WHEDA Ready to Launch Revisions to Farm Loan Program in 2009

WHEDA® Ready to Launch Revisions to Farm Loan Program in 2009

CROP increasing loan amount to farmers; CROP lender training sessions scheduled

Madison – The Wisconsin Housing and Economic Development Authority (WHEDA®) announced today that it will be implementing revisions to its Credit Relief Outreach Program (CROP) for the upcoming year. Effective Jan. 1, 2009, CROP, a WHEDA financing resource for farmers that provides guarantees on agricultural production loans, will be increasing the maximum allowable loan amount from $60,000 to $100,000 in response to rising input costs incurred by Wisconsin farmers.

"WHEDA recognized that revisions like these were necessary in order for the CROP program to continue to serve as a valuable resource to Wisconsin farmers in the future," said WHEDA Executive Director Antonio Riley. "We look forward to the positive impact these revisions will have on Wisconsin’s rural communities in 2009."

The loan increase will allow borrowers to obtain more funds and at a lower interest rate than they might otherwise qualify for. In addition to this revision, WHEDA is also modifying the CROP guarantee fee structure, underwriting guidelines, and forbearance agreement procedures in order to streamline the application process.

WHEDA is also extending its Small Business Guarantee program, which guarantees up to 80% or $200,000 on small business loans, to farm operations as well. That guarantee can include loans on fixed assets, permanent working capital or inventory.

CROP lender training sessions are being offered by WHEDA throughout the state to help sort through program changes and serve as a refresher for lenders on program procedures. The training sessions started in late October and finish in December.

Session topics include CROP Guarantee Program Basics and Tips, CROP Updates, FARM Guarantee Program overview, and Agribusiness Guarantee Program Highlights.

Interested participants must register for the training sessions online at http://www.wheda.com/conference/edseminar. Registration must be completed no later than three business days prior to the session date. New and seasoned lenders, loan processors, and other personnel involved in agricultural lending products are encouraged to attend a training session to get ready for 2009.

WHEDA will be providing an updated version of the on-demand CROP training presentation on its web site for lenders who are unable to attend the sessions. These on-demand training sessions will not be available until the new crop program begins in January.

WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information on WHEDA's housing programs, call (800) 334-6873 or browse this web site.