Overview
The U.S. Department of Agriculture’s Farm Service Agency (FSA)
provides emergency loans to help producers recover from
production and physical losses due to drought, ooding, other
natural disasters, or quarantine.
Loan Uses
Emergency loan funds may be used to:
• Restore or replace essential property;
• Pay all or part of production costs associated with the
disaster year;
• Pay essential family living expenses;
• Reorganize the farming operation; and
• Renance certain debts.
Who is Eligible?
Emergency loans may be made to farmers and ranchers who:
• Own or operate land located in a county declared by the
President or designated by the Secretary of Agriculture as a
primary disaster area or quarantine area. All counties contiguous
to the declared, designated, or quarantined primary counties
also are eligible for emergency loans. A disaster designation by
the FSA Administrator authorizes emergency loan assistance for
physical losses only in the designated and contiguous counties;
• Are established family farm operators and have sucient
farming or ranching experience;
• Are citizens or permanent residents of the United States;
• Have suered at least a 30 percent loss in crop production or
a physical loss to livestock, livestock products, real estate, or
chattel property;
• Have an acceptable credit history;
• Are unable to receive credit from commercial sources;
• Can provide collateral to secure the loan; and
• Have repayment ability.
Loan Requirements
FSA loan requirements are dierent from
those of other lenders. Some of the more
signicant dierences are the following:
• Borrowers must keep acceptable farm
records;
• Borrowers must operate in accordance
with a farm plan they develop and
agree to with local FSA sta; and
• Borrowers may be required to
participate in a nancial management
training program and obtain crop
insurance.
Collateral Is Required
All emergency loans must be fully
collateralized. The specic type of collateral
may vary depending on the loan purpose,
repayment ability, and the individual
circumstances of the applicant. If applicants
cannot provide adequate collateral, their
repayment ability may be considered as
collateral to secure the loan. A rst lien is
required on property or products acquired,
produced, or renanced with loan funds.
United States
Department of
Agriculture
Emergency Loan Program
FARM SERVICE AGENCY
DISASTER ASSISTANCE
FACT SHEET - MAY 2020
EMERGENCY LOAN PROGRAM 2
Loan Limit
Producers can borrow up to 100 percent of actual
production or physical losses to a maximum amount of
$500,000.
Loan Terms
Loans for crop, livestock, and non-real estate losses are
normally repaid within one to seven years, depending
on the loan purpose, repayment ability, and collateral
available as loan security. In special circumstances,
terms of up to 20 years may be authorized. Loans
for physical losses to real estate are normally repaid
within 30 years. In certain circumstances, repayment
may be made over a maximum of 40 years.
Current Interest Rate
To nd the current emergency loan interest rate, visit
fsa.usda.gov/farmloans.
Applicaon Deadline
Applications for emergency loans must be received
within eight months of the county’s disaster or
quarantine designation date.
For More Informaon
This fact sheet is for informational purposes only; other
eligibility requirements or restrictions may apply. To
nd more information about FSA disaster assistance
programs, visit farmers.gov or contact your local FSA
oce. To nd your local FSA oce, visit farmers.gov/
service-center-locator.
FACT SHEET - MAY 2020
