Farm Transfer Transition Loans
Highlights
This program is designed for you if you are looking to transfer farm assets or are a young farmer aiming to build your farm. The Transition Loan offers flexible payment options to help you manage cash flow or build equity quickly. You can choose between interest-only payments or principal-plus-interest payments, giving you control over your finances.
Key Benefits:
- No need for capital for a down payment: FCC will finance the down payment for up to seven years.
- Flexible disbursements: Payments to the seller are made over time, up to five years, with interest charged only on the disbursed amount.
- Cash flow management: Improve your cash flow by opting for interest-only payments or build equity with principal-reducing payments.
- AgExpert Bundle: Receive AgExpert Accounting Premium and AgExpert Field Premium for one year (a $499 value).
Why Apply?
- Seller assurance: Sellers are more willing to accept payments over time because FCC guarantees they’ll receive the full sale proceeds.
- Easy qualification: The program is designed to be accessible, making it easier for you to qualify.
- Additional features: Benefit from pre-approved lines of credit, deferred payments, and extended disbursements.
Applying for this program can significantly ease the financial burden of farm transfers, allowing you to focus on growing your business.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Disbursements are made to the seller over a period of up to five years.
- Interest is charged only on the disbursed amount.
- FCC will finance the down payment for a maximum of seven years.
- Choose between interest-only payments or principal-plus-interest payments.
Eligible Expenses:
- Purchase of farm assets.
- Building equity in the farm.
Use of Funds:
- Funds cannot be used for non-farm-related expenses.
Fees:
- No specific fees associated with the program are mentioned.
Qualifications
- Must be involved in farm operations or transferring farm assets.
- Must be a young farmer looking to build a farm or a purchaser of farm assets.
- Must be able to manage payments over time, up to five years.
- Must be willing to choose between interest-only payments or principal-plus-interest payments.
- Must be able to finance the down payment for a maximum of seven years.
Must be interested in improving cash flow or building equity through the loan options.
Disqualifications:
- Businesses not involved in farm operations or transferring farm assets.
- Businesses unable to manage payments over time.
- Businesses not interested in the payment options provided (interest-only or principal-plus-interest).
Description
This program can help you transfer farm assets or start your own farm. You can receive payments over time, up to five years, and you only pay interest on the amount you use. FCC will finance your down payment for up to seven years.
You have flexible payment options. Choose between interest-only payments to improve cash flow or principal-plus-interest payments to build equity faster. You may not need capital for a down payment, making it easier to get started.
Sellers benefit too. They receive payments over time, which can provide tax advantages. Plus, FCC guarantees full payment, so there’s no risk for them. This makes sellers more willing to accept your payment terms.
Program Steps
Gather Required Documentation:
- Financial statements (last 3 years)
- Business plan
- Proof of farm ownership or lease agreement
- Identification documents
- Tax returns (last 3 years)
- Details of assets and liabilities
Choose Payment Option:
- Decide between interest-only payments or principal-plus-interest payments.
Prepare a Down Payment Plan:
- Determine the amount needed for the down payment.
- Plan how to finance the down payment over a maximum of seven years.
Contact FCC Representative:
- Call 1-888-332-3301 or email an FCC representative.
- Find your local FCC office for in-person assistance.
Submit Application:
- Complete the application form provided by FCC.
- Attach all required documentation.
Review and Finalize Terms:
- Discuss and finalize the loan terms with the FCC representative.
- Review the Payment Schedule Guarantee.
Sign Agreement:
- Sign the loan agreement and any other necessary documents.
Receive Funds:
- Funds will be disbursed to the seller over time, up to five years.
- Interest will be charged only on the disbursed amount.
Manage Loan Repayments:
- Make scheduled payments as per the agreed terms.
- Monitor cash flow and adjust as needed to ensure timely payments.