November 20, 2023

Navigating FSA Loans

Are you a farmer or aspiring agricultural entrepreneur with dreams of growth and prosperity? At Citizens First Bank (CFB), we understand the unique financial needs of the agricultural community. We’re here to guide you through the process of securing the right loans for your goals. In this comprehensive guide, we’ll take you through the steps of understanding and accessing Farm Service Agency (FSA) loans through the lens of our collaborative partnership.

Step 1: Meet with a Citizens First Bank Ag Loan Specialist to Learn About FSA Loans

Your journey begins with a visit to Citizens First Bank and a meeting with one of our dedicated Agricultural Loan Specialists. Our specialists are trained to assess your financial situation and provide guidance on whether an FSA loan is the right fit for you. Come prepared with your financial documents, including a balance sheet, three years of tax returns if possible, and a well-thought-out business plan.

Step 2: Know Your Asset Prices

When considering new equipment or expanding your farmland, it’s essential to be well-informed about the prices of these assets. Our experts at CFB can help you understand the market value, enabling you to make informed decisions during the loan application process.

Step 3: Explore the Range of FSA Loans

Once you and your lender determined that an FSA loan is the way forward, it’s time to explore the tailored loan options available through CFB’s collaboration with FSA:

• 50/50 Loan (Farm Ownership- Direct, Joint Financing): A collaborative effort with FSA, where half the funds come from CFB and the other half from FSA, often boasting affordable interest rates.
• 5/45/50 Loan ( Farm Ownership- Down Payment Loan Program): A collaborative arrangement where the consumer contributes 5%, FSA contributes 45%, and CFB covers the remaining 50%. This option offers low interest rates and encourages a collaborative approach to your financial needs.
• Guaranteed Loan Program: CFB takes the lead, financing up to 80% on Real Estate and 70% on Farm Personal Property. This program provides you with long-term fixed-rate options while only working with one loan specialist.

At Citizens First Bank, our commitment goes beyond just facilitating the loan process – we’re here to be your financial partner every step of the way. Our team is dedicated to helping you secure the best loan option that aligns perfectly with your agricultural objectives. If you encounter challenges or have questions along the journey, rest assured that our knowledgeable Agricultural Loan Specialists are just a phone call or a visit away. We understand that the world of loans and financing can be complex, and we’re here to simplify it for you. Whether you need clarification on documentation, assistance in understanding the terms of your loan, or guidance on any concerns that may arise, CFB is your reliable source of support.

Step 4: Seek CFB Assistance if You Don’t Qualify for a FSA Loan

If, for any reason, you are not eligible for an FSA loan, don’t worry – CFB is committed to helping you find a solution. Our financial experts will step in to offer guidance and assistance, ensuring that you can still pursue your agricultural ambitions with confidence.

When you partner with Citizens First Bank, it can open doors to a seamless and collaborative approach to securing FSA loans. Our Agricultural Loan Specialists are here to assist you at every step, ensuring that you’re well-prepared to achieve your agricultural dreams. With CFB by your side, you can confidently navigate the financial landscape and turn your aspirations into a thriving reality. Contact a Citizens First Bank Location today to get started!

Citizens First Bank – Member FDIC and an Equal Housing Lender

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