Proceeds of a CROP loan can be used to refinance another CROP loan, but cannot be used to refinance any other indebtedness previously incurred by the Farmer. Refinancing will be permitted for two (2) consecutive years as long as at least 60% of the previous year's CROP loan is repaid.
EXAMPLE: |
Year 1 |
$30,000 loan taken out |
Year 2 |
$12,000 refinanced plus $48,000 new dollars | |
Year 3 |
$24,000 refinanced plus $36,000 new dollars | |
Year 4 |
Cannot receive new guarantee until entire loan is repaid |
The last day to originate a refinanced CROP loan is June 30.
