The Farm Service Agency (FSA) has updated its Loan Assistance Tool (LAT) to better assist lenders with the loan application process. Originally designed to help farmers and ranchers streamline their loan applications, the LAT now offers new features tailored to meet the needs of lenders, improving access to resources and simplifying loan guarantees.
The LAT provides an interactive, step-by-step guide, allowing users to identify themselves as producers or lenders or proceed directly to the loan application process. With these improvements, lenders now have the tools to efficiently navigate the FSA’s Guaranteed Farm Loan Program, easing workflows and ensuring smoother loan origination and servicing.
FSA’s Guaranteed Farm Loan Program offers vital support to family farmers and ranchers by partnering with lenders. These loans, guaranteed up to $2.25 million, provide lenders with up to 95% protection against financial losses. This partnership allows lenders to originate and manage loans while relying on FSA’s guarantee as a safety net.
Lenders participating in the program must meet eligibility requirements, including regulatory oversight and experience in agricultural lending. Four participation levels are offered:
- Microlender Program (MLP): For small business lenders with a low loss rate.
- Standard Eligible Lender (SEL): Entry-level option for lenders with ag-lending experience.
- Certified Lender Program (CLP): Offers streamlined processes for lenders with proven loan performance.
- Preferred Lender Program (PLP): Reserved for top-tier lenders, providing the fastest processing.
With the LAT update, FSA aims to enhance lender participation, ensuring access to resources that foster agricultural growth and financial security. Visit the improved Loan Assistance Tool for more details.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.