WHEDA will allow more than one Note to a Farmer per calendar year, however will assign only one loan number which combines all amounts. All program parameters and fees apply if more than one Note is written.
If any increase to a loan amount causes the aggregate loan amount to equal $50,000 or more, the percentage of guarantee on the entire aggregate amount is 80%.
EXAMPLE: |
First Note of $30,000 receives a 90% guarantee; Second Note, an additional $30,000, receives a percentage of guarantee on both Notes of 80% since aggregate amount is $50,000 or greater |
If a loan needs to be increased the following documents must be forwarded to WHEDA.
· Loan Amount Change Request (CROP Form 4)
· Copy of the Note or Supplemental Loan Agreement for the additional amount only
· Application fee, if due*
*An additional application fee will be due, if any increase to a loan amount causes the aggregate amount to equal $40,000 or more.
EXAMPLE: |
First Note, at $30,000, has a $200 application fee due; Second Note, at $20,000, has an additional $200 application fee due since the aggregate amount is $40,000 or greater. |
EXAMPLE: |
First Note, at $40,000, has a $200 application fee due; Second Note, at $10,000, has no additional fee due since the aggregate amount of the first loan was $40,000 or greater. |
WHEDA will review the documents and if all items are correct, will issue a new Guarantee Commitment Letter.
The CROP loan may not be utilized as a revolving line of credit.
EXAMPLE: |
If a Farmer first obtained a $60,000 CROP loan in May and prepaid $30,000 in August, they are not eligible to receive an additional $30,000 in September. |
If there are any questions about increases, please call WHEDA's origination staff.
