Guaranteed Ag Loans

Just starting your farming operation? Are your cash needs increasing more quickly than your net worth? If so, a Farm Service Agency guaranteed loan provided by Heritage Bank may be the solution you are looking for. The benefits of the guaranteed loan programs include:

  • Longer terms, which means lower payments
  • Less down payment or collateral to provide
  • Can be secured by crops, livestock, machinery, equipment and real estate
  • Financing is provided by your Heritage Bank Relationship Manger so you don’t have to establish a relationship with an additional lender

In addition to Heritage Bank providing Farm Service Agency guaranteed loans we work closely with them to provide financing for capital purchases. Currently loan programs are available whereby Farm Service Agency provides a direct loan to the borrower and Heritage Bank provides additional financing. There are also programs available that don’t require any down payment to be made by the borrower. The benefit of these programs are:

  • Minimal or no capital required therefore working capital is not reduced
  • Longer terms available on the Farm Service Agency direct loan (up to 40 years)
  • Long term fixed interest rates on the direct loans provided by Farm Service Agency

With all of the Farm Service Agency guaranteed loans, an Interest Assistance Program is available. If the borrower’s cash flow is not sufficient to service the principal and interest payments at the current market interest rates, this program subsidizes the interest rate by four percent.