In this blog we previously covered the Beginning Farmer Loan Program. Readers may recall the loan limit is $470,100 and loans can be made for land, buildings, equipment and breeding livestock. The loans are made through a local lender. The program enables lenders to receive federally tax-exempt interest on loans to beginning farmers. There are some restrictions, but qualifying borrowers may also qualify for the Missouri Linked Deposit Program, administered by the State Treasurer’s Office, and receive a lower interest rate.
Missouri Treasurer Clint Zweifel recently announced $39 million has been loaned to SE Missouri farms and small businesses through the Linked Deposit Program. A press release from his office claims these loans have impacted 662 jobs and 112 farmers, and saved borrowers about $663,000. There is currently approximately $200 million loaned across Missouri and another $520 million is available to qualified borrowers. The news release is at: http://www.treasurer.mo.gov/Pressroom/201001/PressRelease20100128101541.asp
Beginning farmers with a sound business plan may want to visit with their lender to explore the possibility of locking in favorable rates during this time of relatively low interest rates.
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