Beginning farmers & small farms
Peoples Bank is proud to offer a variety of Government Guaranteed Loan Programs to our agricultural community. These programs provide attractive benefits to those who qualify and are designed to help beginning farmers and small farms receive the funding they need to succeed in the ag industry.
FSA Loans
The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) offers a special financing opportunity for beginning farmers. To qualify as a beginning farmer, you must not have operated a farm for more than 10 years, must substantially participate in the operation of the farm, and not own a farm greater than 30 percent of the average size farm in the county.
FSA Loans offer opportunities for joint financing and low down payments. The ag lending team at Peoples Bank knows the ins and outs of FSA loans and are happy to take the time to answer your questions regarding this unique financing opportunity.
SBA Loans
Presented by the Small Business Administration, SBA Loans are not specific to the ag industry but offer opportunities for small farmers and ranchers. SBA Loans are federally guaranteed which means they often require a lower down payment. SBA Loans can be used for a variety of funding needs including real estate, equipment, and working capital. Our ag lending team is happy to discuss this loan option with you. Find out if your operation qualifies for flexible term options, low down payments, and lower interest rates through an SBA Loan from Peoples Bank.
IADD Loans
The Iowa Agricultural Development Division’s (IADD) Beginning Farmer Loan Program (BFLP) provides loans to new farmers with attractive interest rates and terms. Those who qualify benefit from lower interest rates, the ability to purchase from a closely related party (parents, grandparents and siblings) at fair market value, and no restrictions on off-farm income. IADD Loans may be used in conjunction with down payment assistance through a Farm Service Agency (FSA) loan or Loan Participation Program (LPP) loan through the IADD. For more information and to see if you qualify, contact the knowledgeable ag lending team at Peoples Bank.
Why choose Peoples Bank?
At Peoples Bank, our history is rooted in ag lending. We understand the specific needs of our local ag businesses and local farming standards. We’re dedicated to helping local farmers thrive through flexible lending solutions, local decision making, and fast turnarounds. Our agricultural lending team is comprised of members of your local community who understand the needs and challenges faced by the agricultural industry in our area.
We’ll find the right solution for you
As a true community bank, our lenders are connected to the local ag industry and have a detailed understanding of your unique needs. We always take the time to customize our products and services to find the right solution for your ag businesses. Our Ag Loan Experts are ready to help new and existing farmers grow and remain profitable in the future. Stop by one of our ten convenient locations or contact us today!
Frequently Asked Questions (FAQs)
What are FSA loans and does Peoples Bank offer them?
FSA loans are agricultural financing programs administered by the USDA Farm Service Agency (FSA), designed to assist farmers and ranchers who may have difficulty obtaining conventional credit. FSA loan programs include direct operating loans, direct farm ownership loans, and guaranteed loans (where the FSA guarantees a portion of the loan issued by a lender like Peoples Bank). FSA loans can address operating, intermediate-term, and long-term agricultural financing needs. Peoples Bank works with the FSA to help eligible farmers in Iowa, Minnesota, and South Dakota access these government-backed programs, including first-time and beginning farmers who may not yet qualify for conventional financing.
What is the IADD Beginning Farmer Loan Program at Peoples Bank?
The IADD Beginning Farmer Loan Program (Iowa Agricultural Development Division) is a state-supported financing program specifically designed for new and beginning farmers who want to enter or expand in agriculture. Peoples Bank participates in the IADD program to provide beginning farmers with access to loans featuring attractive interest rates and favorable terms that may not be available through conventional lending alone. The program is especially valuable for younger producers or first-generation farmers who are building their equity base and credit history, two factors that can otherwise limit access to traditional farm financing.
Does Peoples Bank offer SBA loans for agricultural businesses?
Yes. In addition to FSA and IADD programs, Peoples Bank offers SBA (Small Business Administration) loans for agricultural businesses with intermediate and long-term financing needs. SBA loan programs provide government-backed guarantees that reduce lender risk and often allow more favorable terms than purely conventional loans. This can be particularly useful for ag operations that are expanding, investing in infrastructure, or diversifying into agricultural processing or direct-to-market activities. Peoples Bank's lending team can help you determine whether an SBA loan, FSA loan, IADD program, or conventional ag loan is the right fit for your specific situation.
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