Youth Loans

What is this program?

Loans to individual young persons to start and operate income-producing projects of modest size in connection with their participation in agricultural youth organizations.

Managing USDA Agency	Type of Assistance	Who Should Apply	Learn More
Farm Service Agency (FSA)	Operating loans of up to $5,000	Youth ages 10 to 20 participating in 4-H clubs, FFA, tribal youth organizations, or similar agricultural-affiliated groups	Visit

How can I use this program?

The loan funds may be used to:

Buy livestock, seed, equipment, and supplies
Buy, rent, or repair needed tools and equipment
Pay operating expenses for the project

Who or what is eligible and what are the eligibility requirements?

Applicants must:

Be between the ages of 10 to 20 and a member of an agricultural organization (e.g., 4H, FFA)
Conduct a modest income-producing project in a supervised* program of work
Be a United States citizen, non-citizen national, or qualified legal alien
Have no controlled substance convictions
Have no past due debt problems
Have not caused the Government a financial loss on previous loan assistance
Have not received debt forgiveness from FSA
Youth loan application requires a recommendation from a project advisor who verifies that he/she will sponsor the loan applicant, has the correct training and experience, and is available to help when needed

The project must:

Be planned and operated with the assistance of the organization advisor
Be able to produce sufficient income to repay the loan amount plus accrued interest in full
Be related to agricultural
Be educational
Be part of an organized and supervised program

Youth loan funds may not finance:

Exotic animals, birds, or fish not normally associated with agricultural production
Non-farm animals, birds, or fish ordinarily used for pets, companionship, or pleasure
Market or process farm products, goods or services not produced by the youth loan applicant, even if it might be agriculturally related

Are there any deadlines?

No. You should begin the application process a few months in advance of needing the funds to allow time for the request to be processed.

Is there anything else I should know?

The maximum loan amount is $5,000. There is no minimum loan amount.
Repayment periods vary from 1 to 7 years depending upon the amount of the loan, the loan purpose, and the project.
Youth loans accrue at the same interest rate as the Direct Operating loan rate
Loans will be secured, in addition to promissory notes, by liens on the products produced for sale and on chattel property, including livestock, equipment, and fixtures purchased with loan funds
If you are between the ages of 10 and 20 years at the time of loan closing, parent(s) and/or legal guardian(s) must consent to the loan application
Young people applying for a Youth Loan are personally responsible for repaying the loan. A co-signer is required only if the project shows possible difficulty in repaying the loan or does not meet security requirements

How do I apply?

Use the Loan Assistance Tool to check your eligibility for FSA Loans, discover FSA loan types, learn about FSA Loan requirements, and walk through the easy-to-understand instructions when completing the forms.
Submit completed plans and budgets signed by the project advisor and parent or guardian along with the FSA application for loan assistance.