercial lender. Applicants must also have an
acceptable credit history; not have received debt forgiveness from the
Agency; and not have had any controlled substance convictions. For
production loss loans, the applicant must have suffered at least a 30% loss
in yield. Emergency loans may also be made to replace damaged farm/ranch
property.
Loan Terms
The repayment period for emergency loans is based on the type of
loss and the applicant's repayment ability. In most cases, loans for annual
operating expenses must be repaid within 12 months, and loans for losses to
equipment, livestock, machinery, etc. cannot exceed 7 years. The loan term
for losses to real estate cannot exceed 40 years. The interest rate for
emergency loans is 3.75%.
Application Process
For more information, see the Program Contact Information below.
Program Contact Information
You may also obtain information about this program and how to apply
at:
http://www.fsa.usda.gov/FSA/webapp?area=home%26subject=fmlp%26topic=efl
Or you may contact the FSA program manager directly:
jim.radintz@wdc.usda.gov
202-720-1632
You may also obtain information through your local FSA office or
USDA service center. To locate the office nearest you, visit:
http://offices.sc.egov.usda.gov/locator/app?state=us&agency=fsa
Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/
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