The Agricultural Loan Guarantee Program
|Incentive Type:||Loan Program|
|Governing Body:||Texas department of agriculture|
|What’s it worth?:||$750,000|
Administered by the Texas Department of Agriculture, this loan program provides loan guarantees up to $750,000 and interest rebates of up to $5000 per year for agricultural enterprises. Borrowers’ credit scores should be at least 650, and the lender, which may be a commercial lending bank or a Farm Credit System Lender, must agree to participate in the loan guarantee program and submit the application to the Texas Agricultural Finance Authority on behalf of the agricultural enterprise borrower.
Loan terms, including loan amount and interest, are determined by the lender and borrower, but the Texas Agricultural Finance Authority has the right to change the terms as a condition of guaranteeing the loan. The loan guarantee will not be longer than ten years.
The loan covers operating expenses, land purchase or lease, or acquisition or improvement of a fixed asset or other agricultural enterprises. The interest rebates are paid directly to the borrower. This is an open enrollment program. Interested agricultural enterprises are encouraged to contact Grants@texasagriculture.gov for additional information about the Agricultural Loan Guarantee Program.