Dl2—Lancaster Farming, Saturday, November 15,1980 WASHINGTON, D.C. - The U.S. Department of Agriculture’s Farmers Home Administration nor/ has authority to make un subsidized emergency disaster loans to farmers who are able to get credit from commercial lenders. This new authority, granted recently, means the USDA agency will serve credit-worthy farmers previously served by the Small Business Ad ministration, said Alex P. Mercure, assistant secretary of agriculture for rural development. It is expected to add an estimated $4OO million to FmHA’s emergency loan volume for fiscal year 1981 October 1,1980. - September 30,1981, Mercure said. The new authority represents a major change for Fanners Home Ad ministration, Mercure said. Up to now, he said, the agency has made loans only to borrowers who meet the USDA cntenon of being unable to get credit from private lenders. The change affects only loans made by the agency in designated areas hit by natural disasters for losses caused by these disasters. Farmers Home Ad ministration also makes emergency loans for annual production expenses and major adjustments m far ming operation. These loans will continue to be made only to farmers unable to get credit elsewhere. Authority to serve credit worthy borrowers was provided Farmers Home Administration by the Small Business Act of 1980, which became law on July 2, 1980. The intent of the law, said Mercure, is that Farmers Home Administration take over the emergency farm lending earned out by the Small Business Ad ministration to the fullest extent possible. Regulation implementing FmHA now can make to borrowers with other the new insured emergency loan authority were effective October 22. Farmers Home county offices, which have been accepting and processing - but not ap proving - applications for emergency disaster loans from farmers able to get credit elsewhere, now will be able to approve and close these loans. The new law: affects only farmers suffering losses from natural disasters PENNSYIVANIA AGRICULTURE I;3 WE'RE GROWING SETTER •292 4wAM SAVE A7A‘ // FREE TOOL PACKAGE \ (CtT fT includes*!! ■m«cionlfcx w tnsiu»n« toolhcuihvalof k>f hilier and lurrower Power Kmo DAVID H. HAGAN Rt, 136 & Carea Rd, Norrisville, MD 301-692-6902 To replace SBA emeri commencing on or after July 3, 1980, who are located m designated disaster areas. Limits loans to these farmers to $500,000 or the actual amount of loss per borrower, whichever is less. Severly restricts, but does not eliminate, Small Business Administration disaster loans to farmers able to get credit elsewhere will be eligible for con sideration for Small Business Administration ency loans loans for losses to their farming operations only if they have been turned down for such loans by Fanners Home because of legal restrictions. Loans to far mers for losses to residential housing still may be made by either the Small Business Administration or Farmers Home. Provides that Farmers ELECTRIC GENERATOR SYSTEMS • DAIRY FARMS • POULTRY FARMS • FARROWING HOUSES • CONTRACTORS • ETC DETR DIESEL size 60 KW to MANU OR AUTOM ISUZU DIESEL ENGINES FOR AUTOMOTIVE AND INDUSTRIAL APPLICATIONS SIZIS 10 KW to 60 KW 18 HP to 211 HP • High Speed* Low Fuel Consumption • High Power to Weight AUTOMOTIVE ENGINES ARE EPA APPROVER J WE BUILD L.P. GAS I J REBUILT GENERATOR I [ GENERATOR SETS | J SETS ON HAND j 15 YEARS OF EXPE r>£NCE - loans options Home emergency disaster loans to farmers able to get credit elsewhere will be made at a rate of interest reflecting the costs of money to the federal government - currently 11.75 percent. The interest rate for Farmers Home emergency actual loss loans to farmers unable to get credit elsewhere will continue at five percent. MARTIN ELECTRIC PLANTS ISSAC W. MARTIN, OWNER PLEASANT VALLEY IK)., RD 2 EPHRATA, PA (717) 733-79*8 Farmers suffering production losses from disasters commencing on or after July 3 and able to get credit elsewhere may apply for loans at their local county Farmers Home of fices. Those with housing losses only still have the option of applying to either Farmers Home or the Small Business Administration.
Significant historical Pennsylvania newspapers