We are thrilled to announce that the Farm Service Agency’s (FSA) Loan Assistance Tool (LAT) has been updated to better support lenders in the loan application process. Previously designed to guide farm loan applicants, the LAT now includes new features tailored specifically to meet lenders’ needs. 

The LAT provides an interactive, step-by-step guide through the farm loan process. Initially created for farmers and ranchers to help streamline their loan applications, it now extends those same benefits to lenders. The updated tool allows users to access all resources by identifying themselves as either a producer or lender or by going straight to the farm loan application process. 

With these updates, the LAT now offers lenders the tools they need to navigate the farm loan guarantee process with ease, streamlining workflows, and ensuring smoother loan origination and servicing. 

Lenders play a critical role in FSA’s Guaranteed Farm Loan Program, which helps family farmers and ranchers secure loans from commercial lenders. FSA guarantees loans up to $2.25 million, offering lenders peace of mind with up to 95% protection against financial loss.

With guaranteed loans, FSA partners directly with lenders, who are responsible for loan origination, servicing, and oversight. Once a loan is approved, FSA guarantees the loan, ensuring lenders are backed by a safety net in case of losses. 

Eligibility and Participation in the Guaranteed Loan Program
Lenders subject to state or federal regulatory supervision, with experience in agricultural lending, are eligible to participate in the FSA Guaranteed Loan Program.

FSA offers four specific programs for lenders to make and service these loans:
Microlender Program (MLP) - Lenders with experience in making small business loans can participate in MLP. The program has specific criteria, including a loss rate below 3% on small loans, experience in originating 20+ business loans, and being free of government debarment.

Standard Eligible Lender (SEL) - SEL is the basic entry-level program for lenders. Participants must have agricultural lending experience, regulatory oversight, and local community involvement.

Certified Lender Program (CLP) - Lenders under CLP enjoy streamlined loan processing and reduced documentation. To qualify, lenders must meet SEL criteria, maintain a loss rate below 7%, and have processed multiple guaranteed loans. CLP status lasts five years.

Preferred Lender Program (PLP) - PLP offers the highest level of loan origination efficiency. With reduced documentation and faster turnaround times, PLP is reserved for experienced lenders with a loss rate under 3% that have met both SEL and CLP criteria. The agreement lasts five years and is granted by FSA’s Deputy Administrator for Farm Loan Programs.

For more information on the benefits of becoming an FSA lender, visit our new and improved Loan Assistance Tool!