The MDA's Rural Finance Authority (RFA) established the Agricultural Microloan Program to provide working capital and credit for emerging and specialty farmers. Farmers can borrow up to $20,000 to be used for:
- Annual inputs like seed, feed, fertilizer
- Land rent and other annual expenses
- Equipment and other farm assets with a common useful life of 10 years or less
- Not eligible: land/real estate, cooperative stock, and refinance of current debts
Farmer Eligibility
To be eligible for the Agricultural Microloan Program, applicants must:
- Be a Minnesota resident
- Be a member of a protected group as defined under Minn. Stat. § 43A.02, subdiv. 33 (racial minority, woman, person with disabilities) or qualified non-citizen as defined under Minn. Stat. § 256B.06, subdiv. 4, par. (b) (refugee, immigrant, asylum),
- Raise specialty crops (fruits, vegetables, herbs, and cut flowers) or eligible livestock (open range poultry, sheep, goats)
- Show an ability to repay the loan
Loan Terms
Interest rates and other specific terms will vary from lender to lender depending upon the conditions the loan.
- Maximum loan principle is $20,000
- Interest rate is determined by lender, but cannot exceed 10%
- Loan term of 1 to 6 years negotiated between the lender, applicant, and the RFA
- Loans may contain prepayment penalties under limited circumstances
- Borrower must satisfy the local lender's guidelines. The local lender will control the day to day operation of the loan
Participating Lenders
Below is a list of current approved lenders for the microloan program.
Compeer Financial
Service area: Statewide
Contact: Sai Thao, 952-597-4086, sai.thao@compeer.com
Latino Economic Development Center - Centro para el Desarrollo Econόmico Latino
Service Area: Twin Cities, Long Prairie area
Contact: Andrés Salinas, 612-724-5332, andres@ledcmn.org
United FCS
Service Counties: Chippewa, Kandiyohi, Lac qui Parle, Lincoln, Lyon, Meeker, Redwood, Renville, Swift, Yellow Medicine
Contact:
- Lyn Voigt, Litchfield Office: 320-693-7953
- Scott Anderson, Marshall Office: 507-532-5751
Any lending institution (of a non-profit or for-profit nature) that is in good standing with the State of Minnesota, has the appropriate business structure, and suitable staffing to distribute and collect loan funds, may volunteer to become an Intermediary Lender with the RFA Microloan Program. Lender applications are available in the 'Forms + Resources' box on this page.
