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Terms
- Minimum loan amount is $10,000; no maximum.
- Maximum guarantee is the lesser of:
- 25% of the FARM loan; or
- the farmer's net worth, including assets and liabilities incurred
with the FARM loan; or
- $200,000*
| * |
Limited to $100,000 if any other state or federal
credit assistance is used for the same loan. |
| NOTE: |
Once the applicable guarantee amount is determined
it remains fixed at that amount throughout the term of the guarantee. |
- Maximum term of the guarantee is 10 years for land and building acquisition and improvements.
- Maximum term of the guarantee is 5 years for acquisition of equipment, machinery or livestock.
- Amortization may exceed the term of the guarantee but cannot exceed
the useful life of the security.
- Interest rate is set by the lender and is subject to WHEDA® approval.
- Loan must be secured by the assets being financed. Additional collateral
may be required including personal guarantees.
Fees
- $150 nonrefundable application fee
- 1.00% of the guarantee amount due upon closing*
*May be financed and included in loan request, but this portion will not be guaranteed.
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