WASHINGTON, D.C. – Congressman Brad Finstad (MN-01) and Congressman Adam Gray (CA-13) introduced H.R. 7426, the USDA Express Loan Act, legislation which would expand the EZGuarantee Loan Program through the U.S. Department of Agriculture (USDA), expediting approval times for certain guaranteed loans – ensuring farmers, ranchers, and rural communities receive timely access to credit. 

Specifically, the USDA Express Loan Act requires USDA to provide lenders with a short, simplified application for real estate and operating guaranteed loans of $1 million or less and mandates USDA notify lenders within 5 business days whether an application is approved or disapproved, 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 90 percent once they make a credit determination. 

Additionally, this legislation requires USDA to create an accelerated application process for Business and Industry guaranteed loans, assisting rural entities for loans up to $400,000. Under the USDA Express Loan Act, loans up to $600,000 would apply for the accelerated process if USDA determines there is no significant increased risk of default. 

“The USDA Express Loan Act will enable USDA to implement a timelier, more efficient loan approval process for the EZGuarantee Loan Program, equipping farmers with the information they need to make financial decisions for their operations,” said Rep. Finstad. “I’m proud to introduce this legislation that will cut red tape in the USDA loan process, while expediting access to credit for our farmers who rely on access to capital in order to feed and fuel the world.” 

"I am proud to have worked across the aisle on such an impactful and commonsense piece of legislation. The USDA Express Loan Act will optimize farmers’ access to capital, ensuring they have the resources necessary to make important decisions regarding their operations," said Rep. Gray. 

“Farm Credit thanks Congressmen Brad Finstad and Adam Gray for introducing the USDA Express Loan Act. This important legislation will require the Secretary of Agriculture to create an expedited process for Farm Service Agency (FSA) farm ownership and operating guarantee loans. This will ensure loans made by preferred lenders, like Farm Credit, can be approved more quickly and will streamline cumbersome paperwork. By cutting red tape, this commonsense legislation will help ensure farmers and ranchers get the credit they need to start or expand their operations — strengthening rural communities and the farm economy in the process." – Christy Seyfert, President and CEO, Farm Credit Council 

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. 

The USDA Express Loan Program would include a maximum loan amount of $1 million and a 50 to 90 percent guarantee.