USDA Streamlines Loans for Small and Urban Farmers

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The Department of Agriculture Thursday announce a streamlined version of USDA guaranteed loans, which are tailored for smaller scale farms and urban producers. The program, called EZ Guarantee Loans, uses a simplified application process. The program is for beginning, small, underserved and family farmers and ranchers, according to USDA. Through the program, they can apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations. USDA Secretary Tom Vilsack said the loans would help farmers obtain needed capital to start or expand their operation. USDA also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering USDA EZ Guarantee Loans. Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers.