TEXAS   Rick Rhodes Texas Agricultural Finance Authority P.O. Box 12847 Austin, TX 78711 Telephone: (512) 936-0273 Toll Free: (877) 428-7848 FAX (888) 216-9867 Web: www.agr.state.tx.us E-mail Address: finance@agr.state.tx.us Organization Began: 1987 Program/Project Title: Young Farmer Loan Guarantee Program Program Began: 1993 Contact Person: Allen Regehr Cost/Funding: Collection of farm and ranch vehicle fees Target Group: Young farmers and ranchers Description: 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 ag-related business. The proceeds of the commitment may be used to provide working capital, improvements, equipment, or real estate for the farm and/or ranch or agribusiness. Lender determines the Interest rates and are approved by the Authority. Program/Project Title: Interest Rate Reduction Program Program Began: 1998 Contact Person: Mark Kres Cost/Funding: The allocation of State of Texas General Revenue by the Texas Legislature of not more than $30 million Target Group: 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; and e) development of water conservation projects. Description: 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 current market rates. The lender and borrower determine repayment, maturity, and collateral for the loan. The Linked Deposit Program is an interest buy-down and not a guaranteed loan program. Program/Project Title: Rural Development Finance Program (Municipal) Contact Person: Allen Regehr Target Group: Applicants in rural areas of the state Description: 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 the state Attorney General. Application fee of .5 percent; closing fee of 1.00 percent of the total commitment. Choose another state ...

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