alert caret-right hud lock search menu close LinkedIn Youtube Twitter Facebook Skip to main content

Government Guaranteed Programs


American Federal is a participant in several government guaranteed loan programs, including FSA, SBA and USDA Business and Industry.

American Federal has served the financial needs of the Red River Valley and Lakes Region for more than a century with agriculture and business lending as a cornerstone of our success.

Local decision making and strong relationships with the FSA, SBA and USDA help our clients secure financing to reach their farm and business goals.

FSA Loan Programs

American Federal is a Preferred Lender with the United States Department of Agriculture’s Farm Service Agency (FSA), the highest level an institution can obtain. Our Ag and Business Bankers have the experience and expertise to understand the processes and procedures to work effectively with the FSA. A beginning farmer program is available as well as guaranteed loan programs for real estate, equipment and operating loans. Contact your local Ag and Business Banker for information on the programs.

Beginning Farmer Loans

FSA loans can help a beginning farmer unable to qualify for conventional financing because of limited financial resources to buy farm land. Joint Financing 50/50 Participation Loans do not require a down payment by the beginning farmer. FSA provides up to 50 percent of the financing. Retiring farmers may use this down payment program to transfer their land to future generations.

Guaranteed Farm Ownership Loans

Purchase farm land, build or repair buildings, develop farm land to promote soil and water conservation or refinance debt.

Guaranteed Operating Loans

Purchase farm equipment, feed, seed, fuel, farm chemicals, insurance and more. Operating loans can also cover minor improvements to buildings, land and water development, family living expenses and debt refinancing under certain conditions.

Benefits of a FSA Guaranteed Loan include

  • access credit otherwise unavailable for your operation
  • reduce financial risk
  • expedited approval process with American Federal as a FSA Preferred Lender
  • in participation with American Federal, finance 100 percent of the purchase of farm land
  • assistance in transitioning a farm to the next generation
  • receive a down payment real estate loan with a portion eligible to carry a low fixed interest rate
  • favorable terms to properly structure repayment capabilities
  • reduce scheduled repayment obligations
  • refinance present debt

Contact your local American Federal Ag and Business Banker for details about FSA loans, including borrower eligibility and the application process.

Learn more about the FSA Beginning Farmer and Guaranteed Farm Loan programs or contact your local FSA county office for further information.

SBA Loan Programs

American Federal works with the Small Business Administration (SBA) to make a variety of business financing solutions available to small business clients in any industry for specific purposes.

An SBA loan may be a solution for you if you are a new business or if your business is growing quickly.

The SBA has created a number of government-guaranteed and direct loans designed to help give small businesses that may not otherwise qualify for credit the funds they need. SBA loans make it possible to provide qualified businesses with flexible terms and competitive rates letting them preserve their working capital for other expenses.

SBA loans can be used to construct new or purchase existing commercial owner-occupied real estate, to expand or modernize facilities, purchase equipment, finance business acquisitions, and finance inventory and accounts receivables.

Benefits of many SBA Loans include

  • keep cash in your business with typically a lower down payment
  • solutions for financing soft assets, such as goodwill
  • ability to finance closing costs versus paying out of pocket
  • help to overcome shortage of collateral for the loan
  • flexible terms
  • interest rate caps based on size and type of loan
  • reduce financial risk

To discuss financing solutions for your small business, please contact your local American Federal Ag and Business Banker.

Check out the SBA Loan Programs for more information.

 

USDA Business & Industry Program

American Federal works with the United States Department of Agriculture’s (USDA) Business & Industry program to make a variety of business financing solutions available to business clients in any industry for specific purposes in communities smaller than 50,000.

A USDA guaranteed loan provides solutions similar to some SBA loans, but for larger projects requiring larger loan amounts. Unlike SBA programs, USDA loans may be made to cooperatives and nonprofit entities.

Benefits of many USDA loans include:

  • ability to finance closing costs versus paying out of pocket
  • provide working capital financing
  • flexible terms
  • interest rate caps based on size and type of loan
  • financing for larger facilities in smaller communities
  • reduce financial risk

To discuss financing solutions for your business, please contact your local American Federal Ag and Business Banker.

Check out the USDA Business & Industry Loan Program for more information.

This information offers general advice and is not intended to be marketing, legal or tax advice. Consult your attorney, tax accountant or other professional.