Family Farm Loan Program

Phone:  (614) 995-1490

Fax:  (614) 728-2652

E-Mail:  farmloan@agri.ohio.gov

Credit Applicant Eligibility Requirements

 

Lending Institution Eligibility Requirements

Credit Applicant:  In order to be eligible for financial assistance under Section 901.80 of the Ohio Revised Code, an applicant shall demonstrate all of the following:

• Applicant is domiciled in the State of Ohio

• Applicant is unable to obtain sufficient financing from commercial or agricultural lending sources

• Applicant has the ability to repay the loan, primarily from the cash flow of the proposed agricultural operation, and that there is adequate security for the loan

• Applicant has sufficient education, training, or experience in the type of agricultural enterprise for which the applicant requests the financial assistance

• There are no zoning restrictions, environmental regulations, or other impairments to the use of the land for the purpose intended

• The location at which the applicant proposes to use the financial assistance is in an area in which agriculture is the primary land use at the time the application is made and that the land at that location reasonably may not be expected to be converted to a non-agricultural use during the period of time that the applicant's obligation to repay the financial assistance remains outstanding.

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Lending Institution:  Eligible financial institutions are limited to any banking corporation, trust company, savings and loan association, building and loan association, or corporation, partnership, or other institution that is engaged in lending or investing funds for agricultural or other business purposes and that is eligible to become a depository for public moneys.

• A financial institution that wishes to participate in the program shall accept and review applications for loans from eligible applicants.  The financial institution shall apply all usual lending standards to determine the creditworthiness of each eligible applicant, including whether the eligible applicant has the ability to repay the loan and whether adequate security exists for the loan.

• The financial institution shall forward to the Ohio Department of Development the completed loan application of an eligible applicant whom the financial institution has determined to be creditworthy, along with the farm business plan and required management strategy.  The financial institution also shall forward a request by the financial institution to enter into a contract of guarantee.

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Program Description