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Do I qualify for the loan/grant?
A. Each program has its own
set of requirements that should be reviewed as thoroughly as possible.
These requirements may change from time to time, so it is always best to check
before making any submissions. For more detailed information, it is
always best to contact the organization providing the loan or grant or contact
us at RA-AgBusiness@pa.gov
long does it take to receive the money?
A. Times vary from program
to program. Typically, paperwork can take three to four months. The
better prepared you are and the more documentation you have available, the
easier and quicker the process will be.
What documents should I have available when applying for a loan?
A. Previous three years of
tax returns, financial statements, cash flow statements, profit/loss
statements. Also, any history or statement of leans against your property
and lists of your assets.
Why am I contacting the ABDC?
A. While we do not directly
administer any of the listed programs, we have developed a relationship with
the groups that do and have up-to-date information on each of the
programs. The ABDC is a great first stop for finding what programs will
work best for your needs. We also have the most up-to-date information on each
of the programs, to make sure you stay on track with the program you are using.
How can lenders and providers benefit from the ABDC?
A. Agricultural lending is
often an underserved market, so the ABDC will do our best to provide technical
assistance when requested, connect the
appropriate lending institutions to the right producer and help everyone
involved understand the ins and outs of
Who services my loan?
A. Area Loan Organizations,
Industrial Development Authorities, Industrial Development Corporations, state
and federal agencies, as well as private lenders, each share a part in
servicing your loan depending on which loan program you are using. Often,
more than one will have a part in servicing your loan and will require separate
payments. More details can be found in the program specifics.
How do I know if I am in an Ag Security Area?
A. Ag Security Areas are
administered on the township level. Contacting your township supervisor
is often a good first stop. You can also contact the Department of
Agriculture’s Bureau of Farmland Preservation if you have difficulty retrieving
the information from your township. For more information on Farmland
Preservation contact Doug Wolfgang at email@example.com
My credit is not that great, will that affect my ability to qualify?
A. Depending on the
program, credit history will play a significant role in your eligibility.
There are programs available that are meant to help those who do not have the
best credit; these can be accessed through your local SBDC.
Why should I have a business plan?
A. Business plans serve as
your compass to guide and direct your enterprise. It makes concrete your
threats, challenges, opportunities, and assets to meet your business
goals. It also serves as an information support for your lenders and
Why do these programs require multiple copies of the same documents?
A. In most cases, more than
one person is required to review your application during the process.
Multiple copies speed up the dissemination of information to those individuals
and help to provide quicker return times on your projects.
Can I refinance my existing loan?
A. Almost none of the state
and federal loan programs allow refinancing. However, both the First
Industries Fund and USDA have loan guarantee programs that could be applied by
a private lender who is doing your refinance.