Microloans aim to assist small farmers, veterans, and disadvantaged producers
Washington DC- U.S. Senator Bob Casey (D-PA) announced a new microloan program from the U.S. Department of Agriculture (USDA) designed to help small and family operations, beginning and socially disadvantaged farmers secure loans under $35,000. Senator Casey proposed similar policies in the Growing Opportunities for Agriculture and Responding to Markets (GO FARM) Act of 2011.
“Local farms are job creators in our communities,” said Senator Casey. “This will support small farms in Pennsylvania, which are an essential source of economic activity and are vital to getting healthy, local food from farm to table.”
The new program offers a simplified process to help beginning and small family farmers obtain loans under $35,000. The program will provide resources and assistance to farms through increased equity, enabling new farmers to grow and expand production. The microloan program will also provide a less burdensome, more simplified application process in comparison to traditional farm loans.
Microloans can be used in the start-up process, for essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution costs. As farms grow and their financial needs increase, applicants can seek additional operating loans or obtain financing from a commercial lender under FSA’s Guaranteed Loan Program.
