Attention Parents and 4-H'ers!
4/22/08 - Pat BoyEs
FSA makes operating loans to individual rural youths to finance
income-producing, agriculture-related projects of modest size
in connection with their participation in 4-H clubs, Future
Farmers of America, and similar organizations.
Each project must be part of an organized and supervised program
of work. The project must be planned and operated with the
help of the organization advisor, produce sufficient income
to repay the loan, and provide the youth with practical business
and educational experience in agriculture-related skills.
Who may borrow?
To qualify for a loan, an applicant must:
- comply with FSA's general eligibility requirements; be
between 10 and 20 years old;
- reside in a rural area, city, or town with a population
of 50,000 or fewer people;
- conduct a modest income-producing project in a supervised
program of work.
What is the maximum loan amount?
The maximum amount for FSA youth loans is $5000.
What may loans be used for?
Loan recipients may use the money to buy livestock, equipment,
and supplies; buy, rent, or repair needed tools and equipment;
and pay operating expenses for running the project.
What size project can be financed?
Only projects of modest size can be financed. A modest project
is limited in physical size, capital requirements, and overall
objectives.
What security is required?
Applicants must sign a promissory note and be responsible
for repaying the loan. In some cases, a cosigner may be required.
Loan collateral normally consists of crops produced for sale,
livestock, equipment, and other items purchased with loan funds.
What are the repayment terms?
The repayment schedule will be worked out with FSA. Payments
will be tailored to the type of project for which the loan
was made. For example, if the loan is to raise livestock or
crops, it would normally be paid when the animals or produce
are sold.
For More Information
To apply or learn more about youth loans or other loan programs,
please contact your local USDA Service Center.
If you have any questions or have an interest in FSA’s
presentation please contact:
Lincoln County - Web
Steven L King
Farm Loan Manager
(509) 924-7350 x 2
steve.king@wa.usda.gov
Adams County www.fsa.usda.gov/wa
Nancy
Seger or Libby
Anderson at
the FSA Grant County Service Center at 509-754-2463 Ext 2.
Copies
of information and loan application are also available from
the Extension office.
