The loan program was established to provide debit capital to small farmers
who would otherwise be unable to obtain credit from traditional financial
institutions. The loan program is a supervised credit program supported
by technical assistance. It is structured in this manner in order to reduce
risk of failure and enhance success of the enterprises. An added advantage
is the zero-interest feature which in essence eliminated the cost of borrowing
capital.
Funds May Be Used For: Production, Livestock Enterprises, Equipment,
and Value-Added Agricultural Enterprises.
CRITERIA FOR OBTAINING A LOAN
All requested information below must be submitted before an application
will be reviewed by the committee
1. Small-scale/ limited-resource farmer, or farm organization
2. Total gross farm income not to exceed $50,000
3. U.S. citizen, or permanent resident
4. Permanent resident of Mississippi
5. Emerging crop enterprise is given priority
6. Two letters denying credit for the amount and project requested.
8. Repayment ability
9. Credit worthiness
10. Legal capacity to carry out loan obligation
11. A minimum of 1 year farming experience or educational background
12. Consent to carrying out conditions for loan
13. Loans are limited to one individual per household
14. Applicant must provide adequate security to collateralize the loan.
All security used to support loans must be free and clear of lien, and
a lien search must be provided.
If land is used, please provide legal description and copy of the deeds.
If equipment is used, please provide the following: Proof of Ownership,
Quantity, Kind, Manufacture, Size & Type, Condition, Year of manufacturer
& Serial Number.
If crops are used, provide direction to the field (s), exact number
of acres to be grown, crops booked for the amount requested, verification
of crop insurance and list Alcorn State University should be listed
on all assignment of payments.
15. No production applications will be accepted pass the optimum planting
date.
| Crop |
Begin |
Most Active |
End |
| Corn |
March 27 |
Mar 31-April 28 |
Jun 11 |
| Cotton |
April 14 |
April 28- May 28 |
Jun 9 |
| Soybean |
April 10 |
April 25- May 25 |
Jul 1 |
| Sweet potato |
April 6 |
April 15- Jun 1 |
Jun 15 |
16. Financial records for the past three years. You may submit your
income tax records if you do not have financial records.
17. Your last three years of production and expense history, unless
you have been farming less than three years. (If you have received a
production loan form ASU -SFDC you must provide the center with your
production records)
18. A written description of your proposed operation and the proposed
size of the operation (required for new applicants and existing borrowers
with significant changes in their operations).
19. Form SCS CPA-026, "Highly Erodible Land and Wetland Conservation
Determination, "which will be completed by the local Soil Conservation
Service (SCS)Office upon receipt of Form AD 1026, "Highly Erodible
Land Conservation (HELC) and Wetland Conservation (WC) Certification."
Please contact the local Agricultural Stabilization and Conservation
Service (ASCS) office to initiate the processing of Form AD 1026.
20. A legal description of your owned farm, real estate property and/or
a copy of any lease, contract, agreement, or option entered into by
you or the entity which may be pertinent to the consideration of the
application. When a written lease is not obtainable, you may submit
a statement setting forth the terms and conditions of the agreement
between you and the landlord.
21. Copy of Credit Report (No older than thirty days) originals only
(no copies).
22. Clients with pass due accounts will not be considered for additional
funding unless special arrangements have been made in writing, prior
to applying for the loan.
23. Employees of Alcorn State University are not eligible to receive
loans under this program. (It will be interpreted as a conflict of interest
by the State Auditors office.)
NOTE: There are no charges on any services provided by Alcorn
State University personnel.
If you would like to apply for a loan through the Small Farm Development
Center, a copy of the loan application is available on this web page.
Before attempting to print out a copy of the application you must have
Adobe Acrobat Reader 4.0 installed on your system.
Click here to download Adobe Acrobat Reader 4.0.
Click the button below to view and print the entire or application,
or click on the click on the corresponding links to view and print separate
forms from the application.
