The Young Farmer Guarantee Program (YFG) is a guarantee program designed to enhance credit availability for younger farmers who are purchasing capital assets. Loan funds may be used for new purchases of capital assets such as land, buildings, machinery, equipment, breeding livestock, soil and water conservation projects, etc. In some cases, up to 50% of the loan proceeds may be used to refinance existing debt as needed to improve lien positions. All YFG Loans are made through conventional lenders; IFA will provide up to 85% guarantee of principal and interest on the loan made to a qualified borrower. The applicant must be able to demonstrate the loan will cash flow on a projected cash flow statement and provide sufficient collateral for the loan. A YFG Loan may be amortized over thirty years for loans secured by real estate. Loans secured by depreciable property will be amortized over a shorter period. In any event, the maximum term of a YFG Loan shall be fifteen (15) years.
Illinois