Farm Storage Facility Loan Program
Farm storage facility loans are provided by the farm service agency (FSA) that operates under the U.S. Department of Agriculture (USDA). These are low interest loans that are provided to builders for the purpose of constructing or upgrading farm storage facilities. The interest rate on these loans is fixed and the repayment term of these farm storage loans is seven years.
It is mandatory to get the loan approved through the local FSA committee before starting any construction or repair work. According to the guidelines of FSA, there are certain criteria under which the loans can be issued. These loans can be provided for the construction of new flat type whole grain storage facility with permanent floors and bulkheads. Apart from this other eligibility criteria include new conventional type cribs or bins for long term whole grain storage, installation of proper electrical services, equipment required for maintenance and improvement of stored product quality, installation of safety equipment, repair and renovation work in the existing facility and installation and permanent fixing of new grain handling units. Any new item that is being installed or any new structure being constructed using finances through this loan program must have a shelf life of around 10 years. These loans are provided only to individuals to build facility for their sole use and not for commercial purpose.
Presence of a satisfactory credit record is the foremost requirement in order to apply for this loan. Apart from this, borrower must be able to satisfy the committee about his repayment ability and must have no delinquency non-tax federal debt. The borrower must be a producer of corn, soybeans, sorghum, rice, oats, peanuts or wheat that is harvested as whole grains. Other eligibility requirements for the loan include that crop must be insured against all perils and floods, demonstration that there is need for a storage facility for the borrower, and the borrower must not be convicted for usage of any controlled substance. A maximum amount of $100,000 can be availed through the farm storage facility loan program.
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