Emergency Loans Grant

What is the aim of the Emergency Loans Grant?

The Emergency Loans Grant aims to assist established (owner or tenant) family farmers, ranchers and aquaculture operators with loans to cover losses resulting from major and/or natural disasters, which can be used for annual farm operating expenses, and for other essential needs necessary to return disaster victims’ farming operations to a financially sound basis in order that they will be able to return to private sources of credit as soon as possible.

Who are Eligible to Apply for the Emergency Loans Grant?

The Emergency Loans Grant requires that an applicant:

  1. Not have caused a loss to the Agency after April 4, 1996, or received debt forgiveness on no more than 1 occasion prior to April 4, 1996.
  2. be an established family farmer, rancher, or aquaculture operator (either tenant-operator or owner-operator), who was conducting a farming operation at the time of occurrence of the disaster either as an individual proprietorship, a partnership, a cooperative, a corporation, or a joint operation;
  3. have suffered qualifying crop loss and/or physical property damage caused by a designated natural disaster;
  4. be a citizen of the United States or legal resident alien, or be operated by citizens and/or resident aliens owning over a 50 percent interest of the farming entity;
  5. be unable to obtain suitable credit from any other source(s) to qualify for subsidized loss loans;
  6. have sufficient training or farming experience in managing and operating a farm or ranch (1 year’s complete production and marketing cycle within the last 3 years immediately preceding the application);
  7. be able to project a feasible and sound plan of operation;
  8. be a capable manager of the farming, ranching, or aquaculture operations (in the case of a cooperative, corporation, partnership or joint operation, if members, stockholders, partners or joint operators own a majority interest and are related by blood or marriage, at least one member, stockholder, partner or joint operator must operate the family farm; if not related, the majority interest holder(s) must operate the family farm);
  9. have legal capacity to contract for the loan;
  10. obtain eligibility certification;
  11. provide adequate collateral to secure the loan request;
  12. have crop insurance if available for affected crops comply with the highly erodible land and wetland conservation provisions of Public Law 99-198 (16 U.S.C. 3801 et seq.), (Title 12 and 13) the Food Security Act of 1985 and the Food, Agriculture, Conservation, and Trade Act of 1990.

Assistance for the Emergency Loans Grant is available in the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Trust Territories of the Pacific Islands, when those areas (by county) are designated.

How and Where to Apply for the Emergency Loans Grant?

Application Form FSA 2001 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant’s county. FSA personnel assist applicants in completing their application forms.

How much is the Range and Average of Financial Assistance of Emergency Loans Grant?

The maximum emergency loan amount may not exceed $500,000.
FSA made 313 Emergency Loans in FY 2009. Average loan size $97,130.
FSA estimates 330 Emergency Loans in FY 2010. Average loan size $121,212.
FSA Emergency Loan funding is estimated at $56,000,000 for FY 2011.

For more information on the Emergency Loans Grants, contact:

Trent Rogers,
USDA-FSA-DAFLP-LMD,
1280 Maryland Ave, SW, Suite 240, Washington, District of Columbia 20024
Phone: (202) 720-1657
Fax: (202) 690-1117
Email: trent.rogers@wdc.usda.gov
Web Site Address: http://www.fsa.usda.gov

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