Eligible farmers restructuring their debt can get half of the loan guarantee fees on USDA Farm Service Agency restructuring loans covered through a new Minnesota Department of Agriculture program, paid for through federal COVID-19 funding.
The Minnesota Legislature appropriated $175,000 in COVID-19 relief this spring toward a grant program that covers 50 percent of loan guarantee fees for FSA loans to restructure farmers’ debt.
Loan fees are 1.5 percent of the loan value and average $3,000-$5,000 in total.
Farmers currently in mediation will receive first priority for the program funds.
To be eligible, farmers must have closed on an FSA restructure loan between May 28, 2020, and December 15, 2020, and be in mediation or have recently received a mediation notice.
For more information about how to apply and the application, visit the RFA’s Farm Loan Guarantee Fee Grant Program web page.
Applications will be accepted now through December 1, 2020.
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