LOAN PARTICIPATION PROGRAM
2023 Interest Rate: 4.00% (Repriced to 7.50% the rate was then decreased by IADD Board on Jan. 23, 2023)
Program Requirements
- Applicants must be a resident of Iowa and 18 years of age.
- Have a net worth of no more than $833,000.
- Have sufficient education, training or experience for the anticipated farm operations.
- Have access to adequate working capital, equipment and other items that are necessary to operate the farm.
- Be the owner/operator.
- Have off-farm income of no more than 50% of their projected total gross income.
- Current Ratio: Cannot be less than 1.1 without guaranteed source of repayment.
- Debt to Asset Ratio: Cannot exceed 80% without guaranteed source of repayment.
- Debt Service Coverage: Cannot be less than 120% without guaranteed source of repayment.
- Corporations, Partnerships, LLCs are eligible but the beginning farmer must be listed as a co-borrower.