AGRICULTURAL
LOAN PROGRAMS
Part-Time Farmer Loan
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PART-TIME
FARMER LOAN
FACT SHEET
ELIGIBILITY
REQUIREMENTS
A Part-Time Farmer is a
person of proven farming ability who:
- Is a citizen of the
United States who has resided in the State of
Hawaii for the preceding three years, or any
permanent resident alien who has resided in the
State of Hawaii for the preceding three years;
and
- Has been operating
the person’s own farm for at least two years
on land owned by the person in fee or on land
rented or leased from others; and
- Is presently devoting
a portion of the person’s time to farming;
and
- Derives between
twenty-five to fifty per cent of the
person’s net cash income from direct
participation in farming in its broadest sense;
and
- Is a sound credit
risk with the ability to repay the money
borrowed; and
- Is willing to carry
out recommended farm management practices.
LOAN RATE
AND AMOUNT
Interest Rate: Fixed at 1% below the prime
rate or at 7-1/2% per annum whichever is less. The prime
rate is set twice a year, on January 1st and July 1st of
each year.
Amount: $25,000
Purposes:
· The purchase, construction,
and improvement of farm production and/or growing
structures; and
· The purchase of farm equipment
and/or livestock; and
· The payment of production and
marketing expenses, including materials, labor, and
services.
Maximum Term: 10 years
Restrictions: The
liquidation of indebtedness incurred for any of the
above purposes and for living expenses shall not be
authorized purposes.
APPLICATION
PROCESS
Loan applications may be
obtained from any Agricultural Loan Division Office. Loan
Officers are available to provide assistance and guidance
on the loan process. In order to be eligible for a direct
loan, applicants must be denied credit from two lenders,
which include banks, savings and loan associations,
credit unions, mortgage loan companies, the Farm Credit
System and/or the U.S. Department of Agriculture.
As part of the application
process, aspects such as repayment ability, collateral,
capital, economic and/or environmental conditions, and
historic performance will be taken into consideration.
Acceptable applications may be approved by the
Chairperson of the Board of Agriculture.
For more information, call or visit one of
our offices.
Oahu: Department of
Agriculture
1428 South King Street, Honolulu, Hawaii 96813
Telephone: (808) 973-9460
Hawaii: Department of
Agriculture
16 East Lanikaula Street, Hilo, Hawaii 96720
Telephone: (808) 974-4140
Kona Civic Center
82-6130 Mamalahoa Highway, Captain Cook, Hawaii 96704
Telephone: (808) 323-7591
Kauai: Telephone:
274-3141, extension 39460 (Toll Free)
Maui: Telephone:
984-2400, extension 39460 (Toll Free)
Molokai: Telephone:
1-800-468-4644, extension 39460 (Toll Free)
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