Somerville National Bank welcomes you back to our multi-part series, Farm Service Agency Loans Now Offered at Somerville National Bank. If you are interested in starting a farm, owning a farm, or simply expanding a farm, Farm Service Agency Loans are for you! Last week, we expounded on the fact that these loans are designed for those in the farming and/or ranching industry. You learned that Somerville National Bank is dedicated to assisting you in acquiring the funds that you need to achieve success in your farming and/or ranching endeavors. You were provided with basic information on Farm Service Agency Loans. This week, we will provide you with standard information on the types of loans that are available under the Farm Service Agency.
Farm Service Agency Loan Types
The following outlines the three most basic loan types that are currently available through the Farm Service Agency:
- Guaranteed Loan Program – These types of loans from the Farm Service Agency are made by and completely serviced by commercial-based lenders. Examples include banks like Somerville National Bank, credit unions, and/or the Farm Credit System. The Farm Service Agency guarantees the actual lender’s loan for up to 95% loss. The Farm Service Agency approves all of the guarantees associated with the loans and oversees the activities of the lender.
- Direct Loan Program – These types of loan are made directly by the Farm Service Agency. The monies for the loans are obtained from the Federal Government. The Agency specializes in providing credit counseling services and supervision to the borrower. This is done by assisting in the process of evaluating the applicant’s assets such as their real estate, the machinery that they own, and their general equipment.
- Land Contract Guarantee Program – These loans are available by the Farm Service Agency to those that own a farm and/or a ranch and they wish to sell certain types of real estate through the means of a land contract. This is done to aid a farmer or rancher that is just starting out or is at a disadvantage.
Somerville National Bank may or may not offer the loans that were previously outlined. In order to determine which loans are currently available at our financial institution, you will need to contact us directly to discover which loans are currently being offered to our clients. Generally speaking, if you have an interest in owning a farm or ranch, operating a farm or ranch, or conservation, you will need to obtain a Guaranteed Loan from the Farm Service Agency. If you require an emergency loan, or any of the previously mentioned services, you may find it with a Direct Loan. If you are interested in the Land Contract Guarantee Program, you will need either a Prompt Payment Guarantee or a Standard Guarantee Loan.
If you would like more information on what we offer at Somerville National Bank, visit one of our branch offices or click on the following link to contact us by phone: https://somervillebank.net/contacts/