WASHINGTON, D.C. – Congressman Brad Finstad (MN-01) and Congresswoman Angie Craig (MN-02) introduced the USDA Express Loan Act, legislation which would establish a new Express Loan Program through the U.S. Department of Agriculture (USDA), allowing lenders to receive expedited approval for Farm Service Agency (FSA) guaranteed loans. 

Specifically, the USDA Express Loan Act would enable the FSA to issue ownership and operating loan guarantees up to $1 million within thirty-six hours of the lender signing off on the loan, eliminating lengthy wait times for their farmer and rancher customers. In exchange for the expedited approval, lenders would receive a reduced guarantee on these loans of 50 to 75 percent once they make a credit determination. 

“These loans are essential for ag producers, especially young and beginning farmers who rely on access to capital to finance their operation,” said Rep. Finstad. “However, many farmers who depend on access to capital to feed and fuel the world receive loan approvals from their local lenders, only to wait months for approval from USDA. The USDA Express Loan Act will give lenders the resources to get loans approved more quickly, increase responsiveness from the FSA, and ultimately give farmers greater ability to make timely decisions for their operation.” 

“Operating and Ownership Loans are critical to the success of Minnesota’s ag community. I teamed up with Rep. Finstad to introduce the bipartisan USDA Express Loans Act to ensure every Minnesota farmer and producer can access the support they need to keep their operations up and running in a timely manner,” said Rep. Craig. 

"The Minnesota Corn Growers Association thanks Representatives Finstad and Craig for introducing this bipartisan legislation. Availability of capital is critical to family corn farmers, and MCGA supports efforts to streamline access to resources farmers need to operate effectively. We appreciate the support of Representatives Finstad and Craig and look forward to continuing our work with them on behalf of family farmers.” – Dana Allen-Tully, President, Minnesota Corn Growers Association 

“BankIn Minnesota is proud to support the USDA Express Loan Act as introduced by Representative Brad Finstad and Representative Angie Craig. This bill will allow community banks in Minnesota to continue their strong support of Minnesota’s farmers by improving access to credit through more timely credit approvals.  We applaud this positive, bipartisan effort to address this important issue.” – Jim Amundson, President & CEO of BankIn Minnesota 

Full text of the legislation can be found here.

Background: 

FSA Guaranteed Farm Loan Programs help family farmers and ranchers to obtain loans from USDA-approved commercial lenders at reasonable terms to buy farmland or finance agricultural production. 

FSA guarantees farm loans through a commercial lender up to $2,037,000. Financial institutions receive additional loan business as well as benefit from the safety net the FSA provides by guaranteeing farm loans up to 95 percent against possible financial loss of principal and interest. 

USDA Express Loan Program would include a maximum loan amount of $1 million and a 50 to 75 percent guarantee.