Emergency Loan Program

 Emergency Loan Program  

 

What is this program?

Provides emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.

 

How can I use this program?

Funds may be used to:

• Restore or replace essential property
• Pay all or part of production costs associated with the disaster year
• Pay essential family living expenses
• Reorganize the farming operation
• Refinance certain debts

 

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

Farmers and ranchers must:

• Own or operate land located in a county declared by the President or designated by the Secretary of Agriculture as a primary disaster area or quarantine area. All counties contiguous to the declared, designated, or quarantined primary counties also are eligible for emergency loans. A disaster designation by the FSA Administrator authorizes emergency loan assistance for physical losses only in the designated and contiguous counties
• Have suffered at least a 30% loss in crop production or a physical loss to livestock, livestock products, real estate, or chattel property
• Are established family farm operators and have sufficient farming or ranching experience
• Are citizens or permanent residents of the United States
• Have an acceptable credit history
• Are unable to receive credit from commercial sources
• Can provide collateral to secure the loan
• Have repayment ability

 

Are there any deadlines?

Applications for emergency loans must be received within eight months of the county’s disaster or quarantine designation date

 

Is there anything else I should know?

• Borrowers:
  • Must keep acceptable farm records
  • Must operate in accordance with a farm plan they develop and agree to with local FSA staff
  • May be required to participate in a financial management training program and obtain crop insurance
• Collateral required: All emergency loans must be fully collateralized. If applicants cannot provide adequate collateral, their repayment ability may be considered as collateral to secure the loan. A first lien is required on property or products acquired, produced, or refinanced with loan funds.
• Repayment Terms: The repayment schedule will require at least 1 payment every year. Emergency loans for annual operating expenses must be repaid within 12 months, and not to exceed 18 months if an extended term is necessary.

• Interest Rate: To find the current emergency loan interest rate, visit fsa.usda.gov/farmloans

 

How do I apply?

• Contact your local FSA Service Center
• Complete application forms

 

 

 

Page last updated: May 2, 2023