Heirs Property Relending Program – for Lenders

Heirs Property Relending Program – for Lenders

 This program may have additional incentives or benefits for those who are underserved. Learn more about our terminology.

 

What is this program?

Rather than USDA providing loans directly to producers, loans are provided to intermediary lenders, who then relend the funds to producers. Here’s how it works:

1. USDA loans up to $5 million to eligible lenders
2. Heirs apply to lenders for loans of up to $600,000 to pay for legal services to help them obtain legal title to their land and create a succession plan
3. Heirs repay loan to lenders
4. Lenders repay loan to USDA

 

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

Intermediary lenders must adhere to the following:

• Be certified as a community development financial institution (e.g., cooperatives, credit unions, non-profits)
• Have experience and capability in making and servicing agricultural and commercial loans that are similar in nature
•  Have worked with socially disadvantaged, limited resource, or beginning farmers

 

Are there any deadlines?

No, applications are accepted on an ongoing basis.

 

Is there anything else I should know?

• Intermediary lenders will repay USDA at the 1% interest rate.
• Selected intermediary lenders will determine the rates, terms, and payment structure for loans to heirs. Interest rates will be the lowest rate sufficient for intermediaries to cover the cost of operating and sustaining the loan.
•  Applicants with at least 10 years or more of experience with socially disadvantaged farmers that are located in states that have adopted a statute consisting of enactment or adoption of the Uniform Partition of Heirs Property Act (UPHPA) will receive first preference. States include: Alabama, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Iowa, Illinois, Mississippi, Missouri, Montana, Nevada, New Mexico, New York, Rhode Island, Texas, South Carolina, Virginia and the Virgin Islands.

 

How do I apply?

Complete FSA – 2637: Heirs Property Relending Program Application for Loan (PDF) and submit via either email or postal mail.

Email:  sm.fpac.fsa.wdc.hprp@usda.gov

Postal Mail: 

Attention: Heirs' Property Relending Program Office
Deputy Administrator for Farm Loan Programs FSA
U.S. Department of Agriculture
1400 Independence Avenue SW, Stop 0522
Washington, DC 20250-0522

 

 

Page last updated: March 21, 2023