TEXAS

Robert Wood
Texas Agricultural Finance Authority
P.O. Box 12847
Austin, TX 78711
Telephone: (512) 936-0273 or toll free (877) 428-7848
FAX (512) 936-0300
www.agr.state.tx.us
finance@agr.state.tx.us
Organization Began: 1987

Young Farmer Loan Guarantee Program 1993
Robert Wood
Collection of farm and ranch vehicle fees
Young farmers and ranchers

The program provides up to a 90 percent guarantee not to exceed $250,000 to eligible applicants who wish to establish or enhance their farm and/or ranch operation or establish an agricultural-related business. The proceeds of the commitment may be used to provide working capital for operating the farm and/or ranch. Interest rates are determined by the lender and approved by the Authority.

Linked Deposit Program
1998
Robert Wood
The allocation of State of Texas General Revenue by the Texas Legislature of not more than $25 million. For ag entities that are: a) processing/marketing ag crops, b) producing alternative crops; c) producing crops which have declined due to a natural disaster; d) producing ag crops using water conservation equipment; e) development of water conservation projects; or f) providing nonagricultural goods or services in a rural area.

Encourages private commercial lending at below market rates to eligible participants as outlined above. The proceeds of the commitment may be used for any ag-related operating expense, including purchase or lease of land or fixed asset acquisition or improvements. Interest rates are based on matching the loan maturity date to the closest treasury bill/note maturity date or the end of state's fiscal biennium, typically below market rates. The lender and borrower determine repayment, maturity, and collateral for the loan. The Linked Deposit Program is an interest buy-down, not a credit enhancement program.

Rural Development Finance Program (Municipal)
Robert Wood
Applicants in rural areas of the state

Purchase of real estate, improvements, equipment, water and wastewater systems, municipal infrastructure projects and any other projects to improve the economic development of a rural area. Amount from $100,000 upward, as approved by the Authority's board, not to exceed $500,000 per project for a term of no more than 30 years. Financing over $500,000 subject to approval by State Attorney General. Application fee of .5 percent; closing fee of 1.00 percent of the total commitment.

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