New rules for “micro loans” to small and beginning farmers will take effect on Nov 7, said the Agriculture Department in carrying out a provision of the 2014 farm law. The borrowing limit for micro loans will rise to $50,000 from the current $35,000. In addition, USDA said it would simplify the lending process, widen the range of experience that help applicants win a loan and expand the types of businesses that are eligible. “The micro loan changes announced today will allow beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay,” said a USDA statement.
A Federal Register notice on the $50,000 limit on micro loans is available here.
USDA also published a Federal Register notice asking for comments on a pilot project to improve the efficiency of its various farm loan programs, which include real estate, operating, and emergency loans. It will accept comments for 30 days. USDA’s Farm Service Agency said it “expects to conduct at least two to three pilot projects.” The projects are required under the 2014 farm law.