WHEDA's guarantee on FARM loans takes effect on the date of the Note and is fixed at the approved guarantee amount throughout the term of the guarantee. It will be the lesser of:
 | 25% of the FARM loan; OR |
| Farmer's net worth including the FARM loan; OR |
| $100,000 when any other state or federal credit assistance program(s) is tied to the same Note*; OR |
| $200,000 if no other state or federal credit assistance program(s) is being utilized.* |
*In order for the Lender to obtain the maximum benefit, WHEDA will allow two separate Notes, one with a FARM guarantee and one with other state or federal credit assistance program(s). The Notes cannot be cross-collateralized.
Example #1: Loan amount of $350,000, Farmer's net worth is $132,000. Other state or federal loans are being utilized, however, there are two separate Notes and no cross-collateralization is involved.
The guarantee will be the lesser of:
25% of the loan amount...........................$87,500
Farmer's net worth..................................$132,000
Maximum guarantee allowed....................$200,000
Farm guarantee is $87,500
(GUARANTEE AMOUNT continued)
Example #2: Loan amount of $350,000, Farmer's net worth is $63,000. No other state or federal loans are being utilized.
The guarantee will be the lesser of:
25% of the loan amount...........................$87,500
Farmer's net worth..................................$63,000
Maximum guarantee allowed...................$200,000
FARM guarantee is $63,000
