PENNSYLVANIA

Cheryl Cook
Deputy Secretary for Marketing, Promotion & Program Services
Pennsylvania Department of Agriculture
2301 North Cameron Street
Harrisburg, PA 17110-9408
(717) 787-3418
FAX (717) 787-1247
checook@state.pa.us

Next Generation Farmer Loan Program
March 20, 1998
Cheryl Cook
$10 million
Next generation farmers

Provide an effective means for federal-state-industry partnerships and provide next generation farmers the opportunity to purchase land and other capital-intensive assets to begin their agriculture enterprise. This collaborative program is a partnership between the Pennsylvania Department of Agriculture and the Pennsylvania Department of Community and Economic Development. The program uses federal tax exempt finances to reduce a farmer’s interest rate for capital purchases.

PENNSYLVANIA

Gary W. Smith
Chester County Economic Development Council (CCEDC)
737 Constitution Drive
P.O. Box 959
Exton, PA 19341
(610) 458-5700
Fax: (610) 458-7770
gsmith@cceconomicdevelopment.com
Organization Began: 1960

Machinery and Equipment Loan Fund (MELF)
Gary W. Smith, President and CEO
1960
For new and existing farmers, agricultural processing

This program is designed to stimulate growth and assist the retention of buiness in Pennsylvania by providing low-interest loan financing for a portion of the cost of machinery and equipment purchases to eligible farmers creating or retaining jobs in the Commonwealth. MELF is administered by the Pennsylvania Department of Community and Economic Development and has been adapted to meet specific needs of farmers.

Next Generation Farmers (NGF)
1999
Gary W. Smith
For new farmers

This program assists farmers in the purchase of land, buildings, improvements, machinery and equipment. Borrowers must be a permanent residents of Pennsylvania and at least 18 years of age. The potential borrower must first meet lender credit standards and document to the satisfaction of the lender that they will have access to adequate working capital, farm equipment and livestock, if appropriate. The owner must be the sole owner and principal of the project. The borrower must not have had any prior direct or indirect ownership interest in a substantial amount of land. A substantial amount of land is a parcel, which exceeds 30 percent of the median farm size in the county in which the land is located, or which had at any time during ownership a fair market value in excess of $125,000.

Small Business First Fund (SBFF)
1981
Gary Smith
For new and existing farmers, ag processors

This loan can be used to acquire land and buildings, construct and renovate buildings, and acquire machinery and equipment. Loan amounts are $200,000 or 50 percent of the total project cost, whichever is less. The term of the loan matches the life of the asset.

Small Business Administration (SBA 504)
1983
Gary Smith
For new and existing farmers

The 504 Loan Program is a fixed asset financing program for expanding farms. It is the first federal financing tool to recognize the importance of small businesses int he job creation process through their physical expansion. The "504" is the Economic Development Program of the U.S. Small Business Administration. A farmer must have less than 500 employees. Net worth must not exceed $6 million, and its average net income after taxes for the preceding two years must not exceed $2 million.

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