USDA Finalizes New Microloan Program
Microloans up to $35,000 aim to assist small farmers, veterans, and
disadvantaged producersWASHINGTON, Jan. 15, 2013 — Agriculture Secretary Tom Vilsack
today announced a new microloan program from the U.S. Department of
Agriculture (USDA) designed to help small and family operations,
beginning and socially disadvantaged farmers secure loans under
$35,000. The new microloan program is aimed at bolstering the
progress of producers through their start-up years by providing
needed resources and helping to increase equity so that farmers may
eventually graduate to commercial credit and expand their
operations. The microloan program will also provide a less
burdensome, more simplified application process in comparison to
traditional farm loans.
“I have met several small and beginning farmers, returning
veterans and disadvantaged producers interested in careers in
farming who too often must rely on credit cards or personal loans
with high interest rates to finance their start-up
operations,” said Vilsack.“By further expanding access
to credit to those just starting to put down roots in farming, USDA
continues to help grow a new generation of farmers, while ensuring
the strength of an American agriculture sector that drives our
economy, creates jobs, and provides the most secure and affordable
food supply in the world.”The new microloans, said Vilsack, represent how USDA continues to
make year-over-year gains in expanding credit opportunities for
minority, socially-disadvantaged and young and beginning farmers and
ranchers across the United States. The final rule establishing the
microloan program will be published in the Jan. 17 issue of the
Federal Register.Administered through USDA’s Farm Service Agency (FSA) Operating Loan
Program,
