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Guaranteed Loan Program

Summary

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) offers Guaranteed loans to farmers and ranchers to promote, build and sustain family farms for a thriving agricultural economy. Agricultural producers can apply for a Guaranteed loan through FSA-approved commercial lenders. FSA Guaranteed loans are made and serviced by commercial lenders, such as banks, Farm Credit System institutions, or credit unions. FSA guarantees up to 95 percent of the loss of principal and interest on a loan. Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender’s normal underwriting criteria.