Direct Farm Loan Program

Description

Provide loans to family farms eligible for FSA guarantee.

Use of Funds

Crop production, harvest loans, farm ownership, farm improvements or equipment acquisition.

Financing Method 

Loans are granted by Cal Coastal with a FSA approval and guarantee.

Qualification

Deemed eligible as a family farm by FSA.

Maximum Amount

$1,112,000 (adjusted yearly) for farm operating, equipment loans, and farm ownership loans.

Maturity

Operating loans: maximum term covers crop cycle. Add term loans for crop development purchases. Farm ownership loans-maximum term of 30 years.

Interest Rate

Variable rate on production loans. Fixed rate on farm ownership and term loans (call for more details and terms).

Collateral

Available business and personal assets (machinery and equipment, accounts receivable, inventory and real property)

Fees

2.90 %fee.

More Information

For more information please contact:

Jose Guerra (831) 424-1099, Ext. 220 — Salinas office

Bob Musick (805) 349-0798 — St Maria office