The Beginning Farmer Competitive Grant Program operates on a reimbursement basis. If funded, applicants will need access to funds to implement their project before grant funds are received. Because a strong relationship with a financial institution is helpful for any business, applicants are encouraged to speak first with their current financial institution and learn if they have a ‘bridge’ or ‘operating’ loan programs that would meet the business needs for the grant project. An ‘Assignment of Payment’ option can be offered for the grant reimbursement where the applicant directs NYFVI to pay the lender directly.

The list below includes information provided by potential lenders, both public and private, who understand the
needs of small businesses and are aware of this grant program. ‘Track 1’ and ‘Track 2’ references the Beginning
Farmer Competitive Grant Program award sizes.

The U.S. Economic Development Administration also supports institutions in NYS to provide revolving loans to
businesses. A directory for its Revolving Loan Fund program is available here. Not all these lenders will be
familiar with this grant program. If they have questions, they may contact Tim Kaiser, TKaiser@nyfvi.org

Click here for a downloadable .pdf version of this page

Note: These lists are provided to help applicants research options. There is no guarantee that these lenders will be able to provide loans.

STATEWIDE MARKET AREA

Farm Credit East

Area Served: We have 10 offices in New York. From West to East, they are: Mayville, Batavia, Hornell, Geneva, Cortland, Watertown, Potsdam, Cooperstown, Greenwich, and Claverack

Loan sizes: Both track 1 and track 2

Types of loans: Funds can be used for the start-up, improvement or expansion of a farm operation, worker or apprenticeship training (BFCG only), marketing activities, the purchase of agricultural land and physical structures thereon (BFCG only), the purchase of machinery, equipment, the purchase of livestock (BFCG only), the construction or improvement of physical structures, including semi-permanent structures, Architectural and engineering costs, Consultants, Technical service providers

Additional information: We can finance hemp production as prescribed in the Farm Bill but cannot finance Marijuana production until such time as it is federally legal. For grantees needing up to $75,000 in funding, we could finance them through our FarmStart program which offers financing without any collateral or down payment requirements. For grantees needing more than that amount, we would finance them through our normal underwriting process, which typically would require collateral. Grantees can inquire for more details.

Interest rate information: Our interest rates are based on our cost of capital using a formula that incorporates risk and loan size.

Loan Review timeframe: Typically within 10 days.

Contact: chris.laughton@farmcrediteast.com, 800-562-2235, https://www.farmcrediteast.com/

USDA Farm Service Agency

Conditions of loan: Formal assignment of grant, Collateral.

Loan sizes: Both Track 1 and Track 2.

Types of loans: Funds can be used for the start-up, improvement or expansion of a farm operation, marketing activities (BFCG only), the down payment for the purchase of agricultural land and physical structures thereon (BFCG only), the purchase of machinery or equipment, the purchase of livestock (BFCG only), the construction or improvement of physical structures, including semi-permanent structures, architectural and engineering costs, services provided by consultants, services provided by technical service providers. Please go to this link for the types of loans that are best suited for this organization: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index

Additional information: Each loan is case by case – https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index

Interest rate information: Interest rates changes monthly, can be found here: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index

Loan Review timeframe: Offers a commitment to a loan review 60 from receiving completed loan application, and completed environmental review.

Contact: Lynnette Wright, Beginning Farmer Coordinator, lynnette.wright@usda.gov, https://www.fsa.usda.gov

REGIONAL MARKET AREAS

Delaware County Economic Development

Area Served: Serves the county of Delaware.

Conditions of loan: Formal assignment of grant, Collateral, Personal guarantee.

Loan sizes: Both Track 1 and Track 2

Types of loans: Funds can be used for the start-up, improvement or expansion of a farm operation, worker or apprenticeship training (BFCG only), marketing activities (BFCG only), the down payment for the purchase of agricultural land and physical structures thereon (BFCG only), the purchase of machinery or equipment, the purchase of livestock (BFCG only), the construction or improvement of physical structures, including semipermanent structures, architectural and engineering costs, services provided by consultants, services provided by technical service providers.

Additional information: Business Plan Required (we can assist)

Loan Review timeframe: Offers a commitment to a loan review within 30 days for complete applications.

Contact: Lindsay Whitbeck, lindsay.whitbeck@co.delaware.ny.us, https://dcecodev.com/

Mohawk Valley Economic Development District, Inc (MVEDD).

Area Served: Serves the counties of Fulton, Herkimer, Montgomery, Oneida, Otsego, and Schoharie.

Conditions of loan: Formal assignment of grant, Collateral, Personal guarantee

Loan sizes: Both Track 1 and Track 2.

Types of loans: Funds can be used for the start-up, improvement or expansion of a farm operation, the down payment for the purchase of agricultural land and physical structures thereon (BFCG only), the purchase of machinery or equipment, the purchase of livestock (BFCG only), the construction or improvement of physical structures, including semi-permanent structures. We would be able to cover the following: land purchase, building purchase, equipment purchase, building renovations, leasehold improvements, furniture/fixtures, inventory, working capital. Consultants, architectural and engineering costs would fall outside this.

Additional information: The applicant will need to reach out directly for an application. We do ask for supporting documentation – we have a checklist on our application. For any bridge loans for grantees, they will need to prove they have the match ready and we will only cover the grant portion so they can start their project. All applications need to go in front of our board for approval. Right now, we will do loans up to $100,000 and for 12 months. When discussing the length, we did say that if a project was not complete within the 12 months, that we would be able to extend it. So track 1 yes, but track 2 – only up to $100,000. There is a $200 application fee (if approved) and 1/2% commitment fee and 1/2% closing fee. We review applications as they are received. We are starting a program to offer bridge financing to any grant awardee, beginning farmers would be included in that group.

Interest rate information: We have to follow our EDA RLF rules. Interest rate would be 4% fixed (we can’t go below this). Borrower would have interest only payments until the grant is paid to them at which time, the grant money would be paid to us to pay off the total loan.

Loan Review timeframe: As long as all the documentation is included, we normally have an answer to an applicant within a couple of weeks (depends on when we can get a quorum for the board meeting).

Contact: Heather Devitt, hdevitt@mvedd.org, or Reilly Rich, rrich@mvedd.org, https://mvedd.org/