Emergency Loans

The Farm Service Agency (FSA) offers direct and guaranteed loans to farmers and ranchers to promote, build, and sustain family farms for a thriving agricultural economy. The goal of FSA’s farm loan program is to provide supervised credit and management assistance to eligible farmers to become owners or operators, or both, of family farms or to continue such operations when credit is not available elsewhere.

General Eligibility for Emergency Loans

Emergency loans may be made to farmers and ranchers who:
I. Own or operate land located in a county declared by the President or designated by the Secretary of Agriculture as a primary disaster area or quarantine area. All counties contiguous to the declared, designated, or quarantined primary counties also are eligible for emergency loans. A disaster designation by the FSA Administrator authorizes emergency loan assistance for physical losses only in the designated and contiguous counties;
II. Are established family farm operators and have sufficient farming or ranching experience;
III. Are citizens or permanent residents of the United States;
IV. Have suffered at least a 30 percent loss in crop production or a physical loss to livestock, livestock products, real estate, or chattel property;
V. Have an acceptable credit history;
VI. Are unable to receive credit from commercial sources;
VII. Can provide collateral to secure the loan; and
VIII. Have repayment ability

If an emergency loan is approved, FSA will notify the applicant in writing of:
1. the approved use of loan funds
2. the interest rate
3. the term of the loan
4. the collateral that will be required to pledge to
secure the loan
5. when the money is expected to be available
6. any pre-loan closing requirements
7. Responsibilities as an FSA direct loan
borrower.

The applicant will need to sign and return the letter accepting the loan conditions. Loan closing will be scheduled as soon as possible after loan approval. Normally, loan funds are
provided within 15 days of approval. If the application for a guarantee is approved, FSA will provide written notification to the lender. FSA receives funding for loans and guarantees on a fiscal year basis, and the demand for some loan types may exceed the level of funding received. When this occurs, a loan can be approved subject to the availability of funding, but it cannot be closed until additional funding is received.

Within 60 calendar days after receiving a complete loan application, the Agency will complete the processing of the Direct loan request and notify the applicant of the decision reached, and the reason for any disapproval.