RALEIGH – Intermediary lenders can now apply for loans through the new Heirs’ Property Relending Program (HPRP). The U.S. Department of Agriculture (USDA) is accepting applications …
RALEIGH – Intermediary lenders can now apply for loans through the new Heirs’ Property Relending Program (HPRP). The U.S. Department of Agriculture (USDA) is accepting applications through Oct. 29, and cooperatives, credit unions and nonprofit organizations are encouraged to apply for these competitive loans, aimed to help agricultural producers and landowners resolve heirs’ land ownership and succession issues.
“Heirs’ property issues have long been a barrier for many producers and landowners to access USDA programs and services, and this relending program provides access to capital to help producers find a resolution to these issues,” said Rob Satterfield, acting state executive director of the Farm Service Agency (FSA). “USDA is committed to revising policies to be more equitable and removing barriers faced by heirs’ property owners is part of that effort.”
Through HPRP, FSA loans up to $5 million at a 1% interest rate to eligible lenders. Then, those eligible lenders will reloan funds to heirs to help resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan.
Intermediary lenders should apply by the Oct. 29 deadline using the HPRP application form (FSA-2637), which can be submitted to FSA by mail:
FSA Deputy Administrator for Farm Loan Programs
Loan Making Division
1400 Independence Avenue, S.W.
Washington, DC 20250
Additionally, FSA will host a webinar at 2 p.m. (eastern time) Sept. 15 for interested lenders, who can register or learn more on the FSA Outreach and Education webpage.
Intermediary lenders must:
If applications exceed the amount of available funds, FSA will prioritize applicants that both: