Microloan program offered for farmers in state
The Minnesota Rural Finance Authority (RFA) is now offering a new microloan program designed for new, underserved borrowers with farm capital needs.
The RFA's Agricultural Microloan Program is a pilot program designed to assist farmers who have modest lending needs and who may lack the experience and records typically required by other agricultural lenders.
Participants can access the loan program through a voluntary intermediary lender. It allows eligible farmers to borrow up to $10,000 toward annual supplies such as seed and fertilizer, equipment and similar farm assets.
Loan repayment can be scheduled up to six years. The lender will assist the borrower in developing credit and financial management skills to help advance the farmer's access to traditional credit avenues.
To be eligible for the pilot program, potential borrowers must:
Be a resident of Minnesota.
Be a current farmer or potential farmer, growing specialty crops and/or eligible livestock.
Have a documented business plan, including a viable cash flow projection and a marketing plan.
Be included in a protected group as defined by MN Statute 43A.02; subd. 33.
To find out more about the RFA pilot program and to view a list of current intermediary lenders, visit www.mda.state.mn.us/grants/loans/microloan.
For more information about RFA Agricultural Microloan Program or other RFA lending products, contact RFA at (651) 201-6004 or e-mail senior loan officer Ryan Roles at email@example.com.