1. USDA Farm Service Agency EZ Guarantee and Micro Lender Programs

2. Welcome to Our Webinar Keep Background Noise to a Minimum
Mute and Unmute Functions
Interacting With Presenters
Chat Function
Q&A Time Reserved During and End of Webinar
Logan provides Webinar etiquette rules.

3. Webinar Overview Introductions Presentations Q&A Wrap Up
Logan provides and overview of today’s webinar

4. INTRODUCTIONS
Meet our presenters

5. USDA Farm Service Agency
Sr. Loan Officer
Steven K. Ford

6. USDA Farm Service Agency – SD Farm Loan Specialist Kelly Cape

7. Lakota Funds Executive Director Tawney Brunsch

8. FSA - Farm Loan Programs
Makes and Guarantees loans to family farmers
Direct Loan Programs (FSA is lender)
Guaranteed Loan Programs (FSA works through commercial lender)
To promote, build, and sustain family farms
Goal: Graduate its borrowers to commercial credit
Work with:
Beginning Farmers start their operation
Established farmers expand or restructure their operation

9. Benefits of FSA’s Guarantees
FSA - Farm Loan Programs
Benefits of FSA’s Guarantees
Manage credit risk. Transfer a portion of the credit risk to
FSA and reduce the risk of loss.
Increase Customers. By reducing credit risk, the lender can
provide credit to customers they would otherwise have to turn
away.
Improve liquidity. By selling loans in secondary market,
the lender can free up additional funds to lend to other customers.
Manage interest rate risk. By selling loans in the
secondary market, the lender can offer fixed rates
over a longer term.

10. Micro Lender Program (MLP)
Purpose: Increase participation in FSA’s guaranteed loan program by nontraditional lenders
Typically work with small and underserved farmers
Not regulated by typical state or federal regulatory agencies
Initially includes:
Community Development Financial Institutions (CDFI)
Rural Rehabilitation Corporations (RRC)
Banks or credit unions without ag lending experience
Highlights: Who?
CDFI – Treasury
RRC – Authorized long ago; about 23 out there; FSA N.O. has oversight.

11. To be an MLP lender, you must:
Micro Lender Program (MLP)
To be an MLP lender, you must:
Have experience in making business loans
Be subject to oversight
Meet volume and loss standards
Highlights

12. MLP lenders may receive guarantees only on
EZ Guarantee Program
MLP lenders may receive guarantees only on
EZ Guarantee loans up to $50,000 (any
combination of FO and OL outstanding
principal)
Submit only a single application form
Generally no additional information required
Faster approval

13. Guaranteed Loan Eligibility
In addition to other eligibility requirements, the loan applicant must be the operator or owner-operator of a family size farm.
Operator (not investor). Must provide labor and management
Operation must be a family size farm business.
Operation must be a farm. Must produce an agricultural commodity for sale.
Other eligibility requirements include citizenship, no false statements in past dealings with agency, acceptable credit history, unable to receive credit without guarantee, legal capacity, no agency loss, not delinquent on federal debt, no outstanding judgments, no controlled substances convictions.

14. Loan Purposes Chattel-Term (OL) Real Estate (FO)
Purchase farmland
Capital Improvements
Refinance Debt
Chattel-Term (OL)
Machinery
Breeding Livestock
Refinance Debt (OL purpose)
Farm debt payments
Line of Credit (OL/LOC)
Operating Expenses
Living Expenses
Feeder livestock

15. For MLP lenders: $50,000 combined FO and OL
Guaranteed Loans
Farm Ownership (FO)
Operating (OL)
EZ Guarantee Limit
For MLP lenders: $50,000 combined FO and OL
Rate
Determined by lender
Term
Up to 40 years
Term loans up to 7 years
Lines of credit 5 years
Guarantee Percent
Up to 90% (95% in some situations)
Funds Targeted
A portion of funds are set aside for:
Beginning Farmers
Underserved Producers

16. Guarantee Fee Typically a fee of 1.5% is charged for the Guarantee
Guarantee Fee Waived for:
Loans to refinance FSA Direct Loans
Beginning or Underserved Farmers Participating in Direct
FO Down Payment Program
Beginning Farmers participating in a qualified
State Beginning Farmer program
Qualified State Beginning Farmer programs have MOU with FSA.

17. Application Form
Lenders submit a single application form containing:
Loan Applicant and Operation Information
Eligibility Questions (Yes/No)
Loan Amount and Purpose
Security for Loan
Repayment Ability Support
Environmental Questions (Yes/No)

18. Farm Loan Programs
To apply for Micro Lender status contact your Local FSA office or FSA State Office
Web Site:

19. Establish Lending Relationship:
Communication is critical.
Meeting in person is key to developing knowledge of both lenders involved.
Both lenders need an understanding of the other lender’s mission area.
Discuss potential applicants prior to working on applications.
Consider what is the best fit for the customer.
Maintain the working relationship.

20. Lakota Funds Products & Services
Business Development
Business Lending
LOC’s
Ag Loans
Business Coaching/TA
Business Planning
Personal Growth & Asset Building
Credit Builder Loan
Financial Literacy
Matched Savings Program-IDA
VITA
Eagle Nest Housing
Lakota Federal Credit Union
Youth
LNI Business Plan Competition
Child Development Account Program

21. Lakota Funds Ag Lending Program
Loans up to $300K to start or expand ag operations
Most commonly used to acquire a range unit (lease) and
purchase livestock and support operations.
Ideal for encouraging Native producers to enter or
expand their Ag business.
Work closely with local FSA agents to insure the
borrower is utilizing the most beneficial loan product
to meet their needs.
Great way to improve NCDFI’s portfolio by
increasing deployment and decreasing risk (LLR).

22. What Questions do you have?

23. For more information:
Steven K. Ford, Sr. Loan Officer, Farm Service Agency:
Kelly Cape, South Dakota Farm Loan Specialist:
Tawney Brunsch, Executive Director, Lakota Funds:

24. Wrap Up Stay Connected Visit our website, www.nativecdfi.net
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