Program Description Historical COFI Rates   USDA - Farm Service Agency (FSA) FSA offers guaranteed farm ownership and operating loans to farmers who are temporarily in need of credit enhancement. Borrowers include beginning farmers who do not qualify for conventional loans because they have insufficient financial resources, as well as established farmers who have suffered financial setbacks from natural disasters, or whose resources are too limited to maintain profitable farming operations. Loans guaranteed by FSA are originated by local agricultural lenders. Loan guarantees are issued for up to 95 percent of the loan amount. The lender is responsible for servicing the borrower's account, including the collection of payments, for the life of the loan. All loans must meet certain qualifying criteria to be eligible for guarantees. Farmers interested in guaranteed loans must apply via a local agricultural lender, which then arranges for the FSA guarantee as well as eventual sale of the guaranteed portion through the Farmer Mac II program. Farmer Mac purchases FSA Farm Ownership (FO) loans as well as term Operating loans (OL). Farmer Mac does not purchase FSA lines-of-credit (LOC). USDA - Rural Business Service (RBS) The Business and Industry (B&I) Guaranteed Loan Program stimulates rural economies by providing guaranteed loans to rural businesses in communities with populations of up to 50,000. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose of the B&I Guaranteed Loan Program is to create and maintain employment and improve the economic climate in rural communities. USDA and the Farmer Mac II program help achieve this by expanding the lending capability of private lenders in rural areas, helping them make and service quality loans that provide lasting community benefits. USDA - Rural Housing Service (RHS) The Community Facility Guaranteed Loan Program guarantees loans to develop essential community facilities in rural areas with a population of up to 20,000. Guarantees are available to public entities such as municipalities, counties, and special-purpose districts, as well as to non-profit corporations and tribal governments. Applicants must have the legal authority to borrow and repay loans, to pledge security for loans, and to construct, operate, and maintain the facilities. Applicants must also demonstrate that they are financially sound and able to organize and manage the facility effectively. Repayment of a guaranteed loan must be based on tax assessments, revenues, fees, or other sources of money sufficient for operation and maintenance, reserves, and debt retirement. Feasibility studies are normally required when loans are for start-up facilities or existing facilities when the project will significantly change the borrower's financial operations. RHS-Community Programs can guarantee loans made and serviced by local lenders. RHS may guarantee up to 90% of any loss of interest or principal on the loan. RHS can also make direct loans to applicants who are unable to obtain commercial credit.