Interest Assistance Program

 

To provide a 4 percent subsidy to farmers and ranchers, who do not qualify for standard commercial credit. Guaranteed loans are serviced by a lender who has entered into a Lenders Agreement with the agency.

Deleted 02/05/2016 (Archived.) 10.437 Agency: Department of Agriculture
Office: Farm Service Agency GUARANTEED/INSURED LOANS Not Applicable. Consolidated Farm and Rural Development Act, as amended. Individuals, partnerships, or joint operations, legal resident aliens, corporations and cooperatives that meet the eligibility requirements for a guaranteed loan and are able to project the required cash flow margins with the aid of interest assistance. This program aids both the borrower and lender by providing 4 percent of the interest costs and receiving up to a 90 percent guarantee on the loan. No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The lender must submit to the agency on behalf of the applicant, all required forms to the FSA county office, where the proposed operation will be located. Contact the lender in your area for completion of all required forms. Additional information can be obtained by contacting the FSA office in your local area. Farm Service Agency offices are listed in the telephone directory under U.S. Government, Department of Agriculture. Vist FSA website at: www.fsa.usda.gov. Not applicable. Not Applicable. One to 30 days. At the time of any rejection FSA will notify the lender and loan applicant of appeal rights and procedures. Not Applicable. Not Applicable. The Interest Assistance Program can be provided for Operating Loans (OL). Under the interest assistance program, FSA will subsidize 4 percent of the interest rate on loans to qualifying borrowers. Operating Loans (OL) may be used: (1) to finance livestock or farm equipment; (2) to pay annual operating expenses or family living expenses; or (3) to refinance debts under certain conditions. Lines of Credit (LOC) are operating loans for annual operating loan purposes. Funds may be advanced and repaid (revolve) throughout the year. No reports are required. No audits are required for this program. The type of records required will be on a case-by-case basis. This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program. Interest Assistance agreements will be granted for a term not to exceed 5 years from the date the first agreement was signed. Method of awarding/releasing assistance: lump sum. None. Farm Service Agency State Offices can inform applicants of county office locations where applicants may apply for assistance. FSA State Office locations are listed in Appendix IV of the Catalog. Or visit the website at: http://www.fsa.usda.gov. FSA has more than 2,500 county offices serving every rural county in the United States. Bob Bonnet USDA FSA DAFLP LMD
1400 Independence Avenue, SW
, Washington, District of Columbia 20250-0522 Email: bob.bonnet@wdc.usda.gov Phone: (202) 720-3889 Fax: (202) 690-1117 http://www.fsa.usda.gov. 12-4213-0-3-351 - ACIF Guranatee Financing Account; 12-1140-0-1-351. (Guaranteed/Insured Loans) FY 12 $0; FY 13 est $0; and FY 14 est $0 - Guaranteed Operating Loans with Interest Assistance:
No funding was appropriated in FY 2013 and none was requested in the FY 2014 Budget. Maximum Lifetime limit for interest assistance: $400,000. 7 CFR Part 762 and FSA Handbook 2 FLP.
Farm Service Agency Fact Sheets.
FSA Brochure FSA-BR-01 "Your Guide to FSA Farm Loans".
above information is avialable on FSA website at:www.fsa.usda.gov. Not Applicable.