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The official Guaranteed Farm Loans page says:

FSA guaranteed loans provide lenders (e.g., banks, Farm Credit System institutions, credit unions) with a guarantee of up to 95 percent of the loss of principal and interest on a loan. Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender's normal underwriting criteria.

My question is: how does one find such banks and credit unions?

(I'm aware of the Farm Credit System institutions, but it seems that that System runs under geographical "territories," such that any given person only has one actual institution available to them. I'm looking for more options.)

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The FSA is still offering the loans, but without the interest guarantee. That was suspended in November 2011. If you look in the Federal Register, you'll find the details. It is much more understandable than on the FSA website!

Original FSA Guaranteed Loan Program

The program provides lenders with a guarantee of up to 95% of principal and interest on the loan. The FSA guarantee permits lenders to make agricultural credit available to farmers who would be unable to obtain sufficient credit to fund their farming operations without the guarantee.

Since 1999, the FSA also subsidized 4% of the interest rate on guaranteed loans to qualifying borrowers under its Interest Assistance Program. (Interest assistance was subject to additional eligibility criteria beyond the initial guarantee, blah blah etc).

November 2011

This notice announces that FSA is no longer accepting applications under the Interest Assistance Program due to a lack of funding. However, guaranteed loans will still be available without interest assistance.

Existing agreements will be honored, claims will be paid as agreed, and all eligible servicing options can be pursued.

For further information on specific applications and loans, potential guaranteed loan applicants should contact their lender. FSA office locations can be found at http://www.fsa.usda.gov. A notice will be published in the Federal Register announcing the date FSA will resume accepting applications for the Interest Assistance Program if funding becomes available.
Signed on November 17, 2011. Bruce Nelson, Administrator, Farm Service Agency.

see FR Doc. 2011–30107 Filed 11–21–11. Here's a PDF copy I made on Google Drive. Answer is that you can still apply for the loan, but on slightly different terms!

  • A great explanation about the Interest Assistance, which is information that I also did need, but this question is about finding lenders that originate FSA-guaranteed loans, and I don't think you're addressing that question with your answer here. – feuGene May 2 '14 at 18:54

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