The Minnesota Department of Agriculture is providing funds to farmers to lower borrowing costs! Recently, MDA announced that they are providing COVID-19 relief funds to farmers who are restructuring their debt. This relief provides up to half of the loan guarantee fees on USDA Farm Service Agency (FSA) restructuring loans covered through a new Minnesota Department of Agriculture (MDA) program, paid for through federal COVID-19 funding.
Who is eligible to apply?
In order to be an eligible applicant, you must:
- Have closed on a qualifying FSA restructure loan between May 28, 2020 and December 15, 2020.
- Be in mediation or have recently received a Mediation Notice.
- Have a net worth of $800,000 or less.
- Be a resident of Minnesota.
- Regularly participate in the physical labor or operations in your farming operation.
How should farmers apply?
To participate in the program, you must submit the following documents to the Minnesota Department of Agriculture:
- Completed application form with your signature.
- Completed and signed W-9 Form.
- Lender’s Balance Sheet or FSA Form 2037 demonstrating a net worth of under $800,000.
- Copy of Mediation Request or proof of mediation proceedings.
- Copy of Conditional Commitment from the lender or FSA Form 2232 that shows FSA Guarantee Fee amount.
- Loan Commitment showing the primary purpose of the loan is debt restructuring (over 50% of loan amount).
Applications can be found here and must be received or postmarked by December 1, 2020 and all supporting documentation no later than December 15, 2020. If you have additional questions about the application process or are looking for guidance, contact our agribusiness experts today!
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