10.099: Conservation Loans
Overview
Program Number
10.099
Status
Active
Last Modified
Aug. 30, 2022
Date Posted
Aug. 30, 2022
Objective
To provide access to credit for farmers who need and want to implement conservation measures on their land but do not have the “up front” funds available to implement these practices. Unlike FSA’s traditional farm ownership and operating loan programs that are targeted toward smaller and less financially established farmers, eligibility requirements for the CL program are expanded to permit FSA to provide assistance to some applicants who may be large and financially strong.
Type of Assistance
F - Guaranteed/Insured Loans
Applicant Eligibility
General Eligibility for Direct Conservation Loans
The following requirements must be met to qualify for an FSA Conservation Loans, unless otherwise stated in the eligibility requirements for the loan:
I. Be a family farmer;
II. Have a satisfactory credit history;
III. Be a citizen of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and the Republic of Marshall Islands; a U.S. non- citizen national or a qualified alien under federal immigration law;
IV. Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs;
V. Have the legal capacity to incur the obligations of the loan;
VI. Not have outstanding unpaid judgments obtained by the U.S. in any court, excluding judgments filed in U.S. Tax Courts;
VII. Not be delinquent on a federal debt;
VIII. Must not have provided FSA with false or misleading documents or statements in the past;
IX. Not have been convicted under federal or state laws of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last 5 crop years;
X. Not have received debt forgiveness from FSA (certain exceptions apply); and
XI. Be within the time restrictions as to the number of years they can receive FSA assistance.
General Eligibility for Guaranteed Loan Applicants:
An applicant, including members of an entity applicant, must meet the following eligibility
criteria to obtain a guaranteed loan:
I. Be a U.S. citizen or legal resident alien which includes Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa and certain former Pacific Trust Territories
II. Have an acceptable credit history as determined by the lender
III. Demonstrate ability to repay the loan
IV. Provide sufficient security for the loan
V. Have the legal capacity to incur the obligations of the loan
VI. Be unable to obtain a loan without a guarantee
VII. Have not received FSA debt forgiveness on more than three occasions on or prior to April 4, 1996; or any occasion after April 4, 1996
VIII. Be the owner or tenant operator of a family farm after the loan is closed. For Operating Loans, the applicant must be the operator of a family farm after the loan is closed.
IX. Not be delinquent on any federal debt
X. Not have outstanding unpaid judgments obtained by the U.S. in any court excluding judgments filed in U.S. Tax Courts;
XI. Not have provided FSA with false or misleading documents or statements in the past;
XIII. Not have been convicted under federal or state laws of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last 5 crop years.
Applications may also be made by entities. Entities are corporations, cooperatives, joint operations, partnerships, trusts, and limited liability companies. Their members/stockholders must meet these same eligibility requirements. The entity must also be authorized to operate a farm or ranch in the state where the land is located.
For socially disadvantaged members, they must hold a majority interest in the entity applicant to receive targeted funding.
Beneficiary Eligibility
Individual/Entity, SDA(Socially Disadvantaged (SDA)/Non-SDA; SDA applicant or farmer is an individual or entity who is a member of a socially disadvantaged group. SDA group is a group whose members have been subject to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of: American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women.
Additional Information
Grant Awards
Conservation Loans direct grants
Grant Opportunities